As PwC sinks, Deloitte takes top spot with $2.85b income
Deloitte’s annual income jumped more than 14 per cent to $2.85 billion in the year to May and is on target to become the largest of the big four consulting firms this financial year thanks to the collapse in revenue at its once-dominant rival PwC.
Deloitte’s strong result, driven mainly by its powerhouse consulting arm, comes as sector leaders adjust to a political environment poisoned by PwC’s tax leaks scandal.
Deloitte CEO Adam Powick says the firm has booked a strong 2022-23. Louie Douvis
The scandal, which involved the firm using confidential government information to help clients sidestep new tax laws, has caused unprecedented scrutiny of the major consultancies’ operations.
Deloitte chief executive Adam Powick, who had a bruising encounter with the Senate committee examining consultants last Monday, said the firm’s 2022-23 performance was helped by strong sales in the first six months of the firm’s financial year.
“It was a year of two halves. The first half was strong, double-digit growth, but then we started to see the second half weakening,” he said. Services in particular demand included climate transition advice and reporting; digital, cyber and artificial intelligence services; and cost optimisation.
Deloitte’s consulting arm was the strongest performer, with revenue up 21 per cent in the year to $1.4 billion, followed by financial advisory (up 11 per cent to $393 million), risk advisory (up 10 per cent to $292 million), audit and assurance (up 9 per cent to $517 million) and tax and legal (up six per cent to $346 million).
The firm now has about 1000 partners and has grown staff numbers by 2000 to almost 14,000. This includes hiring 1400 graduates and about 3000 experienced hires during the 2022-23
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