Allen & Overy (A&O) is the first magic circle firm to show its hand in the 2009-10 financial round, posting a 10% increase in average profits per equity partner (PEP) while turnover decreased slightly.

Turnover at the City firm fell by 4% to £1.05bn over the financial year, having stood at £1.09bn the previous year. Meanwhile, PEP rose to £1.1m from £1m last year, boosted in part on the back of a 5% decrease in average equity partner numbers.

The equity partnership had an average of 355 partners throughout 2009-10, down from 372 the previous year.

The firm said its revenues were boosted by its emerging markets practice. It added that activity levels had picked up in most of its European network as well as in its New York office. In total, the firm's international practice outside of the UK represented 60% of revenues.

The news comes as A&O becomes the first magic circle firm to open in Indonesia through the launch today (1 July) of an association with new Jakarta practice Daniel Ginting Law Firm.

The outpost marks A&O's 36th office and follows the addition of three new international offices during the last financial year including its Australia launch – which saw it add offices in Sydney and Perth – and its February launch in Qatar.

Managing partner Wim Dejonghe commented: "We have made strategic choices to secure future growth, and in doing so have built resilience into our business, enhanced our global reach and diversified our practice area mix."

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