Investment into emerging economies has helped propel Ernst & Young’s combined worldwide revenues to $24.5 billion. This represents growth of 16 percent (10 percent in local currency [lc] terms).
E&Y remains the third-largest global accountancy network behind PricewaterhouseCoopers and Deloitte. KPMG has not yet released its 2008 financial year results but would need to grow by more than 24 percent in US dollar terms to overtake E&Y on the revenue league table. This is an unlikely prospect as 24 percent growth is well above the industry average and KPMG’s financial year ends later than E&Y’s – meaning its revenues will have been more affected by the current economic downturn.
E&Y said worldwide growth was fuelled by a strategic focus to build in emerging markets. Growth was somewhat tempered by audit efficiencies that were gained as a result of the new US internal control standard as well as the economic downturn, the network added.
E&Y experienced its strongest increase across the Asia-Pacific region, where revenues increased by 34 percent (26 percent lc) to $3.3 billion. E&Y’s EMEIA practice grew 18 percent (8 percent lc) to $11.4 billion and the Americas area increased 9 percent (7percent lc) to $9.8 billion.
“We are mid-way through a four-year programme that will see us invest $1 billion, principally in the emerging markets,” E&Y Global chief operating officer John Ferraro said.
The fastest growing service line across the network was tax, which increased by 21 percent. Assurance and advisory services remains the largest revenue generator, increasing by 14percent to $16.6 billion.