You may remember a little rant we (and others) went on not so long ago about CNN buying what the Big 4 were selling re: growing business in shrinking economy.
Well! The gang over The Big Four Blog have put out a performance analysis (PDF can for download: big4_media_kit.pdf) for the firms’ 2009 revenue and their conclusions tell a different story.
From the Executive Summary:
2009 was a difficult year overall for the Big Four accounting firms: Deloitte, Ernst & Young (E&Y), KPMG and PricewaterhouseCoopers (PwC), as their financial performance was affected by tough external conditions, slow global economic growth, cost-conscious clients and sluggish merger and acquisition activity.
After an extraordinary period of continuous revenue growth from the early 2000s to 2008, combined revenue for the four firms in fiscal 2009 did fall by 7% from fiscal 2008 in US dollar terms. Revenue decreases in US dollar percentage terms ranged from negative 5% for Deloitte to negative 7% each for Ernst & Young and PricewaterhouseCoopers to negative 11% for KPMG.
One of the more interesting tidbits was presented in the chart below:
After a growth in employment of over 10% in 2008, the rate dropped to 2% for 2009 and judging by the firms’ expectation to offer less internships this year we’d expect that trend to continue.
It’s worth noting that even in the rebuilding year, the firms’ combined revenue was $94 billion so no one is starving but, as BFB pointed out, the firms near decade long run of growth has now come to a screeching halt.
With all the new information, CNN might consider a follow-up story. We’d be happy to take a look at it. Or they may just leave it there:
|The Daily Show With Jon Stewart||Mon – Thurs 11p / 10c|
|CNN Leaves It There|