EY has announced a growth of 12.3% in its turnover generated in Luxembourg, reaching total net revenues for the financial year ending 30 June 2022 of €325 million (up from €286 million in 2021).
EY Luxembourg reported a strong fiscal year across all sectors. "Our practice has been growing steadily for the past ten years and I am proud this year again, to announce a double-digit growth. This revenue increase can be seen across all service lines. Our most solid service lines, Assurance and Tax, are growing at pace, innovating continuously to adapt to a changing regulatory environment. Our Consulting and Strategy & Transactions services had an exceptional year, accelerating their growth and footprint across all sectors", stated Olivier Coekelbergs, Country Managing Partner and CEO of EY Luxembourg.
"The strong alternative asset management sector in Luxembourg, our talented and dedicated employees who put our clients at the heart of everything they do, as well as our anchorage into the local business ecosystem, are responsible for this success. Despite the current uncertainty and challenges facing the global economic environment, I am confident that our collective resilience, entrepreneurial spirit and our Ambition 2026 strategic plan will be our assets for continuing success", Olivier Coekelbergs continued.
The Assurance practice experienced growth of 11.1%. The increased demand for further assurance in the financial sector and the rising importance of assurance of non-financial information were the main revenue drivers in 2022. "Thanks to the strength of our integrated network, EY's Assurance practice has won large mandates during the year. Our constant focus on quality and continued journey in digitalising the audit function – by developing automation, AI and robotics solutions – allow us to be a step ahead of the increasing regulations and requirements in the audit profession. Our future-driven approach and leadership position in audit enabled us to adjust to the evolving aspirations of our people and to attract talent in a challenging market", noted Olivier Lemaire, Partner and Assurance Leader at EY Luxembourg.
The consulting practice continued its expansion with a significant revenue increase of 26% for the fiscal year ending 30 June 2022. "By leveraging our global industry alliances with, among others, Pega, Microsoft or SAP, we have been awarded large business projects, allowing us to create meaningful change for our clients. Besides these important digital transformation projects, current and next steps in our growth strategy include responding to a high demand for managed services, regulatory consulting, cybersecurity, and ESG consulting. I am proud of having achieved this record growth alongside my teams, building on the trust of our clients – not only in the financial sector but also in the commercial, private and public sectors", said Laurent Moscetti, Partner and Consulting Leader at EY Luxembourg.
EY Luxembourg’s tax practice recorded a solid revenue increase of 9% for the year ended 30 June 2022, mainly boosted by global compliance reporting, indirect tax, operational tax and also transactions, (re)structuring support, digital tax and managed services. "Our team has been delivering leading-edge, digitally enabled solutions in tax and people advisory services to our clients, guiding them in adapting to profound changes in the international tax environment, changing fiscal landscape and increasingly complex tax compliance procedures. With the addition of a new Partner, we have extended our expertise in operational tax services. Finally, ESG topics with responsible investments and governance objectives remain on top of client agendas", commented Bart van Droogenbroek, Partner and Tax Leader at EY Luxembourg.
The Strategy & Transactions (SaT) services practice delivered a strong growth of 44.2% in fiscal year 2022. "Thanks to a growing and highly engaged team which has been reinforced by two additional Partners, our practice has recorded impressive revenue growth across all services. The M&A market has been supportive, together with our valuation, and modelling & restructuring services to the investment fund industry. Significant milestone wins and new long-term mandates have been secured and will positively impact activities. In view of current challenges on a macro-economic level, further investments and a stronger focus on expert resources, such as real estate transaction advisory or M&A transaction support services, will be needed", concluded Christophe Vandendorpe, Partner and Strategy & Transactions Leader at EY Luxembourg.
EY announced combined global revenues of $45.4 billion for the financial year ending June 2022, an increase of 16.4%. This marks one of the most successful years in the history of the organisation with the highest growth seen in nearly two decades. All EY service lines recorded strong revenue growth. Consulting experienced exceptional growth of 27.1%, and Strategy & Transactions also grew by a significant 25.4%. Assurance grew by 8.9% and revenues from the Tax service line rose by 10.5%. Overall, headcount increased by 17% to 365,399 people globally.
A total of 94 countries and 53 languages are represented among the 1,800 people working at EY. A record number of 530 new hires have joined EY Luxembourg since the start of the current fiscal year 2023. More than 850 new professionals will have been hired before the end of June 2023, reinforcing the firm in its growth aspirations.
During the fiscal year ending 30 June 2022, twelve new Partners and two Directors were promoted. The leadership team continues to grow with the recruitment of six new Partners during fiscal year 2022 and the beginning of fiscal year 2023: Aude de Roquancourt, Partner, who joined the accounting compliance and reporting practice and is extending EY’s operational capacities and providing additional streamlined financial transformation services to clients of all industries; Emmanuel Mareschal, Partner, who joined the Commercial and Private Sector Assurance Practice, focusing on multinational corporations; Lars Goldhammer, Partner, who will join the International Tax and Transfer Pricing team, focusing on the Private Equity sector; Razvan Mara, Partner, who joined the Real Estate Assurance Practice, focusing particularly on international accounts, including both regulated and non-regulated structures; Régis Karim Laban, Partner, who supports the Government and Public Sector business development strategy with a focus on European Institutions; Rosheen Dries, Partner, who joined EY as the Wealth and Asset Management Tax Leader.
Looking ahead, EY leaders have recommended that the organisation evolves into two distinct, multidisciplinary organisations. One would be a global network of multidisciplinary member firms committed to assurance, tax and advisory services with all the capabilities required to deliver high-quality audits and the other would be a new global corporate entity comprising Consulting, Strategy & Transactions (SaT), the majority of Tax and Managed Services. The expectation is that EY will be able to better serve its people, clients and broader stakeholders in this unique opportunity to redefine the future of professional services. Both organisations will be values-focused and purpose-driven, preserving EY's culture and commitment to diversity, equity and inclusion. EY will now engage in more detail with its member firm partners, whose votes will determine whether the firm moves forward.