THE 2009 BIG FOUR FIRMS PERFORMANCE ANALYSIS

THE 2009 BIG FOUR FIRMS PERFORMANCE ANALYSIS








An Analysis Of The 2009 Financial Performance Of The World’s Largest Accounting Firms
By Big4.com
January 2010
The 2009 Big Four Firms Performance Analysis
January 2010
www.Big4.com

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THE 2009 BIG FOUR FIRMS PERFORMANCE ANALYSIS



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.

The large fall in US dollar terms was also driven by the appreciating US dollar during the period.
Despite this, the combined revenues of the Big Four firms was an astonishing $94 billion, with
PwC retaining its leadership position as the largest accounting firm on the planet by narrowly
beating Deloitte.

The Americas region represents about 40% of global revenues for the Big Four firms, but its
share has been falling over the years, due to the preponderance of mature markets. Contrary
perhaps to common belief, Europe, Middle East and Africa has the highest percentage of total
revenues for the Big Four firms at 45%. Asia Pacific, while being the smallest region at 15% of
revenues, has posted the highest growth rates, owing to the strong upswing in many emerging
Asian economies.

The Audit service line accounts for almost 50% of total revenues and has been generally holding
at this level across the years. Tax services experienced strong growth in 2006 to 2008, in sync
with global merger and acquisition transactions activity. Advisory services has been the fastest
growing service line as the firms extend their services into risk management and business
consulting.

The Big Four firms cumulatively employ more than 600,000 professionals globally, with a total of
34,000 partners overseeing a steep pyramid of about 470,000 professionals.

Despite the world’s worst financial crisis for over 70 years, the Big Four firms turned in quite a
creditable performance, with revenues falling only by a small percentage in local currency terms.
For 2010 and beyond, we will likely see a return back to revenue growth, though it is debatable
whether a string of double-digit growth over multiple years will be seen for the next few years.
2010 will also be an interesting year to watch for any changes in Big Four rankings, with a close
race between Deloitte and PricewaterhouseCoopers for the leadership position.


The 2009 Big Four Firms Performance Analysis
January 2010
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REVENUE PERFORMANCE
years which spanned different calendar

months. Deloitte’s fiscal 2009 ended on May
2009 Reverses Multi-year Revenue
31, 2009, E&Y and PwC’s fiscal 2009 ended
Growth Trend
on June 30, 2009 and KPMG was the last to

close out the fiscal year on September 30,
2009 was a difficult year overall for the Big
2009. In 2009, this small difference in fiscal
Four accounting firms: Deloitte, Ernst &
year-ends would have had a relatively
Young (E&Y), KPMG and
higher impact, for example, KPMG’s fiscal
PricewaterhouseCoopers (PwC), as their
year 2009 coincided exactly with meltdown
financial performance was affected by tough
in financial markets as Lehman Brother
external conditions, slow global economic
collapsed in September 2008. Other Big
growth, cost-conscious clients and sluggish
Four firms had three to five fewer months of
merger and acquisition activity. After an
this negative impact.
extraordinary period of continuous revenue

growth from the early 2000s to 2008, mostly
Combined Revenue and Growth for All Four Firms
at a double-digit percentage rate, combined
revenue for the four firms in fiscal 2009 did
120
20%
100
15%
fall by 7% from fiscal 2008 in US dollar
80
10%
terms.
60
$B
5%

40
0%
20
-5%
Quite apart from operating considerations,
0
-10%
the large fall in US dollar terms was also
2004
2005
2006
2007
2008
2009
driven by the appreciating US dollar during
Combined Firm Revenues
the period. The decrease in local currency
Annual % Growth in Combined Revenues
terms was at a much lower level, ranging


from negative 3% to positive 1%.
Fluctuations in the US dollar also

contributed to the higher level of percentage

drops. The US dollar appreciated strongly
These large accounting firms posted
from mid-2008 to mid-2009 against a basket
some big numbers in 2009, their
of foreign currencies, after staying weak in
combined revenues was an eye-popping
the prior twelve months. This had an
$94 billion
unfavorable effect, as depreciating local

currencies, where the firms earned revenue,

were converted into US dollars, in which the
Despite the decrease in revenues, these
firms reported their annual results. In
large accounting firms posted some big
general, decreases expressed in US dollar
numbers in 2009, their combined revenues
terms were about 7% lower than decreases
was an eye-popping $94 billion, dropping
expressed in local currency terms.
from an all-time record level of over a $100

billion in 2008. Revenue decreases in US
dollar percentage terms also differed across

