Jack Weisbaum's final year as the most interesting accounting CEO in the world will go down in the book as a good one. The firm announced $618 million in revenues for fiscal year 2012. That's an increase of 8%. Each line of business saw increases with consulting coming in 36% higher than last year, tax […]
Yes, that’s a question for the group. But first, we should mention that despite the glaring lack of exclamation points, you can’t help but think that T Fly is running around 345 Park (or wherever he puts his feet up these days – is he in A/dam?) high-fiving everyone that crosses his path about the slight uptick in this year’s results:
AMSTERDAM, Dec. 16, 2010 /PRNewswire/ — KPMG, the global network of professional services firms providing Audit, Tax and Advisory services, today announced member firm combined revenues totaling US$20.63 billion for the fiscal year ending September 30, 2010, versus US$20.11 billion for the prior fiscal year, representing a 2.6 percent increase in U.S. dollars; a 0.1 percent increase in local currency terms.
“These combined FY10 revenues overall reflect positive and improving business performance across the KPMG network of firms and functional businesses worldwide,” said Timothy P. Flynn, Chairman of KPMG International.
“This improvement underscores the strength of our brand and that, in a significantly changing economic and regulatory environment, clients and stakeholders value how the high-performing people of KPMG are cutting through complexity, delivering informed perspectives and clear solutions to them,” he said.
And if it wasn’t for Google – GOOGLE! – the House of Klynveld would be the idealist employer on the globe!
Flynn added, “KPMG was pleased to be honored by Universum, the global talent consultant, this year for its ability to attract the very best people. Universum announced that students worldwide ranked the KPMG network globally second, behind only Google, as an ‘ideal’ employer. This is strong affirmation of our priority to making KPMG a magnet for talent and a place where people can maximize their potential.
“The caliber of talent is a true differentiator among professional services firms in the global marketplace, and KPMG member firms worldwide will continue to invest in their people in the year ahead, attracting the best and most diverse talent. Our growth plans call for us to recruit approximately 250,000 people over the next five years,” Flynn said.
Whether “recruit approximately 250,000 people over the next five years” actually translates to putting asses in the cubicles, will remain another matter since every firm on Earth claims to ratcheting the hiring up a notch. Anyway, feel free to discuss whatever you like related to the Radio Station revenue results, including the likelihood of more bovine flesh in your future.
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 Exe ckquote>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|
The wait is over Klynveldians. Your firm’s revenue results are out and — not to put fine a point on it — they’re disappointing.
The press release has the typical spin that we’ve come to expect from the Big 4 bigiwigs as Tim Flynn focuses on the, ‘high growth markets’ and the opportunities that arise out of ‘a markedly changed regulatory environment’ (code for: “Democrats are in power”).
These “opportunities” are noted but the numbers speak for themselves. As Big Four Blog notes, “A drop in revenue was expected, the surprise was the magnitude of the drop, which was higher than other Big4 firms.”
From the press release:
KPMG, the global network of professional service firms providing Audit, Tax and Advisory services, today announced member firm combined revenues totaling US$20.11 billion for the fiscal year ending September 30, 2009, versus US$22.69 billion for the prior fiscal year, representing an 11.4 percent decline in U.S. dollars.
“While overall revenue results for the 2009 fiscal year reflected the global economic downturn, we were pleased that our continued investments in high growth markets resulted in continued growth in those country member firms,” said Timothy P. Flynn, Chairman of KPMG International.
The drop in revenues breaks down like this:
• Audit – $9.95 billion in FY09 versus $10.69 billion in FY08, a 6.9% decline in U.S. dollars.
• Advisory – Revenues of $6.07 billion in FY09, versus $7.27 billion in FY08, a 16.6% decline in U.S. dollars.
• Tax – $4.09 billion in FY09 compared with $4.73 billion in FY08, a 13.4% decline in U.S. dollars.
The numbers certainly speak to the tough year that KPMG professionals have witnessed through many rounds of layoffs and several shake-ups that appear to be part of major restructuring in the U.S.
So now that the 2009 earnings season has come to a close, all the firms can focus on making 2010 less crappy. That should be breeze. We shall see. If you’ve got thoughts on the Radio Station’s year, or want to talk about how psyched you are for 2010, discuss in the comments.
