EY reports 2015 global revenues up by 11.6% 

• Fastest growth since 2008 with revenues up by 11.6% in local currency
• Growth across all four service lines and four geographic areas
• Emerging market practices’ revenue up by 12.3%
• Developed markets’ growth led by the US, UK, Germany, Australia and Italy
• Headcount of 212,000 at all-time high (up by 23,000 over last year)

EY today announces combined global revenues of US$28.7b for its financial year ended 30 June 2015. This represents an 11.6% increase over financial year (FY) 2014 revenues in local currency, outpacing FY14 growth (which had increased by 6.8% over FY13).

All of EY’s service lines continued to grow in FY15 ahead of their FY14 growth: Advisory grew 17.6% (vs. 14.4% growth in FY14); Assurance 8.1% (vs. 4.5% in FY14); Transaction Advisory Services (TAS) 15.5% (vs. 6.5% in FY14); and Tax 10.3% (vs. 4.3% in FY14).

Mark Weinberger, EY’s Global Chairman and CEO, says:

“This year we realized strong gains across both developed and emerging markets, despite volatile conditions in many individual markets and a slowing global economy. 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.”

Growth achieved across all geographies, key markets and sectors

Despite an uneven global recovery, and an economy with serious weaknesses and uncertainty hampering both developed and emerging markets, EY achieved its highest revenue growth since 2008.

Strong performance in the developed markets was led by the US, which grew 12.5% to US$11.2b – its largest increase in 10 years. The US achieved balanced performance across all businesses, sectors and geographies. Elsewhere in developed markets, the UK achieved strong growth, led largely by new major accounts across its audit practice, as well as the strength of its TAS and Tax businesses. EY also saw double-digit growth in its Australian, German and Italian member firms.

EY’s emerging market practices grew by 12.3% overall (compared with 8.7% last year), despite mixed economic conditions in key emerging market economies. India led the emerging markets with 19.7% growth; other strong regions included ASEAN (12.9%), Africa (11.3%), Mexico & Central America (17.3%) and Middle East & North Africa (14.7%).

Revenue increased across all four of EY’s geographic areas: the Americas 12.3%; Europe, Middle East, India and Africa 11.6%; Asia-Pacific 11.2%; and Japan 4.6%.

Weinberger says: “While short-term forecasts may be bearish on some emerging markets, we are seeing strong growth in these regions. 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% of our revenue will come from emerging markets by 2020.”

A number of sectors realized double-digit growth. Life Sciences led the way, buoyed by strong M&A and IPO activity. EY’s global financial services sectors – Insurance, Banking & Capital Markets and Wealth & Asset Management – also delivered double-digit growth, led by strong demand for regulatory-driven transformation services and opportunities across digital delivery, data analytics and financial technology.

Investing in people

In FY15, EY headcount reached 212,000 globally – an all-time high. The organization invested US$535m in training and delivered 8.2m learning hours to give its people the skills needed to deliver in this fast-changing world. EY is proud to be voted in the top three in the Universum World’s Most Attractive Employer ranking for the third consecutive year.

Nancy Altobello, EY’s Global Vice Chair, Talent, says: “Our growth is a result of our people and their ability to deliver exceptional, high-quality service around the world. Our purpose – building a better working world – has helped us attract, retain and engage the most talented people around the globe – people who share our belief that by asking better questions we can get to better answers and build a better working world.”

FY15 also saw EY’s largest number of partner promotions since 2008, with 753 people promoted to partner, as well as 618 direct admit partners, highlighting the organization’s confidence in its future growth. This year’s new partner class was the most diverse ever, with 33% from emerging markets and 31% women.

Investing in the future

EY recognizes that investor confidence forms the foundation of today’s global economy, and the high-quality audits it provides play a vital role in enabling that confidence. Additionally, businesses and industries around the world are being dramatically disrupted by innovation and other megatrends. As part of its Vision 2020 strategy, EY is investing in innovations in audit quality, digital, analytics and disruptive technology to support its clients’ needs. In July, EY formed a global innovation team – led by Silicon Valley executive Jeff Wong as Global Chief Innovation Officer – to create a new platform to bring innovation to clients.

Carmine Di Sibio, EY’s Global Managing Partner – Client Service, says: “In today’s business environment, change is a constant. Our bold investments, such as our US$400m in audit transformation, and others in innovation, digital and analytics will continue to create opportunities through new and expanded offerings. Ultimately, these investments and innovations enable us to deliver exceptional, high-quality service and build a better working world.”

• Advisory: Advisory has delivered another year of double-digit growth as it works with clients to address their big, complex business issues. FY15 growth resulted from organic expansion, targeted acquisitions and new alliances. EY continues to build its significant presence in digital technology, cybersecurity, analytics and business transformation, providing innovative new solutions that use cutting-edge technology and ideas. It also continues to deepen its sector  capability, and its recently launched purpose-led transformation offering is gaining traction in the market.

• Assurance: EY enhanced its strong audit practice by focusing on delivering high-quality audit services, resulting in a number of high-profile audit wins across major markets. This year the organization launched EY Canvas, its new audit technology platform, and EY Helix, its suite of enhanced analytics applications, as part of its continued investment and innovation in its audit approach. These tools are also used in EY’s Private Middle Market approach, providing a more tailored audit suited to the specific needs of these clients. Pending auditor rotation across the European Union continues to provide opportunities and challenges. EY is encouraged by its strong growth in market share, winning major new accounts including Philips, Royal Dutch Shell and RBS. Fraud Investigation & Dispute Services and Financial Accounting Advisory Services also continue to deliver impressive growth, providing vital complementary services to EY’s Audit practice.
• Tax: Tax doubled its growth over the prior year by responding rapidly to tax environment changes and strategically investing to expand capabilities and technologies that meet client needs. Double-digit growth spanned developed and emerging markets, with the US, Germany, Italy, ASEAN, Africa and Mexico leading the way. Tax also increased its focus on people advisory services, law and transfer pricing, while strengthening key sector skills in technology, real estate and life sciences. Innovations were made in tax function transformation, as Tax Performance Advisory Services helped clients address their increasing transparency and reporting demands.
• Transaction Advisory Services: TAS reported record revenues globally and its highest growth since before the financial crisis as the practice broadened its services further to meet changing market demand. The ongoing investment in services that help clients strategically manage their capital was underlined by the combination with global investment strategy consultants Parthenon.

Overall, EY is growing and moving forward, while working constructively with regulators and other stakeholders. EY is working through new audit regulations around the world, particularly in the EU, and continuing to invest and innovate around quality that will improve the state of capital markets. EY also continues to provide services that complement its audit capabilities and, through these, improving the value and performance of global businesses.

Investing in communities

EY enables its people to use their skills and passions to make significant differences to improving their communities and in addressing some of society’s most pressing issues. In FY15, EY contributed US$60m in cash to its communities. EY’s people contributed 350,000 hours of time to more than 100 initiatives around the world and regularly make significant financial and value-in-kind contributions to the communities in which they live around the world.

The focus of EY’s programs include mentoring young people to help them access education, such as through EY’s NextGen program in Africa, PACE in Malaysia, and College MAP (Mentoring for Access and Persistence) in the US. High-quality work experience is made available through initiatives such as Smart Futures, in the UK, and Pathfinder, in Germany. EY also supports entrepreneurs to fuel job creation and economic growth. As part of this, EY’s people have to date worked on 25 social projects for up to six months each, enabling social entrepreneurs to bring affordable education, energy, sanitation and health care to low-income countries, changing the lives of millions. For example, EY supported Jibu to launch a franchise business that will create jobs and make clean, affordable water available in East African cities.

Source: Ernst & Young

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