PricewaterhouseCoopers retained its
firms, ranging from negative 5% for Deloitte
first place as the largest accounting firm
to negative 7% each for Ernst & Young and
on the planet with revenues of $26.2
PricewaterhouseCoopers to negative 11%
billion, narrowly beating Deloitte
for KPMG. In local currency terms, revenue
decreases were more modest, from positive


1.0% for Deloitte, 0.2% for
PricewaterhouseCoopers retained its first
PricewaterhouseCoopers to negative 0.2%
place as the largest accounting firm on the
for Ernst & Young and negative 2.6% for
planet with revenues of $26.2 billion,
KPMG.
narrowly beating Deloitte, a very close

second with revenues of $26.1 billion. Ernst
The difference across firms was driven by
& Young took the third spot at $21.4 billion,
the intrinsic nature of the firm itself and
and KPMG maintained its position as the
varying compositions of service lines and
smallest of the Big Four firms at $20.1 billion
geographies and a small effect due to fiscal
The 2009 Big Four Firms Performance Analysis
January 2010
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of revenues. Deloitte proved to the most
Despite being auditors for the world’s public
resilient firm to the tough economy, with its
companies who are required to report
revenue falling only 4.9% in US dollar terms,
extensive details on their financials, the Big
while close rival PricewaterhouseCoopers’
Four firms provide only very high level
revenues decreased 7.1%. This enabled
financial information with minimum
Deloitte to close the gap against PwC in
commentary, with consequent impact on the
2008 to be at almost at par in 2009. In 2010,
depth of possible analysis in our study.
it will be interesting to see who will gain the

leadership spot, as a relatively stronger
Annual Revenue By Firm
performance by Deloitte could well edge it
28
past PwC.
26

24
22
20

$ B 18
In 2004, combined firm revenues were
16
14
only $60 billion, but by 2008, this had
12
2004
2005
2006
2007
2008
2009
moved up at a compounded annual
growth rate of 14% to exceed $100 billion
Deloitte
E&Y
KPMG
Pw C





The Big Four firms have had an astonishing

run up in total revenues over the last six

years. In 2004, combined firm revenues
2009 FIRM PERFORMANCE
were only $60 billion, but by 2008, this had

moved up at a compounded annual growth
We blogged on each firm’s 2009 financial
rate of 14% to exceed $100 billion. Some of
performance as they sequentially reported
this gain was from the collapse of Andersen,
on The Big Four Blog, and we encourage
as Andersen’s $10 billion or so of revenues
our readers to read those analyses to obtain
in 2002 was generally redistributed over the
a flavor of the timing and our immediate
remaining four firms. Beyond this, the global
response.
financial boom in the middle of the decade,

combined with assertive penetration into
Ernst & Young was the first to report its
emerging economies provided the engine for
2009 financials, and with Deloitte following
revenue increases.
(on a much delayed schedule) it became

clear that the year was turning out to be
In Billions of USD
2007
2008
2009
quite challenging on the revenue line. PwC
followed suit, showing flat revenue growth
Deloitte
2
3.1

2
7.4
2
6.1
on a local currency basis. KPMG was the
E&Y
2
1.1

2
3.0
2
1.4
KPMG
1
9.8

2
2.7
2
0.1
last to report in December 2009, and its
PwC
2
5.1

2
8.2
2
6.2
revenues fell the most among all the four
Combined Firms
8
9.1
10

1.3
93.8
firms. Additional data points from the UK

member firms, where the Big Four firms
This positive trend rapidly reversed in 2009,
have to provide more detailed information,
the first time in six years, as economies all
proved that the pressure on the top line was
over the world came to an abrupt halt in mid-
also leading to lower bottom lines and
2008, with many countries going into
decreased profits per partner.
recessions, and ultimately affecting the

seemingly unstoppable growth in Big Four
firm revenues. Even with this drop in 2009,
the six year compounded annual growth rate
from 2004 to 2009 was 9%, a remarkable
achievement, given that these multi-billion
dollar enterprises had to grow their size by
nearly 60% from a high starting point by
either finding new revenue opportunities or
penetrating current clients.

