EY released their financial results in Australia in early August similar to KPMG. They announced revenues of $2.13 billion. They claimed that this is growth of 12.7 percent over the prior year. This compares to $1.887 billion in revenue in the prior year.
EY CEO for the Oceania territory had the following to say
Our firm’s resilience during FY20 is the result of a combination of factors that have been integral to our strategy for some time and have stood us in good stead during these difficult times. These include our incredibly strong Assurance business, strong and trusted relationships with our clients, our investment in broadening the capability of our consulting businesses and our investment in technology across our entire business. All enabled by the expertise, effort and flexibility of our people.”
EY contends that their technology approach has allowed them to deploy their 8,300 people effectively during the pandemic.
They made 3 acquisitions during the year:
Aleron – bolstered the firms technology capabilities. This appears to be a cybersecurity firm.
Cadence Economics – to expand the firm’s economics capability and the chief economist at EY. This will help EY’s economics advisory business.
Port Jackson Partners – help to build their strategy business. KPMG also mentioned how important their strategy business was in their 2020 financial report.
They attribute some good growth in the current year to prior year acquisitions of Karrikins and Adelphi Digital and Plaut. Adelphi Digital and Plaut is a technology business while Karrikins is a social impact business. They also attribute much of their growth to the financial services business which grew 20 percent in the current year. The financial services business helped clients with complex transactions, actuarial work, and financial crime, cyber and assurance work.
Assurance grew by 10%. Some of the growth can be attributed to being appointed auditors of BHP and Origin Energy.
Tax grew by 8%.
Strategy and Transactions grew by 6 percent. They say that they were the number one M&A advising accountant in Australia for this time period.
The firm contributed 46,000 hours of volunteer time and pro bono work. This is 2,000 hours more than KPMG.
Statement About The Future
The EY CEO for Oceania had the following to say about the future:
I am very proud of the firm’s FY 20, the result of an amazing contribution by all our people in challenging and testing times. We are not out of the woods from either a health or economic perspective. The prolonged economic uncertainty we are facing means we will continue to require an agile strategy, mindset and culture to navigate FY21 and beyond. Our plan will not change – focusing on saving lives, saving jobs and managing our business for the long term. While we must be appropriately cautious about the immediate future, we are still on the look out for opportunities, whether they be acquisitions or people that will add value to our business – particularly in technology, strategy, law, digital and climate and sustainability services. This will further strengthen our ability to advise our clients across the increasingly broad spectrum of their needs and provide our people with unparalleled career development opportunities. Our clients – large and small – across all sectors are continuing to face into tough challenges as they also manage their businesses not only in the now but also in the Next and Beyond. It is our ambition to deliver long-term value to our clients, people and society.
Summary and Insights
EY did a great job in Australia. They had almost 13% growth compared to KPMG’s 7%.
EY has 8,300 people while KPMG has 6,700. KPMG is making pretty good revenue with far less people. This is a common theme for EY. This shows that they have some of the lowest rates in the big 4. Keep that in mind if you choose to work for EY.
Use the statements by the Australia CEO to understand what is important to EY and also to learn how to speak like a big 4 accountant.