-- Growth of 6.8% over FY2013 in local currency terms --
-- Growth across all service lines; emerging markets practices grow 8.7% --
-- Headcount at all-time high of 190,000 as EY ranked #1 world's most attractive professional services employer, number #2 employer overall --
-- Growth allows for continued investment in key markets, people and technology --
LONDON, Sept. 26, 2014 /PRNewswire/ -- EY today announced combined global revenues of US$27.4b for its financial year ended 30 June 2014, a 6.8% increase over FY13 in local-currency terms. Revenues grew 6.0% in US dollar terms.
All of EY's service lines continued to grow in FY14: Advisory grew 14.4%; Transaction Advisory Services grew 6.5%; Assurance grew 4.5%; and Tax grew 4.3%.
Mark Weinberger, EY's Global Chairman and 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 organization by 2020. It finished with a set of accomplishments and results that show us moving from strength to strength."
Revenue highlights by Area, market and sector
Across EY's geographic Areas, the Americas enjoyed an increase of 9.1% on FY13. All other Areas – Europe, Middle East, India and Africa (EMEIA), Japan and Asia-Pacific – posted growth above 5% in local currency. EMEIA was buoyed by a 16.5% increase in India revenues. Despite weakening economic conditions in some regions, Asia-Pacific benefited from 6.8% revenue growth in Greater China.
EY's emerging market practices grew by 8.7% overall, despite tough economic conditions and a slowdown in a number of key emerging market economies. This compares to 12% last year.
Weinberger says:
"Emerging markets will continue to drive economic growth for the foreseeable future. By 2020, we're predicting about 30% of our revenue will be from emerging markets and we have earmarked US$1.5b 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.
People
Weinberger says:
"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."
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 our 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% of them women, reflecting the importance placed on diverse, global experience in a world of increasing cross-border complexity.
Investing in the future
As well as investing in people and markets, EY is also investing across its service lines. These investments include:
- Assurance: EY is making significant multi-year investments to transform the audit, to continuously improve audit quality and to fulfill stakeholder and public interest responsibilities. US$400m investments are being made in state-of-the-art audit technologies and processes to enhance audit quality and improve connectivity and collaboration.
Carmine Di Sibio, EY's Global Managing Partner – Client Service, says:
"Investor confidence is the foundation of a strong global economy and sustainable audit quality is critical to that confidence. Auditors are being asked to do more to identify risk, have a forward-looking perspective and deliver high-quality results.
"We are making investments in process, people and technology, and combining this with advances in analytics to transform and increase the value and quality of the audit."
- Advisory: Advisory continues to grow organically, as well as through targeted acquisitions, to complement existing services and offerings. Substantial investments in digital, disruptive technologies and business analytics will further enhance Advisory's ability to deliver transformational services to clients.
- Transaction Advisory Services (TAS): For a fifth consecutive year TAS performance outpaced a subdued mergers and acquisitions market, as clients looked to EY for strategic investment advice on how they raise and manage their capital. The combination with global strategy consultants Parthenon underlines TAS' investment in broader strategic services for FY15.
- Tax: EY continues to invest in resources to help clients globally to comply with the ever-changing legislative and regulatory requirements impacting their businesses. Tax has strengthened and enhanced other services, including doubling the number of countries where it practices law. The strategic acquisition of Thomson Reuters' Tax Preparation and Court Accounting Outsourcing businesses will enable EY to further expand tax offerings to financial services organizations.
Weinberger adds:
"These investments show the confidence that we have in EY's future and in our clients' businesses. We have more people, helping more clients, in more places than ever before – building a better working world through our people and our commitment to quality and exceptional client service."
Supporting the next generation
As well as investing in its people and its business, as part of EY's commitment to building a better working world, it is helping to tackle many issues important to our people, and economies around the world. One of those is the issue of youth unemployment – one of the most intractable social and economic challenges the world faces today. We tackle it through a strong internal commitment to developing future leaders and by supporting and collaborating with global initiatives in this field.
Weinberger says:
"We have many alliances and initiatives around the world to create opportunity and stimulate debate and solutions. For example, our membership of the Alliance for YOUth in Europe, our collaboration with the Clinton Global Initiative and relationships with Network for Teaching Entrepreneurship and Junior Achievement."
Notes to editors
About EY
EY is a global leader in assurance, tax, transaction and advisory services. The insights and quality services we deliver help build trust and confidence in the capital markets and in economies the world over. We develop outstanding leaders who team to deliver on our promises to all of our stakeholders. In so doing, we play a critical role in building a better working world for our people, for our clients and for our communities.
EY refers to the global organization, and may refer to one or more, of the member firms of Ernst & Young Global Limited, each of which is a separate legal entity. Ernst & Young Global Limited, a UK company limited by guarantee, does not provide services to clients. For more information about our organization, please visit ey.com.
This news release has been issued by EYGM Limited, a member of the global EY organization that also does not provide any services to clients.
To watch Mark Weinberger discuss EY's revenues and plans, please visit: http://www.ey.com/GL/en/Newsroom/News-releases/News-EY-reports-2014-global-revenues-of-27-4-billion-dollars
Tehira Taylor
EY Global Media Relations
+44 (0)20 7980 0703 / +44 (0)7920 577 549
tehira.taylor@uk.ey.com
EY FY14 revenues – selected information
EY revenues by service line – US$ millions |
||||
FY14 |
FY13 |
% Change |
||
Local currency |
US$ |
|||
Assurance |
11,277 |
10,936 |
4.5% |
3.1% |
Tax |
7,224 |
6,946 |
4.3% |
4.0% |
Advisory |
6,526 |
5,751 |
14.4% |
13.5% |
Transactions Advisory Services |
2,342 |
2,196 |
6.5% |
6.6% |
Total |
27,369 |
25,829 |
6.8% |
6.0% |
EY revenues by Area – US$ millions |
||||
FY14 |
FY13 |
% Change |
||
Local currency |
US$ |
|||
Americas |
11,542 |
10,750 |
9.1% |
7.4% |
EMEIA |
11,780 |
10,943 |
5.1% |
7.6% |
Asia Pacific |
2,949 |
2,934 |
5.2% |
0.5% |
Japan |
1,098 |
1,202 |
5.3% |
(8.7%) |
Total |
27,369 |
25,829 |
6.8% |
6.0% |
EY people by service line |
||||
FY14 |
FY13 |
% Change |
||
Assurance |
69,547 |
66,156 |
5.1% |
|
Tax |
38,170 |
35,358 |
8.0% |
|
Advisory |
34,534 |
29,747 |
16.1% |
|
Transactions Advisory Services |
9,311 |
8,776 |
6.1% |
|
Practice support |
36,730 |
34,771 |
5.6% |
|
Total |
188,292 |
174,808 |
7.7% |
EY people by Area |
||||
FY14 |
FY13 |
% Change |
||
Americas |
58,411 |
53,835 |
8.5% |
|
EMEIA |
90,564 |
84,224 |
7.5% |
|
Asia-Pacific |
32,051 |
29,893 |
7.2% |
|
Japan |
7,266 |
6,856 |
6.0% |
|
Total |
188,292 |
174,808 |
7.7% |
Basis of presentation |
||||
Revenues include expenses billed to clients. For purposes of reporting combined global revenues, revenues between member firms have been eliminated. Headcount numbers reflect personnel as of 30 June of each financial year. |
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