- Good growth across all service lines
- Emerging markets saw combined revenue growth of 20%
- Headcount at an all time high of 152,000
Ernst & Young today announced combined global revenues of US$22.9 billion for the financial year ended 30 June 2011, compared with US$21.3 billion in 2010, a 7.6% increase. In local currency, revenues grew 5.3%.
“We have had a very strong year in each of our four geographic areas. We continue to see very positive reactions to the way we have globalized our organization over the last few years, our investments in emerging markets and the great dedication and commitment of our people,” said Jim Turley, Global Chairman and CEO of Ernst & Young.
All of our service lines showed growth, reflecting our focus, and a better economic environment and renewed activity in the capital markets in the past year. Assurance revenues were up 5.0%, Tax 6.0%, Advisory 17.5% and Transaction Advisory Services 7.7%.
We continue to win more than our fair share of new audit mandates, including some of the largest global organizations, such as Assicurazioni Generali, Enel, Fiat, PSA Peugeot Citroën, and Jabil Circuit. We are the fastest growing tax practice for the past five years and leading analysts Kennedy recently ranked Ernst & Young number two for other business advisory services (note 1). Growth in all of our service lines was almost entirely organic, with acquisitions accounting for less than one half of one percentage point.
As a result of the improvement in our business, we’ve grown our headcount to 152,000 an increase of nearly 11,000 people in fiscal 2011.
Turley adds, “In today’s increasingly complex and diverse world, we are focused on building lifelong relationships with our people. This ensures we have outstanding talent to provide our clients the best service wherever they do business.”
Our success in the emerging markets is largely the result of a strategic investment program started five years ago. Since the inception of this program, we have invested more than US$1.5 billion in our geographies the vast majority of which has been earmarked for the emerging markets.
The results of this have been clearly visible in 2011 as Brazil saw organic revenue growth of 26%, while India, Africa, China and the CIS increased revenues 22%, 19%, 18% and 16%, respectively.
“As we continue to serve our clients and stakeholders in the emerging markets, we will maintain this investment at comparable levels for the foreseeable future,” said John Ferraro, Global Chief Operating Officer of Ernst & Young.
“Given these uncertain economic times it is more important than ever we continue to remain focused on the important role that we play in the world’s capital markets, in our profession, with our clients and with our people,” concluded Turley.