BDO International outperformed its
Big Four rivals, posting combined fee income of €3.71 billion
($5.03 billion) in the year to 30 September, a decrease of just
over 2 percent in US dollar terms.
The result represents an increase of almost 2
percent in euro terms compared to 2008. The network said it showed
an increase of about 5 percent when excluding the effect of all
BDO’s results compare favourably to Deloitte’s
revenue drop of almost 5 percent, PricewaterhouseCoopers’ 7 percent
decline, KPMG’s 11 percent drop and Ernst & Young’s 13 percent
fall, which were all reported in US dollars.
BDO International chief executive Jeremy
Newman believes the results pay homage to the network’s resilience
during difficult trading conditions.
“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,” Newman said.
“It is particularly pleasing that, at a time
when many other accounting networks are showing a decline in fee
income, our underlying revenues, excluding the effect of currency
movements, have increased by almost 5 percent. This is a result of
growth in many of our member firms as well as our new firms in
Cambodia, Georgia and India, and our considerably stronger presence
in China. “
BDO International’s revenue included the
exclusive members of its US and Spanish member firms’ alliances.
The revenues of these alliance members are not made public.
The firm reported member firms in its European
and North American regions have been hardest hit by the economic
crisis, with both showing decreases in combined fee income.
However, the combined fee income of the
Asia-Pacific, Middle East and Sub-Saharan Africa regions each
showed an increase of about 20 percent in euro terms.
Revenues from advisory services were most
affected by the global economic crisis and fell by 10 percent,
accounting for 20 percent of total combined fee income.
Audit and accounting revenue grew by almost 5
percent and now make up about 60 percent of total combined fee
Tax revenues fell by almost 4 percent and
account for 19 percent of combined fee income.
BDO’s mid-tier rival Grant Thornton is
expected to release global results this month.
At the start of 2010, the BDO network will
have member firms in 115 countries, including recent additions in
Africa and the Caribbean.