EY Announces Combined Global Revenues of US$37.2 Billion in 2020

Balanced growth across EY despite a more challenging business environment due to COVID-19

On September 10, 2020, EY announced combined global revenues of US$37.2 billion for the financial year ended June 2020, an increase of 4.1% in local currency despite the global economic impact caused by COVID-19. Over the past seven years, the global EY organization (EY) has recorded a strong 7.7% compound annual growth.

Growth across all services lines, geographies, key industries, and markets in FY20

In FY20, all EY service lines delivered growth: Assurance grew 3.1%; Advisory 4.9%; Tax 5.1%, and Transaction Advisory Services 2.8%, all in local currency. Revenue also increased across all three EY geographic areas: the Americas 3.4%; Europe, Middle East, India, and Africa (EMEIA) 3.4%; and Asia-Pacific 8.2%. 

Among the top five markets, Japan led with double-digit growth of 10.8% and Greater China delivered another strong year. Elsewhere, Australia, Brazil, Korea, and Norway delivered strong growth. Emerging markets also continued their strong growth trend and are up by 6%. EY also recorded strong growth across the Technology, Consumer, Private Equity and Wealth & Asset Management sectors, driven largely by demand for digital and tech-enabled service

CEO's message

Carmine Di Sibio, EY Global Chairman and CEO, said: "The COVID-19 pandemic has affected people, businesses, and communities everywhere, creating new challenges for us all. During this difficult period, our number one priority has been the safety of EY people, clients, and communities."

He further added, "It is the determination and focus of EY people that enabled us to support EY clients around the world during this unprecedented time. In a matter of weeks, we had nearly 300,000 EY people working remotely and supporting EY clients' business continuity and resilience needs. EY people also created a wide range of pandemic-related solutions for clients and provided pro-bono support to communities and governments. These efforts illustrate the strength of our culture, founded on our purpose to build a better working world."

While the last few months have been challenging, the company has remained focused on NextWave Strategy, which they initiated last October to build long-term value for all stakeholders. 

EY's NextWave Strategy

Launched in FY20, the NextWave Strategy expands on the EY purpose of "building a better working world and has a clear ambition to create long-term value for all stakeholders". The elements of the NextWave strategy will be measured using the EY long-term value framework, which is built on four value dimensions: human/people value; consumer/client value; social value; and financial value. 

As part of the NextWave Strategy and to meet increasing C-suite strategy, transformation, and technology needs, EY has introduced two redefined service lines on July 1, 2020;

• Strategy and Transactions (formerly Transaction Advisory Services) has an expanded strategy consulting offering, integrating EY-Parthenon with the former Transaction Advisory Services business and strategy capabilities moved from elsewhere in EY. Upon relaunch, EY-Parthenon immediately became the world's fifth-largest strategy organization by revenue, and the new service line will focus on helping EY clients transform and execute their strategy to optimize the value of their organization and realize their potential.

• Consulting (formerly Advisory) helps EY clients transform and thrive in a market of accelerating, complex change based on three value drivers: humans at the center, technology at speed, and innovation at scale. It counts on a unique ecosystem of solutions, technologies, and alliances to help companies realize their transformational needs. As part of this new redefined service line, EY is significantly accelerating the expansion of Technology Consulting services through organic hiring and acquisitions.

Future Investment Focuses

To accelerate the digital transformation of the global organization, for FY21 there are plans to invest US$1.5b in audit quality, technology solutions, people, and the wider EY ecosystem of strategic alliances. The investments will see further build-out of the client technology platform which underpins EY services and enables the global organization to drive client service innovation and deliver projects across EY at scale and speed. This proprietary platform has 1m client users in addition to nearly 300,000 EY people in over 150 countries, with upwards of 500m business transactions processed per day. EY is already a top global user of cloud technology, with 80% of EY business-critical platforms hosted on cloud technology across 160 countries. The investments will prioritize four key areas: High-quality audits, New and emerging technology, People, and Ecosystems.

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