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Deloitte’s global revenue rose 15% last year as new work advising companies on their environmental impact and auditing ESG data helped offset a sharp slowdown in merger and acquisition advice.
The company extended its lead as the biggest of the four professional services giants, with $64.9 billion in revenue for the year ended May 31, data released Thursday showed.
They also show that the hiring spree across the industry hasn’t completely disappeared, even as companies including Deloitte have laid off thousands of workers in areas where their businesses have underperformed. Over the past 12 months, Deloitte’s global headcount has increased by 11 percent to 457,000.
Deloitte said that while the rapid pace of tech consulting has slowed in the wake of the coronavirus pandemic, businesses are still upgrading their IT and digital services and have also started selling artificial intelligence and metaverse services. The company’s largest business, consulting, continued to be the fastest-growing segment, with revenue in local currencies up 19.1% to $29.6 billion.
Elsewhere, the results also show the ability of professional services firms to replace slowing services with new ones.
In local currency terms, the revenue growth rate of the audit and assurance business accelerated from the previous year to reach 13.8%. The $12.3 billion in corporate revenue was driven by environmental, social and governance-related work, such as preparing companies for new data reporting standards and auditing their ESG data. Its risk consulting business, which includes cybersecurity and climate change consulting, rose 17.5 percent to $7.8 billion.
In local currency terms, Deloitte’s financial advisory business revenue rose just 4.7 percent to $5.1 billion, a sharp slowdown from more than 20 percent a year earlier. Corporate deal volumes have been sluggish this year, but the firm said restructuring efforts have made up some of the slack, especially because of the turmoil in the U.S. and European banking sectors this spring.
Deloitte is the first of the Big Four accounting firms to release detailed figures for fiscal 2023 revenue growth.
EY Chief Executive Carmine Di Sibio has previously revealed that the firm’s global revenue rose just over 14% to just under $50 billion in the fiscal year ended June 30. More comprehensive figures are expected next week, followed by PwC next month and KPMG later in the year.
As private partnerships, these companies do not have to report profit figures in most jurisdictions.
Deloitte said the Americas region had the strongest revenue growth, up 17.5 percent in local currency, followed by Europe, the Middle East and Africa, up 12.6 percent, with Asia-Pacific lagging behind.
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