The 2009 Big Four Firms Performance Analysis
January 2010
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---

2009 Performance at Big Four Firms
In terms of service lines, Assurance grew
30
0%
2.0% in local currency terms to $13.1 billion,
25
-2%
but in terms of US dollars, revenues actually
20
-4%
fell by 4.8% from $13.8 billion in 2008. PwC
15
$B
-6%
%
attributed this to market-leading strength of
10
-8%
the business and its continued focus on
5
-10%
improved customer service and very
0
-12%
Deloitte
E&Y
KPMG
Pw C
competitive pricing. Tax services fell by
2009 Annual Revenue
2008 to 2009 Grow th %
0.3% in local currency terms to $6.9 billion,

but fell 7.5% in US dollar terms from $7.5

billion in 2008. Tax was impacted by the
In 2009, while revenues fell drastically in
worldwide decline in corporate deals and
developed markets, all firms generally noted
restructuring work. Advisory services fell by
that emerging markets were more resilient
2.9% in local currency terms to $6.1 billion,
against slowdowns, and revenues rose in
but fell 11.4% in US dollar terms from $6.9
many developing countries. The
billion in 2008. This service line was the
appreciating US dollar caused the
hardest hit by the global slowdown, as M&A
percentage drop in US dollars to exceed the
and IPOs dried up and private equity firms
more modest drops in local currency. In
slowed, while bankruptcy and restructuring
general the firms’ results met our
work provided some offset.
expectations, though KPMG’s sharp fall was

quite surprising. In addition, Ernst & Young
changed their method of reporting in 2009,

Revenues in the smaller regions of
choosing to report combined, rather than
Middle East & Africa and South & Central
consolidated revenues, which led to a lower
America also rose strongly in local
level of reported revenues.
currency terms, showing strong growth

in emerging markets

In general, the firms’ results met our


expectations, though KPMG’s sharp fall
In terms of geographies, Asia revenues rose
was quite surprising
about 4% to $3.7 billion in local currency

terms but falling about 5% in US dollar terms

from $4.0 billion in 2008. Revenues in the
A brief overview of 2009 results for each firm
smaller regions of Middle East & Africa (up
follows.
9.1%) and South & Central America (up

13.3%) also rose strongly in local currency

terms, showing strong growth in emerging

markets. In the developed world, revenues
in both Europe and North America declined,

and since these account for 85% of total

PwC revenues, they essentially drove the
PricewaterhouseCoopers’s FY 2009 global
results for the firm. Revenue growth was
revenues for the year ending June 30, 2009
high in a number of PwC member firms
was US$26.2 billion, a 7.1% decline from
around the world, with particularly good
the US$28.2 billion in FY 2008 in US dollar
results in Japan, Russia, Spain, Sweden
terms. However, on local currency terms FY
and Canada.
2009 revenues were actually higher than FY

2008 by a modest 0.2%. This performance

enabled PwC to remain the largest

accounting firm on the planet.





This performance enabled PwC to remain

the largest accounting firm on the planet



The 2009 Big Four Firms Performance Analysis
January 2010
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The Asia Pacific region had local
currency growth of 7.6% and was the

fastest-growing region for the fifth

consecutive year
Deloitte Touche Tohmatsu, the global firm,

reported fiscal 2009 revenues for the year

ending May 31, 2009 of US$26.1 billion, an
Despite this remarkable performance,
increase in local currency terms of 1%, but a
Deloitte was unable to beat PwC to be the
drop of 4.9% in US dollar terms from 2008.
largest Big Four firm in the world. Its 2009

revenues of $26.1 billion were behind PwC’s
By service line, Consulting (Advisory) was
2009 revenues of $26.2 billion by only $100
the fastest grower at 7.3% in local currency
million or 0.4%. We had indicated in our
terms; and in US dollar terms, revenue
earlier analysis that a 4.5% decrease in
increased 2% from $6.3 billion in 2008 to
Deloitte’s revenues in US dollar terms would
$6.5 billion in 2009. Audit was relatively flat
make it the largest among the Big Four firms.
against 2008 in local currency terms; in US
However, Deloitte’s overall revenues
dollar terms, Audit shrank by 6.4% from
actually dropped by 4.9% from 2008 to 2009,
$12.7 billion to $11.9 billion. Tax was also
narrowing, but not completely closing the
relatively flat against 2008 in local currency
gap against PwC. By showing remarkable
terms; in US dollar terms, Tax revenues
performance in 2009, arguably one of the
decreased by 5.5% from $6.0 billion to $5.7
toughest environments in recent memory,
billion. Financial Advisory Services revenue
Deloitte has shown that it is a strong
fell 6.1% in local currency terms, but in US
contender for the leadership position.
dollar terms, fell by 13.8% from $2.4 billion

in 2008 to $2.0 billion in 2009.



