Ernst & Young reported that its global revenues for the fiscal year ended June 30, 2015 rose to $27.8 billion, an 11.6 percent increase over the firm’s fiscal 2014 revenues in local currency terms.
The 11.6 percent growth rate this past fiscal year outpaced the firm’s 6.8 percent growth rate last year. EY achieved its highest revenue growth since 2008 despite lingering global economic uncertainties.
EY reported that growth occurred across all four of its major services lines and geographic areas. Advisory services grew 17.6 percent in fiscal year 2015, compared to 14.4 percent growth in FY14). Assurance services grew 8.1 percent in FY15, compared to 4.5 percent in FY14. Transaction advisory services grew 15.5 percent in FY15, compared to 6.5 percent in FY14. Tax services grew 10.3 percent, compared to 4.3 percent in FY14.
Revenue increased across all four of EY’s geographic areas. In the Americas, it grew 12.3 percent; in Europe, the Middle East, India and Africa it grew 11.6 percent; in the Asia-Pacific region it increase 11.2 percent; and in Japan it rose 4.6 percent.
Strong performance in the developed markets was led by the U.S., which grew 12.5 percent to $11.2 billion, the largest increase in 10 years at EY. The U.S. firm achieved balanced performance across all businesses, sectors and geographies. Elsewhere in developed markets, the U.K. achieved strong growth, led largely by new major accounts across its audit practice, as well as the strength of its transaction advisory services and tax businesses. EY also saw double-digit growth in its Australian, German and Italian member firms.
“This year we realized strong gains across both developed and emerging markets, despite volatile conditions in many individual markets and a slowing global economy,” said EY global chairman and CEO Mark Weinberger in a statement. “We are proud of this year’s results, which saw fast-paced growth across all of our businesses and in each geographic area. Under our Vision 2020 strategy, we have been very explicit about our purpose of building a better working world and this has given us great momentum both inside and outside the organization. It has helped us attract, retain and motivate our people. Our purpose has also been valuable as we engage with our clients and in guiding our successful work on their complex issues.”
EY’s emerging market practices grew by 12.3 percent overall this past fiscal year, compared with 8.7 percent last year, despite mixed economic conditions in key emerging market economies. India led the emerging markets with 19.7 percent growth. Other strong regions included ASEAN (12.9 percent), Africa (11.3 percent), Mexico and Central America (17.3 percent) and Middle East and North Africa (14.7 percent).
“While short-term forecasts may be bearish on some emerging markets, we are seeing strong growth in these regions,” said Weinberger. “This reflects our strength and investments in those markets as we help our clients navigate these diverse circumstances. In fact, we are confident in the long-term potential of these economies and continue to expect that 30 percent of our revenue will come from emerging markets by 2020.”
A number of industry sectors achieved double-digit growth at EY. Life sciences led the way, thanks to strong M&A and IPO activity. EY’s global financial services sectors—insurance, banking & capital markets, and wealth & asset management—also experienced double-digit growth, led by strong demand for regulatory-driven transformation services and opportunities across digital delivery, data analytics and financial technology.
This past fiscal year, EY’s headcount reached 212,000 globally—an all-time high. The organization invested $535 million in training and delivered 8.2 million training hours to its employees.
Fiscal year 2015 also saw EY’s largest number of partner promotions since 2008, with 753 people promoted to partner, as well as 618 direct admit partners. This year’s new partner class was the most diverse ever, with 33 percent from emerging markets and 31 perdent women.
As part of its Vision 2020 strategy, EY is investing in innovations in audit quality, analytics and disruptive technology to support client needs. In July, EY formed a global innovation team—led by Jeff Wong as global chief innovation officer—to bring additional innovations to clients.
