Accountancy Magazine
E&Y global revenues fall 6.8% in USD
Income shrinks by 0.2% in local currency
30 September 2009
Ernst & Young today announced a 6.8% drop in global revenues with turnover plummeting from $23bn (£14.3bn) to $21.4bn for the year ended 30 June 2009.
But the dramatic fall reflects the resurgence of the dollar over the past 12 months as in local currency the network’s year-on-year income shrank a more modest 0.2%.
Japan was the biggest success story among the firm’s five geographic areas, notching up a growth rate of 7.5%. The Americas were the worst performing region with revenues falling by 3.2%.
Transaction advisory services was the worst hit of the network’s service lines, reporting a revenue drop of 6.9% after the financial crisis led to the volume of mergers and acquisitions transactions shrinking by up to 50% in some markets.
Tax was the best performing service line, growing by 1.8%.
Overall the network’s workforce shrank by 0.1% with the Americas being the most impacted region as a result of a workforce reduction of 4.5%. Japan’s workforce grew by 12.1% while the workforce within the Europe, Middle East, India and Africa region grew by 1%.
Describing the year as ‘challenging’, E&Y global chairman and CEO James Turley said: ‘Flat revenues certainly don’t tell the whole story of this year, as we continued our investments in people and in building our markets, while helping our clients with the unusual and difficult issues they faced. The 2009 financial year will be remembered more for these activities than for top-line results.’
But the dramatic fall reflects the resurgence of the dollar over the past 12 months as in local currency the network’s year-on-year income shrank a more modest 0.2%.
Japan was the biggest success story among the firm’s five geographic areas, notching up a growth rate of 7.5%. The Americas were the worst performing region with revenues falling by 3.2%.
Transaction advisory services was the worst hit of the network’s service lines, reporting a revenue drop of 6.9% after the financial crisis led to the volume of mergers and acquisitions transactions shrinking by up to 50% in some markets.
Tax was the best performing service line, growing by 1.8%.
Overall the network’s workforce shrank by 0.1% with the Americas being the most impacted region as a result of a workforce reduction of 4.5%. Japan’s workforce grew by 12.1% while the workforce within the Europe, Middle East, India and Africa region grew by 1%.
Describing the year as ‘challenging’, E&Y global chairman and CEO James Turley said: ‘Flat revenues certainly don’t tell the whole story of this year, as we continued our investments in people and in building our markets, while helping our clients with the unusual and difficult issues they faced. The 2009 financial year will be remembered more for these activities than for top-line results.’
CCH is a trading name of Wolters Kluwer (UK) Limited. Registered in England & Wales, No. 450650. Registered office: 145 London Road, Kingston upon Thames, Surrey KT2 6SR. Wolters Kluwer (UK) Ltd is authorised and regulated by the Financial Services Authority for general insurance business.