Big Four Global Revenues Ride Historic Highs
Rebound led by growth in emerging nations.
The years 2009 and 2010 may have been tough years for the Big Four amid a global financial crisis. But they clearly rebounded in 2011. And, the authors of a new report say, “The outlook for 2012 and beyond is quite optimistic.”
Analysts at Big4.com, a recruiting hub which focusses on Deloitte & Touche, Ernst &
Young, KPMG and PricewaterhouseCoopers, say revenue is expected to grow “with help from strong emerging markets, advisory services, and conversions to IFRS.”
Big Four total global employment and percentage change
And in the horserace for bragging rights, they add, “2012 will also prove whether PwC can be the leader and whether KPMG can overtake E&Y.”
Results for 2011 were “extraordinarily buoyant,” they say, with all service lines and geographies recording “terrific growth” from 2010, lifted by emerging countries, improvements in equity markets, and return to global economic growth and executive optimism.
Combined 2011revenue for the four firms rose to historic high levels of $103 billion, up 9% from 2010, and surpassing the previous record of $101 billion set in 2008.
Ernst & Young revenues grew the slowest, at 7.6%, surpassed by Deloitte, at 8.4%, PwC, 10% and KPMG, 10.1%. PwC posted 2011 revenues of $29.2 million, $400 million more than Deloitte, thus reestablishing its leadership position as “the largest accounting firm on the planet.”
In terms of geography, the Americas’ share of global revenue is at 40% and falling. From
2010 to 2011 however, Americas revenue grew 9.9%. Europe, at a 44% share, grew the slowest, at a 5.4% rate. Asian revenues more than doubled from $7 billion in 2004 to $17 billion in 2011, and grew a “spectacular” 17.4% in 2011.
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By service line, audit fee rebounded 5% in 2011, accounting for 47% of total revenues. Tax rose 7%. Advisory services boomed 16% in 2011, growing to 31% of all revenues from 22% in 2004.
Altogether, the Big Four firms employ more than 650,000 people across the globe, with 35,000partners overseeing a steep pyramid of about 490,000 professionals. Net employment increased by 36,000 in 2011.
Click here to get the instant download: “The 2011 Big Four Firms Performance Analysis by Big4.com,” (PDF, 20 pages)
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