KPMG reports 2009 revenues of US$20.1 billion [Press Release]
See also: KPMG 2009 Revenues of $20 B Drop 11%, Most Among Big Four Firms [The Big Four Blog]
International Global Coordination B.V. announced their global revenue results today of just a smidge over $5 billion. This represents a drop of 4.5% compared to the firm’s prior fiscal year end of September 30.
“Our revenues have been affected by difficult market conditions – particularly in the economies of our largest member firms – and the significant reduction in transaction-based activity. Our results have also been affected by currency movements and, in particular, the weakening of many currencies against the US dollar and the euro. We are therefore extremely pleased that overall revenues in euro have grown and that there is only a modest reduction in overall fees when expressed in US dollars,” said Jeremy Newman, CEO of BDO International. “It is particularly pleasing that at a time when many other accounting networks are showing a decline in fee income that our underlying revenues, excluding the effect of currency movements, have increased by almost 5 percent.”
A little less spin from J. New than other Global Chiefs but still the standard optimism. We can’t wait for his blog post. Hopefully he gets more candid but we’re not holding our breath.
On more of a liability note, we were especially impressed with the firm’s “about” section:
BDO International is a world wide network of public accounting firms, called BDO Member Firms. Each BDO Member Firm is an independent legal entity in its own country. The network is coordinated by BDO Global Coordination B.V., incorporated in The Netherlands with its statutory seat in Eindhoven (trade register registration number 33205251) and with an office at Boulevard de la Woluwe 60, 1200 Brussels, Belgium, where the International Executive Office is located. BDO is the brand name for the BDO International network and for each of the BDO Member Firms. The combined fee income of all the BDO Member Firms was $5.03 billion in 2009. The global network has 1,138 offices in 110 countries and more than 46,000 people provide advisory services throughout the world.
Of the six sentences in this paragraph, four seem to be meant to remind everyone that the U.S. firm is on the hook for the $521 million owed to Banco Espirito. Any chance the non-U.S. firms are passing around a basket to help the good old US of A? Anybody? Maybe they’ll think about it? It’s the holidays for crissakes.
Anyhoo, we’re just waiting on KPMG for last major firm to give us the BIG NEWS about their 2009. Maybe it drops tomorrow during the bear manufacturing? Stay tuned.
BDO International Network Announces Revenue Results for 2009 [Press Release]
Earlier GC Coverage of Firm Revenue Results:
The Grant Thornton ‘Global Six’ Campaign Has Hit a Snag
PwC Global Revenue Was Down or Flat, Your Choice
E&Y Revenue Results: ‘Flat revenues certainly don’t tell the whole story’
Deloitte Is Super Proud of Their Presence on Linked In
Grant Thornton’s global revenue results have yet to come out, however the Times Online is reporting lower UK revenues for the past fiscal year. This widens the gap between GT and Big 4 and possibly jeopardizes any hope of the ‘Global Six’ moniker making it into the mainstream.
This despite their ambitious efforts:
Two years ago, Grant Thornton unveiled ambitious plans to increase revenue to £500 million. It had just acquired RSM Robson Rhodes and appeared set for rapid growth. There was talk that it could close the distance on Ernst & Young and break the Big Four’s lock on blue-chip audit and advisory work.
This, as the Times notes, appears to be only a pipe dream now. They dish a little gossip about GT merging with E&Y which was de-nied pretty adamantly by the UK CEO, ‘That’s absolutely not true and I’ve no idea where it comes from.’
We really wish we could take credit for starting that rumor but alas, we can’t. Furthermore, it wouldn’t be the same if GT had to merge with someone. It is, however, worth speculating if any type of semi-mega merger would even be possible. We touched on this topic some time ago but that was for sport so we’re asking for serious speculation now.
If you’ve heard merger talk at any of your firms discuss — or just wonder aloud about which firms would/could/should get together — in the comments and feel free to opine on GT’s latest efforts in the Global Six campaign.
Grant Thornton slips further behind the Big Four [Times Online]
Oh, and they finally released their global revenue numbers.