By service line, Consulting (Advisory)
was the fastest grower at 7.3% in local

currency terms; and in US dollar terms,

revenue increased 2% from $6.3 billion in
Ernst & Young’s combined worldwide 2009
2008 to $6.5 billion in 2009
revenues for the year ending 30 June 2009
were US$21.4 billion, decreasing a modest


0.2% in local currency terms from the
In terms of geography, Americas dropped
comparable period in FY 2008 of US$23.0
1.3% in local currency terms and 3.7% in US
billion in global revenues. In US dollar terms,
dollar terms from $12.9 billion in 2008 to
the revenue actually declined 6.8% from
$12.5 billion in 2009. Europe, Middle East
2008 to 2009.
and Africa rose 2% in local currency terms

but dropped 9.0% in US dollar terms from
Assurance Services with FY 2009 revenues
$11.3 billion in 2008 to $10.2 billion in 2009.
of $10.1 billion offset price pressure with
Asia Pacific grew 4.7% in US dollar terms
market-share gains, and revenues declined
from $3.2 billion in 2008 to $3.4 billion in
only 0.7% in local currency terms, but 6.3%
2009. The Asia Pacific region had local
in US dollar terms. Global Tax Services with
currency growth of 7.6% and was the
FY 2009 revenues of $5.8 billion was up
fastest-growing region for the fifth
1.8% in local currency terms due to
consecutive year. India’s revenues grew
increased tax enforcement, but dropped
29.9%, Australia grew 11.5% and Japan
5.2% in US dollar terms. Advisory Services
grew 11.3% in local currency terms.
with FY 2009 revenues of $3.6 billion was

up 1.5% in local currency terms due to
Africa, the Middle East, and Latin America
sustained demand for risk management and
and the Caribbean posted high growth rates
performance improvement, but dropped
of 21.3%, 15.6% and 13.7% respectively, in
6.0% from $3.8 billion in 2008 in US dollar
local currency.
terms.


The 2009 Big Four Firms Performance Analysis
January 2010
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---

Transaction Advisory Services with FY 2009
billings to other member firms have been
revenues of $1.9 billion, had a 6.9%
eliminated from the financial information
decrease in local currency terms due to fall
presented here. This financial information
in M&A volumes, but revenues decreased a
represents combined not consolidated
large 14.8% in US dollar terms from $2.2
revenues, and includes expenses billed to
billion in 2008.
clients.”




Assurance Services with FY 2009

revenues of $10.1 billion offset price
pressure with market-share gains, and
revenues declined only 0.7% in local
currency terms, but 6.3% in US dollar

terms


KPMG reported 2009 combined revenues

for the fiscal year ending 30 September
Across E&Y’s five geographic areas, Japan
2009 of US$20.1 billion versus US$22.7
grew at 7.5% in local currency terms, due to
billion for the prior 2008 fiscal year. This was
the acquisition of 1,000 professionals from
an 11.4% decline in US dollars terms and a
accountancy firm Misuzu; and revenues
2.6% decline in local currency terms, which
increased 20% in US dollar terms. The
was the highest drop among all Big Four
Europe, Middle East, India and Africa
firms.
(EMEIA) area grew 1.8% in local currency

terms, but declined 9.7% in US dollar terms.
By service line, Audit 2009 revenues were
Oceania decreased 0.4% in local currency
$10.0 billion versus $10.7 billion in 2008,
terms, but declined a dramatic 15.9% in US
down 6.9% in US dollar terms but a 0.5%
dollar terms. The Far East decreased 2.7%
increase in local currency terms. In the
in local currency terms and 5.9% in US
global financial services industry, Audit
dollar terms. The Americas area decreased
services' revenues actually grew 7%.
3.2% in local currency terms, but 5.5% in US

dollar terms.
Tax services revenues in 2009 were $4.1

billion versus $4.7 billion in 2008, a 13.4%
There were some bright spots however, with
decrease in US dollar terms and a 4.3%
many of the emerging markets achieving
decrease in local currency terms. But certain
strong revenue growth, including the Middle
practices within Tax did very well: Transfer
East at 18.6%, India at 13.1% and Brazil at
Pricing grew 5.3%, Indirect Tax grew 8%
8.0%.
and International Executive Services grew

7.8%, all in local currency terms.


Ernst & Young made a key change to
Advisory services revenues of $6.1 billion in
their reporting of revenues in 2009,
2009 decreased versus $7.3 billion in 2008,
showing combined, not consolidated
by a large 16.6% in US dollars terms and
revenues
6.6% decline in local currency terms.

