EY revenues rise to $36.4 billion in 2019

Big Four accounting and consulting firm EY posted strong revenue growth across service lines and geographies, with global revenues rising 8.0% in the financial year ending June 2019, compared to 7.4% in FY 2018.

"While the past year has seen a number of strains in the global economy – from trade tensions, protectionism and recession fears – we have achieved strong growth from our continued focus on long-term value creation using technology to transform traditional EY services and to launch new, innovative solutions,” Carmine Di Sibio, EY Global Chairman and CEO, said. “As a result, more EY clients are turning to us for both traditional and a newer range of services. EY clients see us as a strategic part of their wider ecosystem enabling their success in today's marketplace.”

The firm plans to invest $1 billion over the next two years into new technology solutions and capabilities. In FY 2019, EY saw a threefold increase in the number of blockchain activities, with notable efforts in wine industry tracking, content rights and royalty management, and marine insurance.

Meanwhile, the consultancy completed 20 acquisitions in the year, strengthening skills and capabilities across strategy, operations, and technology. Notably, EY further prodded into the legal space with the acquisition of Riverview Law and Pangea3.

The firm also entered into eight new alliance agreements, including with AI firm Stratio BD, Symantec, and Thomson Reuters. 

EY’s global headcount grew 8.6% to reach more than 284,000 people, while 1,163 people were promoted to partner or admitted into EY member firms. Women represented nearly 30% of the new partners, while gender diversity on the EY global executive increased, with women now accounting for over 31%.

All service lines saw growth, with assurance and tax growing 4.4% and 8.6%, respectively. The advisory and transaction advisory services units, however, saw the greatest increases at 9.2% and 15.5%, respectively. The two units have far outstripped the CAGR growth of assurance (4.9%) and tax (7.8%) over the past six years, at 12.3% and 13.6%, respectively.

Technology demand has obviously been a big part in the continued growth of the EY’s advisory practice, as has been the story at other large accounting and consulting firms.

Revenue also increased across all four of the EY geographic areas: the Americas (8.5%); Europe, Middle East, India and Africa (7.1%); Asia-Pacific (9.1%); and Japan (7.5%).

EY’s largest market, the US, grew by an impressive 9.1% to reach $15.3 billion in billings, driven by strong demand for transaction advisory services due to a strong capital and M&A market. The US advisory business, meanwhile, saw double-digit growth from robust performance improvement services demand.

Emerging markets grew 10.7% in FY 2019, with Greater China growing 13.2% (vs 11.6% in FY 2018) and India revenues increasing by 19.1% (vs 16.3% in FY 2018).