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.
About Ernst & Young
Ernst & Young is a global leader in assurance, tax, transaction and advisory services. Worldwide, our 130,000 people are united by our shared values, and an unwavering commitment to quality.
For more information, please visit www.ey.com
Ernst & Young refers to the global organization of member firms of Ernst & Young Global Limited, each of which is a separate legal entity. Ernst & Young Global Limited, a UK company limited by guarantee, does not provide services to clients.
This press release has been issued by EYGM Limited, a member of the global Ernst & Young organization, that also does not provide any services to clients.
James Turley - Steve Howe - Area Pierre Hurstel - GlobalChairman and Managing Partner, Managing Partner, PeopleChief Executive AmericasOfficer +44 20 7980 0405 +1 212 773 3258+1 212 773 4300 ----------------------- -------------------------- Mark Otty - Area Sue Frieden - GlobalJohn Ferraro - Managing Partner, Managing Partner,Global Chief Northern Europe, Quality and RiskOperating Officer Middle East, India Management and Africa+44 20 7980 0044 +44 20 7980 0778 +44 20 7951 4966 ----------------------- -------------------------- Christoph Gross - Herman Hulst - Global Area Managing Managing Partner, Partner, Central Client Service and Europe Accounts +49 6196 996 26250 +44 20 7980 0017 ----------------------- -------------------------- Patrick Gounelle - Jeff Dworken - Global Area Managing Managing Partner, Partner, Continental Operations and Finance Western Europe +33 1 46 936622 +1 212 773 6914 ----------------------- -------------------------- David Sun and Jim John Murphy - Global Hassett - Co-Area Vice Chair, Assurance Managing Partners, and Advisory Business Far East Services +852 2846 9668 +44 20 7980 0255 +852 2629 3088 ----------------------- -------------------------- James Millar- Area Sam Fouad - Global Vice Managing Partner, Chair, Tax Oceania +44 20 7980 0800 +612 9248 4333 ----------------------- -------------------------- Toshio Mizushima- Dave Read - Global Vice Area Managing Chair, Transaction Partner, Japan Advisory Services +81 3 3503 1122 +44 20 7980 0550------------------- ----------------------- --------------------------
2007 Ernst & Young Revenue Data TablesRevenue Fiscal Year Fiscal % change % changeIn Millions of US 2007 Year in US $ in local Dollars 2006 currency -------------------------------------------AABS US$ 14,530 12,555 16% 12%TAX 5,566 4,710 18% 14%TAS 2,463 1,909 29% 24%Elimination (a) (1,455) (815) ----------------------------------------TOTAL REVENUE US$ 21,104 18,359 15% 11% ===========================================(a) For management reporting purposes certain revenues are included in multiple Service Lines and have been eliminated in presenting total revenue.Personnel by Service At 30 At 30 % change Line June 07 June 06 ---------------------------------AABS 69,521 63,475 10%TAX 22,071 19,921 11%TAS 5,692 4,762 20%Practice Support and Administration 27,051 26,121 4% ---------------------------------TOTAL PERSONNEL 124,335 114,279 9% =================================Partners and Principals (included in the above) 7,604 7,217 5%=========================================================By EY Areas------------------------Revenue Fiscal Fiscal % change % changeIn Millions of US Year Year in US $ in local Dollars 2007 2006 currency -------------------------------------------Americas US$ 9,019 8,214 10% 10%Northern Europe, Middle East, India, Africa 4,080 3,354 22% 14%Central Europe 3,297 2,850 16% 9%Continental Western Europe 2,255 1,929 17% 9%Far East 1,010 796 27% 23%Oceania 718 617 16% 11%Japan 725 599 21% 26%(b) -------------------------------------------TOTAL REVENUE US$ 21,104 18,359 15% 11% =========================================== (b) Reflects changes in fiscal year end and certain other changes related to Japan's adoption of EY's global financial information system.Personnel At 30 At 30 % change June 07 June 06 ---------------------------------Americas 40,635 38,591 5%Northern Europe, Middle East, India, Africa 25,581 22,792 12%Central Europe 17,882 16,565 8%Continental Western Europe 13,254 12,738 4%Far East 17,780 15,648 14%Oceania 4,723 4,410 7%Japan 4,480 3,535 27% ---------------------------------TOTAL PERSONNEL 124,335 114,279 9% =================================
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