Ernst and Young reported their 2017 revenues on September 5 2017 and the news was released straight out of their headquarters in London.
They recorded their seventh consecutive year of revenue growth.
Their revenues for 2017 were 31.4 billion. Wow that is huge number. This represents 7.8% growth from their revenues in 2016. Their 2016 revenues were 29.6 billion.
Play our podcast where we discuss EY’s 2017 Revenue below
Where did all that growth come from? Let’s take a look at how the revenue breaks down by line of service first.
Assurance continues to be the most profitable line of service for E&Y at least from a revenue perspective. They earned 11.6 billion from their assurance practice.
Advisory was their next most profitable practice at 8.5 billion dollars.
Tax was the third largest line of service at 8.2 billion dollars
Transaction Advisory Service came in last at 3.1 billion. This is a separate line of service where in most other accounting firms Transaction Advisory services is just included with Advisory.
|Transaction Advisory Services||$3.1 billion|
The highest growing line of service was transaction advisory services with a 15.5% growth rate. The next highest growing practice was advisory with 10.4%.
Now lets take a look at revenue by region. The most profitable region for EY was their Americas region. Their Americas region earned $14.5 billion. Their next most profitable region was their EMEIA region with 12.2 billion in revenue. Their third largest region was their Asia Pacific region with $3.6 billion in revenue. Their last region was Japan where they earned $1.1 billion in revenue. It’s unique that they consider their Japan region separate from their Asia Pacific region.
Their region with the highest growth was their Asia Pacific region with 11.3% growth.
Another thing that the big 4 accounting firms like to do with these revenue releases is release their number of employees. EY grew their practice to 247,570 employees. This represents an increase of 7.3% as compared to their 2016 fiscal year. They had 230,800 employees in 2016. This makes a lot of sense because the percentage increase in employees is usually the same as revenue growth because the big 4 accounting firms make money based off of their employees output.
All in all this is a good year for EY. They were able to break the $30 billion dollar club and join PwC and Deloitte by making over 30 billion in one year. We have yet to hear from Deloitte and PwC to see if either of them will break $40 billion a year.
Mark Weinberger who is the EY global chairman had the following to say about the company’s performance this year:
We have once again achieved strong revenue growth in what continues to be a complex business environment. In this disrupted and fast-paced world, clients are increasingly turning to EY for advice and insights on how to better manage risk, where to seek growth and how to weave digital into their strategies and operations. EY has a holistic approach to digital transformation and innovation, which is embedded across all service lines and sectors. Significant investment in people and new technologies have allowed us to respond to the dynamic environment.
“While remaining focused on providing high-quality services, we are embracing these changes and utilizing technologies like robotic process automation (RPA), artificial intelligence (AI) and analytics to support clients as they work their way through these changing times.”
He is trying to talk about EY’s good performance this year while also promoting EY’s technology tools as the technological consulting landscape gets more competitive. It will definitely be a battle to see who performs the best in the digital consulting age. One of the biggest things that EY announced is that they are going to try to use drones for inventory audits which is awesome. It’s also awesome just to imagine an associate in a cubicle manning a drone while still counting the inventory on the computer screen in his cube.
You know the ultimate product will be to have some kind of computer recognition of inventory, but before that you also know that it’s going to be some associate just watching a monitor and counting inventory on a screen while the drone is filming the inventory.