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 currency movements.
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 income.
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.