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6 Oct 2016 10:30am

EY reports record global revenues

EY has posted its sixth consecutive year of record growth, with revenues rising by 9%

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Caption: Big Four firm posts sixth consecutive year of record growth

The Big Four firm posted global revenues of $29.6bn (£23.25bn) with all of its service lines delivering growth.

EY’s assurance business grew 4.8% in the year ended June. Advisory rose 13.1%, tax 9.6% and transaction advisory services 14.2%.

Also this week, PwC announced its global results, with revenues growing 7% to $35.9bn.

However, the growth was not enough to secure its spot as the world’s largest firm, after rival Deloitte announced its own record revenues of $36.8bn last month.

There is still more work to do as we focus on helping businesses solve their toughest challenges

Mark Weinberger, EY global chairman and chief executive

These results place EY as the third largest accountancy firm. Last year, KPMG posted revenues of $24.44bn and is yet to reveal this year’s results.

EY saw revenues increase across its four geographic areas, with turnover in its American region growing 9.7%, Europe, Middle East, India and Africa’s revenues rising 7.5%, Asia-Pacific 12.5% and Japan 6.4%.

Revenues in the US rose to $12.2bn thanks to major audit engagement wins, while the UK achieved strong growth led by its assurance and tax businesses.

Mark Weinberger, EY global chairman and chief executive, said the growth in revenues was achieved despite a “difficult business environment”.

“We are seeing continued global economic headwinds including geopolitical uncertainties, divergent monetary policy and turbulent emerging markets,” he said.

EY said it is working with businesses, entrepreneurs and government to solve their most pressing challenges, with innovation and technology pointed as the major disruptions to businesses and industries.

The chairman added, “There is still more work to do as we focus on helping businesses solve their toughest challenges.”

In 2016, EY signed seven new agreements, including with GE Digital and LinkedIn, in a bid to expand its professional skills and capabilities. It also launched its global innovation team, which plans to bring robotics and artificial intelligence to businesses.

The Big Four firm invested $500m in training this year and was voted the world’s most attractive professional services employer by Universum.

It promoted 714 people to partner and 380 new people joined the firm as partners, with 29% of them being women. The firm employs now 231,000 people globally.

Jessica Fino

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