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Revenues at Deloitte drop in the slump

PROFESSIONAL services group Deloitte Touche Tohmatsu saw its full-year global revenues drop five per cent to $26.1bn (&pound;16bn) yesterday, as accountants worldwide feel the pinch from a dearth in major mergers and acquisitions. <br /><br />Deloitte&rsquo;s chief executive Jim Quigley said the performance of the group, one of the big four accountancy firms, was satisfactory given the &ldquo;exceptionally difficult environment&rdquo;.<br /><br />He added that revenue for the year to 31 May grew by one per cent when currency variations were taken into account, but would not comment on Deloitte&rsquo;s profitability. <br /><br />Revenue at the group performed slightly better than that of rivals PriceWaterhouseCoopers (PwC) and Ernst &amp; Young. Both saw a seven per cent slump in their global fees for the year, reporting $26.2bn and $21.4bn respectively. <br /><br />The remaining accountancy major, KPMG, has yet to put out its financial results for the year. <br /><br />Despite the downturn, Deloitte was paid &pound;11.9bn in fees for its auditing of major accounts like General Motors (GM) &ndash; which came out of administration earlier this year &ndash; and Microsoft, which is weathering the financial crisis. <br /><br />The fees are down 6.4 per cent year-on-year.<br /><br />Deloitte also took a hit on its work advising big companies and governments on matters related to tax, with fees falling 5.5 per cent to $5.7bn. <br /><br />Its management consulting arm managed to defy the crunch, however, reporting a two per cent rise in fees to $6.5bn.<br /><br />The group added that it performed strongly in emerging markets, with its Asian, Latin American and Middle Eastern operations recording double-digit growth in their respective local currencies.