Ernst and Young reported their 2019 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 2019 were $36.4 billion, 2018 it was $34.8 billion and 2017 it was $31.4 billion. Wow that is a huge number. This represents 8% growth from their revenues in 2018.

2019$36.4 billion
2018$34.8 billion

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 gross revenue perspective. They earned $12.6 billion from their assurance practice.

Advisory was their next most profitable practice at $10.2 billion dollars.

Tax was the third largest line of service at $9.5 billion dollars

Transaction Advisory Service came in last at $4 billion. This is a separate line of service where in most other accounting firms Transaction Advisory services is just included with Advisory.

Audit$12.6 billion
Tax$9.5 billion
Advisory$10.2 billion
Transaction Advisory Services$4.1 billion
Total$31.4 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 9.2%.

Now lets take a look at revenue by region. The most profitable region for EY was their Americas region. Their Americas region earned $16.7 billion. Their next most profitable region was their EMEIA region with $14.1 billion in revenue. Their third largest region was their Asia Pacific region with $4.3 billion in revenue. Their last region was Japan where they earned $1.2 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  9.1% 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 284,018 employees. This represents an increase of 8.6% as compared to their 2018 fiscal year. They had 261,559 employees in 2018. 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. E&Y used to have the most employees in the big four, but they were passed by Deloitte. Deloitte now has over 300,000 employees.

All in all this is a good year for EY. They are getting closer to breaking the $40 billion dollar club to join PwC and Deloitte.

Carmine Di Sibio who is the new EY global chairman had the following to say about the company’s performance this year:

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. 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.

As I begin my first year as the new EY Global Chairman and CEO, we will be launching the next phase of our strategy to make even greater use of our biggest strengths: EY people, client-centric approach, use of technology and global footprint. I am looking forward to working with the immensely talented and diverse EY people to deliver this strategy.

This seems like a very political statement. He seems to be hedging any upcoming poor performance by saying that there are a lot of negative factors in the economy right now. He didn’t get too specific with any goals and didn’t mention 2020 vision. This is most likely because EY won’t make their 2020 goal of $50 billion. They aren’t even close to $50 billion. They are most likely 3 years away from that. This has to be very disappointing to many people in leadership. It will be interesting to see whether or not EY gets to $40 billion next year.