Global strategy pays off for E&Y

Ernst & Young’s global integration strategy has driven a 16.2% rise in revenue in the 2008 reporting year.

All service lines recorded a jump in profits with the global revenue totalling $24.5bn (£14bn).

The merger of 87 practices across Europe, the Middle East, India and Africa, and an additional 15 practices throughout Asia has propelled the year-on-year revenue increase to US$3.4bn - a growth rate of 16.2%.

EMEIA’s revenues went up from $9.6bn to $11.4bn, which represents an increase of 18% in dollar terms but a more modest 7.9% in local currency terms.

According to James S Turley, global chairman and CEO of Ernst & Young, the integration strategy has helped quantify the return on investment.

The strongest revenue reported is across the Asia-Pacific region, where a 34.3% increase was recorded, to $3.3bn. Within this region, Japan increased revenues by 42.6%, the Far East area grew by 32.3% and the Oceania area rose by 29%.

According to John Ferraro, global chief operating officer at Ernst & Young, the firm is mid-way through a four year $1bn investment program in penetrating emerging global markets.

‘These markets represent some of our best growth opportunities,’ Ferraro said.