However, Advisory in China and the Middle

East posted double-digit growth.
Ernst & Young made a key change to their

reporting of revenues in 2009, electing to

show combined, not consolidated revenues
KPMG’s 2009 combined revenues for the
by eliminating intra-firm billings. E&Y
fiscal year ending 30 September 2009
restated its 2008 revenues down from $24.5
were US$20.1 billion versus US$22.7
billion as originally reported to $23.0 billion
billion for the prior 2008 fiscal year. This
reported as restated in 2009. The reason
was a 11.4% decline in US dollars terms
provided for this change was, “In line with
and a 2.6% decline in local currency
our globalization efforts to harmonize
terms, the largest among Big Four firms
policies across member firms, revenues for

2009 and 2008 related to member firm

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January 2010
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By geography, Americas Region had 2009

revenue of US$6.3 billion versus US$7.2
Annual Revenue Growth % By Geography
billion in 2008, decreasing 12% in US dollar
terms and 8.6% in local currency terms.
20%
Bright spots included Brazil with 5% revenue
10%
growth, Mexico with 8.2% growth,
Venezuela grew 22.9% and Chile's
0%
2005
2006
2007
2008
2009
revenues rose 22.7%, all in local currency
-10%
terms.
-20%

Annual % Grow th - Americas
Annual % Grow th - Europe
In Europe, Middle East and Africa, combined
Annual % Grow th - Asia
KPMG member firm 2009 revenues were


$10.7 billion versus $12.4 billion in 2008,
dropping 13.5% in U.S. dollars terms and

Contrary perhaps to common belief,
0.6% in local currency terms. Middle East
Europe, rather than the Americas region,
and South Asia was the fastest growing sub-
has the highest percentage of total
region in Europe; and KPMG in Africa had a
revenues for the Big Four firms
9.3% growth in local currency terms.
averaging 45%

In Asia Pacific, combined 2009 revenues of


$3.1 billion decreased 1.1% in US dollars

terms but grew a substantial 3.9% in local
The Americas
currency terms. Some countries posted

spectacular results: Korea had 19.4%
growth, Vietnam and Cambodia each had
17.5% growth, and Japan had 7.2% growth,
all in local currency terms. KPMG said that
Asia Pacific member firms are beginning to
see an increasing number of M&A
transactions especially in China and Korea.

Revenues in the BRIC countries as a group

grew 4.3%. Middle East and South Asia was

the fastest growing practice with a 25%
The Americas represent about 40% of global
growth rate. KPMG’s BRIC headcount
revenues, but its share has been falling over
increased by 11.5% this year, with BRIC
the years. From 2004 to 2009, there has
headcount nearly quadrupling in the past ten
been a noticeable drop of about 3% in the
years.
Americas region’s share of the total revenue

for all the firms. In 2005, 43% of combined
firm revenues were reported from the


Americas region, whereas in 2009, it had
REVENUE BY GEOGRAPHY
dropped to only 40% of total firm revenues.


The distribution of revenues by geography
There also appears to be large variation
shows some very interesting insights.
across firms in the amount of revenue from
Contrary perhaps to common belief, Europe
this geographic region as a percentage of
(including generally Europe, Middle East
their global revenues. For example, Deloitte
and Africa), rather than the Americas region
at the high end, sources 48% of its revenues
(including Canada, the US and South
from the Americas and KPMG at the low end
America), has the highest percentage of
has only 31% of its revenues from the
total revenues for the Big Four firms,
Americas. Ernst & Young and PwC each
averaging 45% of total worldwide revenues.
have about 40% of their total revenues from
Americas average about 40% and the Asia
the Americas, in line with the total firm
Pacific countries (including India, South Asia,
average.
China, North Asia and Australia) have the
remaining 15% of the revenue share.
The 2009 Big Four Firms Performance Analysis
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percentage 46% of total firm revenues came
Americas as % of Total Revenue by Firm
from Europe.
55%

50%

45%
Europe represent about 45% of global
%
40%
revenues, and as we see across the
35%
years, this total percentage has remained
30%
remarkably flat from 2004 to 2009
2004
2005
2006
2007
2008
2009

