Deloitte and EY book growth and hit global revenue milestones
Deloitte and EY have become the latest Big Four members to release their global results for the last financial year. In spite of a tough economic period, both firms enjoyed solid revenue growth over 12 months.
Regardless of the global coronavirus crisis and subsequent recession, a number of the world’s largest professional services brands have still come through the last two years comfortably. Such is the size and reach of Big Four firms Deloitte, EY and PwC that they remain some of the globe’s most valuable brands – and still managed to record income growth in the middle of the pandemic.
PwC announced earlier in the summer that it had enjoyed 2% revenue growth over the last financial year. Now, Deloitte and EY have both released their reports on the last financial year, declaring even more impressive figures amid the global pandemic and financial slump.
EY enjoyed a boost of 7.3% in revenues in the 12 months leading to June 2021. This pushed its global income to $40 billion, with growth across all service lines and geographical areas. In particular, strategy wing EY-Parthenon recorded revenue growth of 19.6%, with EY-Parthenon teams supporting clients across the world to successfully transform their businesses amid the overnight shift to virtual working. EY also boosted its growth by building its ecosystem of strategic alliances. Nine 9 new alliances were announced in the last 12 months, expanding capabilities in industry solutions, digital, cybersecurity and supply chain, through agreements with Fadata, Nottingham Spirk, Tanium and CrowdStrike.
Carmine Di Sibio, EY Global Chairman and CEO, said, “EY people have worked hard to support clients and communities in the 2021 financial year, delivering an outstanding set of results, through a challenging year. EY teams remain focused on the EY NextWave strategy, which is built on an ambition to build long-term value for all stakeholders.”
With its growth, EY also announced a new three-year expansion plan to build on the momentum. This includes a combined investment spend of $10 billion, which supports the EY NextWave strategy launched last year. These investments will further expand capabilities to help EY clients, the people who serve them, and the communities in which EY teams operate, to successfully navigate unprecedented global challenges. Meanwhile, the firm will aim to attribute $5 billion of ecosystem-related revenues to sales with, and through, alliance partners, based on market leading EY technology offerings and platforms.
Di Sibio added, “A record $10 billion three-year investment plan in vital areas such as audit quality, strategy, and sustainability, will continue to help EY clients, EY people and communities innovate and transform. The world is changing fast and the EY organisation is ideally placed to help stakeholders fulfil their need to succeed in a manner which is equitable and sustainable, and which respects the environment.”
Deloitte
Meanwhile, at Deloitte, the firm saw global revenues hit $50.2 billion – a 5.5% on last year’s figures. In the 12 months leading to May 2021, the firm’s best performing business was financial advisory – which grew at 12.9%. This was followed by audit and assurance, which grew 6.1%. Financial services clients contributed 27% of Deloitte’s total revenue, making it the firm’s strongest service line. Geographically, Deloitte enjoyed its strongest performance in Asia Pacific grew fastest at 14%, followed by Europe/Middle East/Africa, which grew at 11.3%.
Punit Renjen, Deloitte Global CEO, commented, “Events of this past year have had an unprecedented impact on the world and our organisation… While the past year was difficult and defined by uncertainty, it has shown what can be achieved at speed and scale when businesses, governments, and society work together to tackle tough global challenges. This cooperative approach is a model that we must continue to build on.”
Deloitte similarly helped build for success by expanding its global alliance and ecosystem business. The segment grew by 24% - and the benefits of its ecosystem were seen across Deloitte’s operations. Drawing on its alliances with 15 leading technology companies, for example, the firm’s auditing wing orchestrated ecosystems to deliver integrated technology solutions for clients in innovative ways during the pandemic.
Renjen added, “Deloitte embraces the opportunity to lead by example, to drive change through cooperative efforts, and to find and invest in better solutions to business and societal challenges. Our focus during the past year has been on deploying our global capabilities to help clients respond, recover, and thrive during the pandemic.”
