London: Ernst & Young this week announced combined global revenues of US$24.4 billion for the financial year ended 30 June 2012, compared with US$22.9 billion in 2011. Revenues grew 7.6% in local currency (US$ 6.7%), driven on by an exceptional performance from consulting.
- Good growth across all service lines
- Advisory business drives growth
- Emerging markets saw combined revenue growth of 15.5%
- Headcount at an all-time high of 167,000
The firm says its business model and strategy continue to weather the economic turmoil and withstand the test of time. All of its service lines showed growth. Assurance revenues were up 4.1%, Tax 7.0%, Transactions 9.4% and Advisory 16.2%.
Growth in all service lines was almost entirely organic, with acquisitions accounting for less than one half of one percentage point.
"FY12 remained a dynamic and volatile period in the world economy. The ongoing sovereign-debt crisis in Europe, the impending 'fiscal cliff' in the US, and signs that the emerging-market economies are slowing all point toward a challenging business climate in the months ahead.
"We will also continue to face regulatory uncertainty in many jurisdictions around the globe. That said, we are pleased that our business showed good results, the best since 2008, in the midst of what has been several years of uncertainty," said Jim Turley, Global Chairman and CEO of Ernst & Young.
The firm's strongest performing sectors, all with double digit growth, were: Automotive, Life Sciences, Mining & Metals and Oil & Gas.
Ernst & Young said, "As a result of the improvement in our business, we've grown our headcount to 167,000, an increase of more than 15,000 people in fiscal 2012. And, while we still have much to do in terms of diversity and inclusiveness, we are making steady improvement. Globally 25% of our new partners this year are women, up from 23% last year and 20% in 2010.
"Our success in the emerging markets is largely the result of a strategic investment program started six years ago. Since the inception of this program, we have invested more than US$1.8 billion in our geographies, the majority of which has been earmarked for the emerging markets."
"We are committed to maintaining our investment in the emerging markets," said John Ferraro, Global Chief Operating Officer of Ernst & Young. "Every growth orientated company, no matter where they are headquartered, knows their importance."
The results of this have been clearly visible in 2012, as Brazil saw organic revenue growth of 17.5%, while India, Africa, China and the CIS increased revenues 19.8%, 10.2%, 11.8% and 15.6%, respectively.
"Ernst & Young, and our profession's role in the world's capital markets, has never been more important. Given these uncertain economic times we have to remain focused on working with our clients to deliver the best possible service, wherever they are in the world," said Turley.