Deloitte
E&Y
KPMG
Pw C



As in Americas, each firm has a different
While Latin America, and particularly Brazil
percentage of European revenues as a
and Mexico have provided good growth
share of the total revenues. KPMG at the
opportunities for growth in recent years, the
high end sources 53% of its revenues from
predominance of the mature markets of USA
Europe (KPMG Europe being a key
and Canada with slower growth has
contributor) while Deloitte at the low end has
generally limited the expansion of Big Four
only 40% of its revenues from Europe, this
firms in the Americas region. The 3%
situation being a total polar opposite of the
revenue share loss has generally gone to
Americas. Ernst & Young and PwC each
Asia Pacific, where emerging markets such
have 45% of their total revenues from
as China, India, Korea and Vietnam have
Europe, in line with the total firm average.
grown at disproportionately higher rates.
Europe as % of Total Revenue by Firm

55%

From 2004 to 2009, there has been a
50%
noticeable drop of about 3% in the
45%
%
Americas region’s share of the total
40%
revenue for all the firms
35%

30%
2004
2005
2006
2007
2008
2009


Deloitte
E&Y
KPMG
Pw C

Europe
This diverse European region comprises

both of mature markets such as the United
Kingdom, France, Italy and Germany, as
well as fast growing Eastern European
nations - Poland, Russia, Czech Republic,
Hungary and Romania. The Big Four firms
have had spectacular growth in Eastern
Europe as these high growth economies
have matured into capitalistic markets,
requiring sophisticated audit, tax and


transaction services.
Europe, surprisingly, is the largest region by

revenue for all Big Four firms. The Big Four
The Big Four firms have had tremendous
firms typically combine Europe, comprising
growth in Russia in particular as part of their
the developed countries of Western Europe,
BRIC initiatives. Europe also comprises the
the up and coming markets of Eastern
rapidly rising countries of the Middle East –
Europe with Middle Eastern and African
including Dubai, Abu Dhabi, Kuwait, Saudi
nations for a giant EMEA region. Europe
Arabia and Israel; as also the larger
represents about 45% of global revenues,
economies of the African continent – South
and as we see across the years, this total
Africa, Egypt and Nigeria for example. In the
percentage has remained remarkably flat
Middle East and Africa, the Big Four firms
from 2004 to 2009. In 2004, 46% of
have capitalized on their historical small
combined firm revenues were reported from
presence and posted very high annual
the Europe region, and in 2009, the same
growth numbers for the last few years, albeit
from a smaller base.
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Asia Pacific



BRIC





The BRIC countries – Brazil, Russia, India
Asia Pacific, while being the smallest region,
and China – have been unquestionably the
has posted the highest growth rates of all
shining stars in the growth story in recent
regions. This diverse region comprises a
years. Though the firms do not report
few mature markets such as Japan and
individual country revenues, there is typically
Australia, but mainly covers fast growth
some commentary on the annual report on
emerging markets such as China, India,
the spectacular increases in these countries.
Vietnam, Korea and Singapore. The Asia

Pacific region has been in an economic
The BRIC countries – Brazil, Russia,
boom for most of this decade, and their
India and China – have been
demand for Big Four firm professional
unquestionably the shining stars in the
services have multiplied. All the firms have
growth story in recent years
grown at exceedingly high rates each year

since 2004, with the result that combined

revenues have doubled from $7 billion in
For example, Ernst & Young reported in
2004 to $14 billion in 2009.
2009 that revenues in India had increased

13% and in Brazil by 8%; and KPMG said

that their headcount in the BRIC countries
Asia represents about 15% of global
had nearly quadrupled in the past ten years.
revenues for all the firms, and as we see

across the years, this total percentage

has increased steadily from 2004 to 2009


REVENUE BY SERVICE LINE


Asia Pacific as % of Total Revenue by Firm
The Big Four firms offer a wide variety of
professional and financial services, with
20%
newer Advisory services adding to their
15%
more traditional and deep-rooted Audit
(Assurance) and Tax Services. Firms vary in
% 10%
their structure and definition of these broad
5%
service lines, typically though about half the
0%
revenues are sourced from Audit, and the
2004
2005
2006
2007
2008
2009
balance is shared between Tax and
Deloitte
E&Y
KPMG
Pw C

Advisory Services.


Asia represents about 15% of global
revenues for all the firms, and as we see
across the years, this total percentage has
increased steadily from 2004 to 2009. In
2004, 12% of combined firm revenues were
reported from Asia, and in 2009, it had
sharply increased to 15% of total firm
revenues. This share gain came at the
expense of the Americas region, which
correspondingly lost its share of the pie.
The 2009 Big Four Firms Performance Analysis
January 2010
www.Big4.com

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