Deloitte ended the suspense today, issuing their global revenues for fiscal year 2009 and issuing their “annual review”. For the past couple of months, we were speculating about the holdup since they have historically been issued much earlier.
Most of the comments at that time were taking the under on the revenues and they were right, as Deloitte came in at $26.1 billion. This was down 4.9% but the firm kindly reminds everyone that in local currency, there was actually growth of 1%, thankyouverymuch.
This, despite all the charts on Deloitte’s website showing the drop of 4.9%. Jim Quigley, Global CEO, and going with the local currency figures:
“Achieving positive growth in this exceptionally difficult economic environment was the result of close attention to the needs of clients and a strong commitment to professional excellence by our member firm professionals. Despite the tough economy, we remain focused on our vision to be the standard of excellence and will continue to invest in pursuit of this vision”
In addition to JQ’s assessment, an explanation of revenues by functional area continue to refer to growth while the chart shows decreases in revenues when compared to the prior fiscal year:
Consulting was the fastest growing function at 7.3 percent. Reflecting the challenging economy, both audit and tax were relatively flat against the prior year. Financial advisory services decreased by 6.1 percent from the prior year, primarily due to substantially decreased merger and acquisition activity.
On the chart, consulting was shown to only grow 2%, tax decreased by 5.5%, audit by 6.4%, and financial advisory by 13.8%. So, yeah, a little confusing. Not to mention that all of the charts present this information in what appears to be Enron Beezlebub.
Deloitte presents a whole bunch of additional information that is much larger, including how awesome the firm’s social network presence is:
• Over 75,000 members on Linked In
• Over 11,000 fans of their Facebook page
• Over 2,000 followers on their Twitter feed
And since they knew you were wondering, Deloitte uses 2.59 MWh of electricity per person, which amounts to carbon emissions of 1.31 Mt CO2 per person. Again, since this information is in much larger font, we’ll go out on a limb and assume that it positive news.
Seems like the typical spin, so we’ll take it for what it’s worth. Discuss your thoughts on Deloitte’s numbers and what it’s Facebook status might be in the comments.
The spin continues in accounting firm earnings season, this time courtesy of P. Dubya. The Firm reported global revenues of $26.2 billion, according to today’s press release. This was down from fiscal year 2008 by approximately $2 billion from $28.2 billion in global revenues when adjusted for foreign exchange fluctuations.
Assurance services increased slightly, rising 4.8% while tax and advisory revenues both declined 7.5% and 11.4%, again, when considering the foreign exchange fluctuations.
North America’s revenues held up well, only dropping 3.2% ($9.3b to $9.0b) while Western Europe, PwC’s largest region in terms of revenue, had a 11.6% drop in revenues. The drop for this region was primarily due to the strength of the U.S. Dollar.
Denny Nally remains stoic despite
Satyam the challenges out there:
“The past 12 months have been challenging for our network, with most PwC member firms facing tough economic conditions. While PwC’s results for FY 2009 are not as good as we would have liked, they have held up well in the circumstances,” said PwC Global Chairman Dennis M. Nally. “In addition the combination of first rate customer service and very competitive pricing has allowed us to increase our market share in many of our markets around the world.
“The ability of so many PwC member firms to successfully sustain their business and their people through this difficult period provides us with a strong platform from which to serve clients in the recovery and to continue to invest in our own growth. While we cut our costs substantially, the PwC network also hired about 30,000 new people and increased its total workforce to more than 163,000 demonstrating a commitment to attracting the right people to serve clients around the world.”
Data for number of employees in fiscal year 2009 isn’t up yet on the global website but we’ve got no reason to not believe Denny when he says that they’re attracting the right people and getting rid of people that cost too much.
Discuss the revenue results and Denny’s vision of the ‘PwC Experience’, which is probably nothing like an acid flashback, for the future in the comments.
*PwC just wants everyone to know that there’s this thing called PricewaterhouseCoopers International Limited (PWCIL) that doesn’t provide services to clients and doesn’t act as an agent for the member firms. PWCIL is NOT LIABLE for anything that these member firms f*ck up because that’s just ridiculous. If they screw the pooch, they are TOTALLY ON THEIR OWN. Don’t come crying to us about an audit failure because we will deny ’til we die. This has nothing to do with Satyam, btw. It doesn’t. We swear.
