Despite a difficult business environment, EY reports combined global revenues of US$29.6 billion for its financial year ended 30 June 2016. Overall, financial year 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%.
“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,” says Mark Weinberger, EY Global Chairman and CEO.
“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
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.
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.
EY’s emerging market practices recorded a second consecutive year of solid double-digit growth – up 12.8% overall (outpacing FY15 growth of 12.3%) – despite continued difficult economic conditions in key emerging market economies.
Growth in the emerging markets was led by India (18.4%); Greater China (14.6%) and Brazil (12%), where the EY member firm in Brazil sponsored the Rio 2016 Olympic Games and was the official professional services provider to the Rio 2016 Organizing Committee.
EY recorded strong, double-digit growth across five key industry sectors: the Banking & Capital Markets and Insurance sectors achieved double-digit growth, which was led by strong demand for services supporting regulatory change, cybersecurity, digital transformation and financial technology.
Technology sector revenue was driven by strong M&A activity, transformative change in the industry tied to emerging and innovative technologies and increasing client engagements supporting the sharing economy.
Health and Government & Public Sector growth was driven by transformational and regulatory services and new engagements in the areas of robotics and data analytics, among others.
Most attractive professional services employer
EY recognizes that the quality of its people underpins the value of work it delivers to the market. In FY16, EY invested more than US$500m in training and nearly 12m hours in learning to its people, an increase of 3m hours over the prior year.
EY is proud to be voted the world’s most attractive professional services employer – and again the third most attractive employer overall – in Universum’s annual World’s Most Attractive Employer ranking.
In addition to its global ranking, EY firms were named the number one professional services employer in five countries: US, Canada, France, China and Australia. EY was also recognized by Great Place to Work as one of the World’s Best Multinational Workplaces.
The organization also saw 714 people promoted to partner and more than 380 join EY firms as partners. This year’s newly promoted partner class is among the most diverse ever, with 35% from emerging markets and 29% women. Overall, headcount increased by 9.2% over FY15, reaching 231,000 people globally.