October 3, 2011 / 7:24 PM / in 7 years

Ernst & Young reports $22.9 billion global revenue

NEW YORK (Reuters) - Ernst & Young ERNY.UL, the world’s third-largest accounting and consulting firm, said its global revenues rose 7.6 percent in fiscal year 2011 as investments in emerging markets bore fruit.

A view of the Ernst & Young headquarters in New York December 20, 2010. REUTERS/Lucas Jackson

Helped by over 20 percent growth in markets such as Brazil and India, revenues rose to $22.88 billion for the fiscal year ended June 30 2011, up from $21.26 billion in 2010.

A $1.5 billion investment program launched five years ago, the bulk of it earmarked for emerging markets, was a key driver of the results, Ernst & Young said in a statement.

Revenues in Brazil grew 26 percent, while India’s rose 22 percent, Africa’s rose 19 percent and China’s climbed 18 percent, Ernst & Young said.

Global head count rose by nearly 11,000 to an all-time high of 152,000.

Ernst & Young is one of the “Big Four” audit firms, ranking behind PwC PWC.UL and Deloitte DLTE.UL and ahead of KPMG KPMG.UL in global revenues.

Like its rivals, Ernst & Young has taken advantage of resurgent demand for consulting and advisory work as revenues from traditional audits leveled off.

Advisory and consulting revenues at Ernst & Young rose 17.5 percent in fiscal 2011 to $4.3 billion, while audit and related services rose 5 percent to $10.6 billion. Revenues from tax services rose 6 percent to $6.0 billion and transaction advisory services revenue rose 7.7 percent to $2.0 billion.

The fast-growing consulting businesses of the Big Four have raised eyebrows among some European Union authorities, who are considering curbs on non-audit services to prevent potential conflicts of interest.

A draft European Union law that was leaked last week called for sharp restrictions on non-audit work.

Reporting by Dena Aubin

0 : 0
  • narrow-browser-and-phone
  • medium-browser-and-portrait-tablet
  • landscape-tablet
  • medium-wide-browser
  • wide-browser-and-larger
  • medium-browser-and-landscape-tablet
  • medium-wide-browser-and-larger
  • above-phone
  • portrait-tablet-and-above
  • above-portrait-tablet
  • landscape-tablet-and-above
  • landscape-tablet-and-medium-wide-browser
  • portrait-tablet-and-below
  • landscape-tablet-and-below