EY has announced combined global revenues of $29.6bn (£23.3bn) for its financial year ended 30 June 2016, up 9% compared with the previous year and marking its sixth consecutive year of growth in what the firm termed ‘a difficult business environment’
The firm reported that all service lines delivered growth, led by transaction advisory services (TAS), which increased by 14.2% to reach $2.7bn, fuelled by large scale transformations and capital transactions. Assurance grew 4.8% to $7.8bn, advisory 13.1% to $11.3bn and tax 9.6% to $7.7bn.
EY currently ranks third globally, in regards to fee income.
Mark Weinberger, EY global chairman and CEO, said: ‘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.’
The US led developed markets growth, recording $12.2bn in revenue, a 9.3% increase over 2015, and with double-digit growth across its tax, TAS and advisory service lines. The firm singled out strong growth in the UK, led largely by its assurance and tax businesses, along with good performances from member firms in Australia, France, Italy and Japan.
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%.
EY’s emerging market practices recorded a second consecutive year of double-digit growth, up 12.8% overall. The top performer was India (18.4%; followed by greater China (14.6%) and Brazil (12%).
Weinberger said: ‘We are particularly pleased to have achieved double-digit growth across the emerging markets, despite ongoing volatility, and remain confident in the long-term potential of these economies.’
As part of its focus on innovation, EY member firms made 26 strategic acquisitions over the year with the aim of bringing expanded professional skills and capabilities to the market, as well as seven new global alliances to expand resources and capabilities. EY says there has been significant investment in digital transformation, analytics, artificial intelligence, robotics and global centres of excellence.
Overall, headcount increased by 9.2% over the year, reaching a total of 231,000 people globally. The organization also saw 714 people promoted to partner and more than 380 join EY firms as partners. The firm says this year’s newly promoted partner class is among the most diverse ever, with 35% from emerging markets and 29% women.
