E&Y FY2007 Revenues rise to $21.1 Billion
Date: 01-11-2007
Source: Business Wire
Ernst & Young today announces that worldwide combined revenues increased to US$21.1 billion for the fiscal year ending 30 June 2007. This represents a year-on-year revenue increase of US$2.7 billion and a growth rate of 15% (11% in local currency terms).
"Our strong performance over the last fiscal year reflects the success of our long-established strategy to develop a truly global approach to our business," said James S. Turley, Ernst & Young's Chairman and CEO. "Several years ago, we committed ourselves to a structure for the global organization which has brought together all of our 130,000 people, across 140 countries, through seven tightly integrated Area practices."
"Our global integration efforts recognize the profound changes occurring in the broader business environment, including rapid globalization, and the rise of the emerging markets. In this context, we are better able to deliver against our clients' ever-higher expectations of seamless, consistent, high-quality client service wherever they operate around the world," added Mr. Turley.
"Having already brought together groupings of country practices within our Area structure, we are better able to meet market demands more quickly and effectively, while respecting the legal and regulatory requirements in each country," commented Ernst & Young Global Chief Operating Officer, John Ferraro. "In addition, we can more easily invest across the globe in quality and services, and deploy people with the right skills to serve our clients."
The strength of the global platform has enabled double digit performance across each of Ernst & Young's global service lines of Assurance and Advisory Business Services (AABS), Tax, and Transaction Advisory Services (TAS), as well as each of the seven geographic Area practices.
TAS led the service line growth, achieving a 29% revenue increase, reflecting Ernst & Young's involvement in some of the largest deals over the period, including significant activity in the emerging markets, and the exceptional demand from Private Equity clients. Tax revenue improved by 18%, owing to strong demand for these services, particularly in the Far East and Americas. The continued steady demand for assurance and risk-based services, together with the growing call for business advisory services, enabled AABS revenue to grow by more than 16%.
In the seven Areas, US dollar growth has been as follows: 10% in the Americas; 22% in Northern Europe, Middle East, India and Africa; 16% in Central Europe; 17% in Continental Western Europe; 27% in the Far East; 16% in Oceania, and 21% in Japan. Notably, in places where strategic investments have been made - such as China, India and Russia - growth in excess of 30% has been achieved.
"The great strides we have made towards the global alignment of our business will be supplemented with further significant investment in markets of strategic importance in the years ahead. We believe this focus, combined with the diversity of our people, the power of our values-based culture and our unwavering commitment to quality, gives us real competitive advantage in the global marketplace," concluded Mr. Turley.
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