EY reports record global revenues in 2016 – up by 9%
LONDON, October 6, 2016
EY today announces combined global revenues of US$29.6b for its financial year ended 30 June 2016. Overall, financial year (FY) 2016 revenue grew by 9% in local currency (versus FY15). Since the launch of its Vision 2020 plan in 2013, EY has recorded a strong 9.2% compound annual growth rate.
All of EY’s service lines delivered solid growth in FY16: Assurance grew 4.8%; Advisory 13.1%; Tax 9.6% and Transaction Advisory Services (TAS) 14.2%.
Mark Weinberger, EY Global Chairman and CEO, says: “These solid global results have been achieved in a difficult business environment. We are seeing continued global economic headwinds including geopolitical uncertainties, divergent monetary policy and turbulent emerging markets. Businesses are facing unprecedented disruption in their business models due to the pace and scale of technological innovation. Our sustained, strong growth rate over the past several years is the result of the quality and value our people are bringing to the market. Significant investment in our people and new technologies have allowed us to respond to the dynamic environment. There is still more work to do as we focus on helping businesses solve their toughest challenges.”
Bringing value to the market
EY distils everything it does down to a single, unified purpose: building a better working world. The global organization is helping digital pioneers fight data piracy, guiding governments through cash-flow crises, unlocking new medical treatments with data analytics and undertaking high-quality audits to build trust and confidence in the capital markets. Essentially, EY is working with businesses, entrepreneurs and governments around the world to solve their most pressing challenges and to help them take advantage of emerging opportunities.
Innovation and technology are rapidly disrupting businesses and entire industries. As part of Vision 2020, EY has a holistic approach to digital transformation and innovation, which is embedded across all its member firms, service lines and sectors.
As part of its focus on innovation, EY member firms made 26 strategic acquisitions in FY16, which will bring expanded professional skills and capabilities to the market. Alliances, including seven new agreements signed in FY16, are also playing an important role in helping the global organization bring preferential access to products and skills to the market. And the EY global innovation team, launched in FY16, is assisting in bringing leading-edge robotics and artificial intelligence to businesses. EY also continues its US$450m investment program in innovations in audit quality, the foundation of investor confidence.
Carmine Di Sibio, EY Global Managing Partner – Client Service, says: “At EY we’re embracing the change and disruption happening in the world today and see great opportunities for businesses to embrace transformational change. These opportunities are driving our focus on innovation, leading-edge technology, digital and alliances to ultimately bring the latest thinking and technology to our clients.”
Continued growth across all geographies, key industries and markets
Revenue increased across all four of EY’s geographic areas: the Americas 9.7%; Europe, Middle East, India and Africa (EMEIA) 7.5%; Asia-Pacific 12.5% and Japan 6.4%.
The US led developed markets growth, recording another strong year with US$12.2b in revenue, a 9.3% increase over FY15. Revenue in the US was driven by double-digit growth across its Tax, Transaction Advisory Services and Advisory service lines, combined with several major audit engagement wins. Elsewhere in developed markets, the UK achieved strong growth, led largely by its Assurance and Tax businesses. EY also saw strong growth across its member firms in Australia, France, Italy and Japan.