Ernst & Young (EY), a major player in assurance, tax, transaction and advisory services, recorded combined global revenues of $27.4 billion for its financial year ended June 30, 2014, a 6.8 percent increase over FY13 in local-currency terms.
All of EY’s service lines continued to grow in FY14: Advisory grew 14.4 percent; Transaction Advisory Services grew 6.5 percent; Assurance grew 4.5 percent, and Tax grew 4.3 percent.
Across EY’s geographic areas, the Americas enjoyed an increase of 9.1 percen on FY13. All other areas – Europe, Middle East, India and Africa (EMEIA), Japan and Asia-Pacific – posted growth above 5 percent in local currency. EMEIA was buoyed by a 16.5 percent increase in India revenues.
Despite weakening economic conditions in some regions, Asia-Pacific benefited from 6.8 percent revenue growth in Greater China.
EY’s emerging market practices grew by 8.7 percent overall, despite tough economic conditions and a slowdown in a number of key emerging market economies. This compares with 12 percent last year.
Mark Weinberger, EY’s global chairman/CEO, says: “I am very proud of our people’s efforts, which resulted in another strong year of growth for EY. This follows our market-leading performance last year. This financial year began with the launch of the new EY brand under Vision 2020 – our plan to be the leading professional services organisation by 2020. It finished with a set of accomplishments and results that show us moving from strength to strength.
“Emerging markets will continue to drive economic growth for the foreseeable future. By 2020, we’re predicting about 30 percent of our revenue will be from emerging markets and we have earmarked $1.5 billion for investment to support that growth.”
EY’s fastest growing sector practices were Life Sciences and Government, and Public Sector, both of which saw double-digit revenue increases.
“Our success is about much more than our financial results, it’s also about our people and investments, which allow us to deliver exceptional, high-quality services all over the world,” he says.
This year, EY’s headcount grew to 190,000 people globally, an all-time high. For the second year in a row, EY has been voted the world’s most attractive professional services employer in the Universum World’s Most Attractive Employer poll of business students from top academic institutions in key markets globally. In the poll, EY is also the second most attractive employer of all businesses worldwide.
This year, EY hired 60,000 people around the world, and invested half a billion US dollars on training to give its people the skills they need to deliver exceptional service for its clients.
Strong performance and confidence in the future led to 675 partner promotions. Along with 324 direct-admit partners, this was EY’s largest partner intake ever, with the largest number joining its Assurance practice. The new intake also is the most diverse ever, with a quarter of new partners from emerging markets, a quarter who have had mobility assignments outside of their native country, and 26 percent of them women, reflecting the importance placed on diverse, global experience in a world of increasing cross-border complexity.
Iheanyi Nwachukwu