The U.S. numbers are out, $10.7 billion, according to Deloitte’s U.S. website but the global page still only has the fiscal year ’08 numbers. The U.S. numbers are essentially flat from fiscal year ’08 revenue of approximately $11 billion.
We don’t really know what the problem is but we understand that math is hard sometimes so we’ll just wait patiently until the global numbers come out. God knows we’d have pandemonium if Deloitte was a SEC registrant filing the 10-K but hey, that’s one big advantage to a private company: We’ll report our revenue when we’re damn good and ready so you can all piss off.
Fine. We can wait.
In the meantime, some interesting data that is presented on the U.S. page so far includes:
• “Staff” dropping 1,490 while “Partners” went up 14 from FY ’08 to FY ’09
• Two offices were either closed or consolidated as the number went from 92 to 90
• Total number of CPA’s went up over
3200 from approximately 8,700 to just under 8,900
So at first glance, it appears that Big D had a similar ho-hum year to E&Y but we’ll withhold final judgment until the global numbers come out. Feel free to speculate on the delay of the global numbers or if you dare to eat donuts that look like a Smurf/Braveheart reenactment occurred on them.
Hyperbole Earnings season begins, Big 4 style, as E&Y has reported its global revenues of $21.4 billion for its 2009 fiscal year.
The Americas saw a drop in revenue of 5.5% to $8.6 billion and all other areas saw drops as well except for in Japan where E&Y made everything up with a 20% increase. In USD, this was a 6.8% drop in revenues from the prior year with revenue of $23 bil.
More, after the jump
Transaction Advisory Services saw the biggest drop in revenues (14.8%), followed by Assurance (6.3%).
The Americas region also saw the largest drop in people, approximately 3,000 less than fiscal year 2008, a drop of 4.5%. Globally, the firm’s headcount was essentially flat with Japan, again, showing the largest increase of 12.1%.
Ernstiverse Global CEO and Chairman (not to mention Head Global Accounting Standards Cheerleader), Jim Turley:
“I’m extremely proud of how our people adapted to this challenging year, and how they’ve worked so well with our clients to help them through these difficult times,” said James S. Turley, Global Chairman and CEO of Ernst & Young. “Flat revenues certainly don’t tell the whole story of this year, as we continued our investments in people and in building our markets, while helping our clients with the unusual and difficult issues they faced. FY09 will be remembered more for these activities than for top-line results.”
So we’re curious, Ernsters. How will you remember FY09? Will you remember ‘investments in people and building the markets’ rather than the ‘top-line results’? Discuss in the comments.
Ernst & Young reports fiscal year 2009 global revenues of US$21.4 billion [E&Y Press Release]
Since flat is the new up or whatever the hell people are saying these days, we’ll go so far to say that PwC continues to kick ass in the UK. Their revenue increased 0.5%, to to £2.25 billion, for the latest fiscal year. Advisory revenues managed to drag the audit and tax business out of the negative as the advisory revenue increased 5% while audit and tax dropped 1% and 4%.
BFD. Standard boilerplate statements accompany these numbers. Tough economy. Challenges. Hard work. Whatever. Partners still seem to be doing ok, as per partner profit was £777,000, although that’s down 3%, according to Accountancy Age.
More, after the jump
Fine but what we’ll kindly remind you of is that the firms in the U.S. don’t have to issue these fancy-schmancy annual reports with all the gory details. If they exist, we’ve never seen one.
Wouldn’t it be nice if the U.S. firms were required to put out thousands of copies of reports with plenty of pictures of happy employees, oh, and squeeze in some financial statements? One more explanation from Dr. Phil or Jimmy Turley about the awesome job you’re all doing wouldn’t hurt either.
Maybe you get enough of that already but isn’t knowing how much potential liability the firm has relevant to everyone that is stakeholder in the firm? Or what is being spent on magic 8 balls? The Brits don’t seem to have any problem putting out there. Just a thought.
PWC_Annual report 2009.pdf