Renewed positive performance
BDO once again increased revenue in the past fiscal year. Revenue increased by 3.3 percent on the prior year to CHF 211.5 million.
Revenue in Audit increased by 2.6 percent to CHF 72.3 million in 2018. This above-average growth is attributable to some major engagement wins, despite the cut-throat competition in our sector and the additional challenges that come with tightening audit requirements, growing expectations and cost pressure. Specialised systems like data analytics and the use of bot technology will help make audits even more efficient and effective in the future.
Business Services & Outsourcing
Business Services & Outsourcing saw growth of 1.7 percent to CHF 66.7 million. We have been using digital platforms to optimise collaboration with clients and will continue along this route. Our initial experience with chat bots will also help us further develop processes for interacting with our clients. Personal advice remains an important component in the client relationship, of course.
Tax & Legal
Tax & Legal enjoyed a 10.4 percent increase in revenue to CHF 25.6 million. In a market that continues to develop quickly, it's important to provide a structure that ideally supports knowledge transfer between our tax and legal experts. We are using new technology that empowers them to exchange experience and skills in a more targeted way in future. We will continue to observe international developments in tax and law closely so that we can anticipate changes in national laws at an early stage.
With growth from Abacus of 11.1 percent to CHF 11.2 million, revenue developed positively once again. Abacus also gained numerous, well-known clients, driven by stronger market demand for digital solutions - especially in the areas of Human Resources and Time Management. Abacus faces significant challenges in recruiting new ERP specialists in a labour market shaped by scarcity.
The financial sector is transforming in response to the financial crisis as well as digitalisation and the disruptive innovation that ensues. Against this background, Financial Services managed to increase revenue by 1.6 percent to CHF 17.2 million. Contributory growth factors were blockchain - whose potential is emerging more and more - as well as fintech developments and regulatory change, which stimulated demand for advisory services in 2018.
Advisory grew 0.5 percent in the past year. Services around current topics like blockchain and cyber security are now well established and BDO has secured itself a good market position as skilled adviser.