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EY has announced a 13 per cent increase in revenue to $2.13 billion, despite the economic headwinds brought on by COVID-19.
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EY grows revenue by 13% amid downturn
06 August 2020
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8 minute read
The big four firm recorded $2.13 billion in revenue for the 12 months to 30 June, a 12.7 per cent increase on the previous corresponding period.
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The better-than-expected revenue growth has also seen the firm repay staff a portion of COVID-19 pay cuts.
EY chief executive Tony Johnson said the firm’s “incredibly strong” assurance business — which grew by 10 per cent — and the growth of its risk advisory by 20 per cent ensured that it was able to weather the economic downturn caused by COVID-19.
“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,” Mr Johnson said.
“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.”
EY also revealed that its tax practice, including people advisory services and EY Law, grew by 8 per cent, with its mergers and acquisitions businesses recording a 6 per cent increase.
Its financial services business also performed well, growing by 20 per cent from advising clients on complex transactions, actuarial, financial crime, cyber and assurance programs.
Mr Johnson also pointed to three of the firm’s acquisitions over the last financial year — Aleron, Cadence Economics and Port Jackson Partners — as one of the factors contributing to its strong results this year.
“While we must be appropriately cautious about the immediate future, we are still on the lookout 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,” Mr Johnson said.
“Our plan will not change: focusing on saving lives, saving jobs and managing our business for the long term.
“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.”
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