Deloitte announces record revenue of US$43.2 billion
Deloitte today reported aggregate member firm revenue of US$43.2 billion for the fiscal year ended 31 May 2018 (FY2018). This is an 11.3 percent revenue increase of US$4.4 billion.
“FY2018 was exceptional for Deloitte as we continued to deliver a measurable impact for clients, our people, and society. These results reflect Deloitte’s unrelenting commitment to serving clients with quality and distinction while embracing important public-interest responsibilities,” says Punit Renjen, Deloitte Global CEO. “Over the past year, we have increased strategic investments in the capabilities and services most sought-after by clients in the fastest-growing markets in the world. We also have expanded our efforts and investments to drive audit quality and innovation while achieving strong financial results.”
Transition to Fourth Industrial Revolution (Industry 4.0) delivers growth across all businesses, industries and regions
Deloitte’s global strategy and multidisciplinary business model continued to deliver successes in FY2018. All five practice areas—Audit & Assurance, Consulting, Financial Advisory, Risk Advisory, and Tax & Legal—grew during this time.
Among the industries driving Deloitte’s growth in FY2018 were Technology, Media & Telecommunications, and Financial Services; each grew revenue more than 12 percent on a US-dollar basis. Consumer and Industrial Products was the top contributor with US$1.3 billion revenue gained from FY2017 to FY2018.
Overall, Europe, Middle East, and Africa (EMEA) grew fastest among the regions with a USD revenue growth rate of 15.9 percent, followed by Asia Pacific at 13.3 percent, and the Americas at 8.0 percent.
- Audit & Assurance experienced growth of 7.7 percent. Amid changing regulations and disruptive technologies, Audit & Assurance expanded services that provide greater value and insights while fulfilling its commitment to the public interest. Over the past five years Deloitte has advanced audit quality with more than US$1 billion in investments globally. Among many initiatives in audit innovation is Deloitte Omnia, a cloud-based, next-generation artificial intelligence platform that adds to a market-leading global solutions portfolio. Deloitte continues to be recognized globally for leadership in audit quality, and for insights based on analytics and artificial intelligence.
- Consulting revenue grew fastest at 15.7 percent, with double-digit growth in each core capability area: Technology, Strategy & Operations, and Human Capital. This extends more than 10 years of double-digit growth. Consulting focused on delivering digital-enabled business transformation by integrating strategy, people, and technology to help clients navigate the challenges and opportunities of Industry 4.0. Consulting developed cloud-based, agile, data-driven products and solutions through strategic alliances with leading technology companies.
- Financial Advisory achieved 8.0 percent revenue growth, providing services crucial to many iconic and transformative M&A deals, and deploying new offerings and client initiatives. End-to-end M&A services continued to support major global transactions, while Financial Advisory’s Forensic practice supported clients in some of the year’s biggest and most complex disputes and investigations by leveraging analytics, digital tools, and digital delivery mechanisms.
- Risk Advisory had the second-highest revenue growth at 12.0 percent, fueled largely by growth in Cyber, Financial, and Operational Risk. Risk Advisory completed six acquisitions in critical growth areas such as corporate social responsibility, cybersecurity, risk sensing and analytics, and regulatory compliance and strategy. Risk Advisory also launched new cross-industry offerings in GDPR, breach notification, and digital risk. It introduced offerings for life sciences clients in IDMP and Medtech. Risk Advisory has been at the forefront in supporting clients adapting to geopolitical changes—in particular the impacts of Brexit.
- Tax & Legal saw 8.7 percent revenue growth driven by the needs of clients who face an increasingly complex landscape of tax and legal requirements everywhere they operate. Tax & Legal leveraged its strength in delivering technology-enabled global solutions to assist clients who must comply with evolving tax, legal, and employee mobility and immigration policies as they pursue strategic opportunities throughout the world.
Building a diverse, inclusive, agile workforce to meet the needs of tomorrow
In FY2018, Deloitte increased its workforce to approximately 286,000 professionals, an 8.4 percent increase. Growth occurred across all regions and practice areas, with more than 77,000 professionals hired. Among the regions, growth was led by Asia Pacific at 11.6 percent, and for services it was led by Consulting at 14.7 percent.
Additionally, in FY2018 Deloitte elevated 676 professionals to partner, a 19 percent increase from FY2017. Globally, 174 of these partners are women. Geographically, Asia-Pacific saw the largest share, with 242 professionals elevated to partner, representing a nearly 30 percent increase over last year. The Americas elevated 238 new partners and the Europe, Middle East, and Africa region (EMEA) elevated 196.
Deloitte continues to build a diverse, inclusive, agile workforce that is deeply skilled and ready for Industry 4.0. How and where work is done is changing, and Deloitte is responding by providing its people with exceptional professional experiences, including new approaches to connectivity, learning and development, and advancement.
Deloitte’s dedication to attracting, retaining and developing the very best global leaders, at all levels across the organization, is illustrated by its investment in its network of Deloitte University (DU) centers around the world. Through DU, Deloitte professionals advance their careers and participate in leadership development programs in a world-class learning environment that inspires them to be their best.
In FY2018, Deloitte doubled down on its talent investment and increased its impact by delivering the DU experience to more than 90,000 professionals and opening Deloitte’s seventh DU location, in Mexico City.
New mindset for societal impact
Addressing the complex challenges society faces today has become an imperative for business, and one that requires a new mindset for action. Deloitte embraces this opportunity—through its client work and hands-on community activities, and by sharing insights.
Deloitte’s ambition is to create pathways for people to fulfill their aspirations and find meaningful work in the new economy. The WorldClass societal-impact initiative expands access to education and career-building opportunities for those affected by Industry 4.0. The goal is to impact 50 million futures by 2030.
In FY2018 alone, major initiatives included: award-winning work showcasing the social and economic value of the Great Barrier Reef in Australia; cooperating with the Refugee Studies Center at the University of Oxford on a cross-border initiative to realize the economic potential of refugees living in Europe; and serving as the lead innovation partner for UNLEASH 2018, a global initiative inspiring and supporting the next generation of leaders as they develop solutions to some of the most vexing problems facing the world today.
“At the core of Deloitte’s business model is the fundamental belief that working with a sense of purpose and serving with quality and distinction make a positive impact on our clients, our people, and our communities. It is through our work that we contribute to building a more equitable and sustainable world,” says Renjen.
Recognizing the impact Deloitte is making in preparing its people and its clients for the technological disruption of the Fourth Industrial Revolution, Fortunerecently named Deloitte to its “Change the World” list. The annual ranking recognizes top companies who are making measurable progress addressing important societal problems.
To learn more about Deloitte’s societal impact, please read Deloitte’s 2018 Global Report.
Note: All growth rates in this press release are in USD unless otherwise specified.