EY Luxembourg announced total net revenues for the Luxembourg practice of €197m for the financial year (FY) ending 30 June 2017 (FY17), up by 10.6% from the €178m net revenues of the previous year.
Alain Kinsch, Country Managing Partner at EY Luxembourg, says: ‘We are very pleased to have achieved a double digit growth this year, up 10.6% compared to last year, corresponding to the highest growth rate of our Luxembourg office over the past four years and a very good performance in what continues to be a complex business environment. I am in particular pleased that we had strong growth in all our practice areas.
Our audit practice has achieved a growth of 10.2%, winning many new audit mandates and continuing a journey of uninterrupted strong growth for more than eight years now, further strengthening our positon as the second largest audit practice in Luxembourg. In addition to continuing to transform our service delivery model through analytics and technologies deployed in our audit practice and bringing value to our clients, we remain focused on executing highest quality audits and thus play a major role in enhancing confidence in the capital markets and meeting the evolving needs of business, regulators and investors.
Our tax practice has also recorded a strong growth of 9.3% which shows our ability to evolve and adapt in the context of the profoundly changing global tax environment. Accompanying our clients to meet their new tax reporting requirements, assisting them to comply with the transfer pricing legislation, embedding technology and digital into their tax function as well as advising clients on the tax impacts of their business activities and transactions has contributed most to our revenue growth.
Our advisory practice has experienced a very strong level of growth, up by 16.7% in the year that has just elapsed. Our local practice has continued to leverage key strategic investments in order to respond to a strong demand from our clients for performance improvement, IT implementation, digital, and business transformation. The regulatory agenda has also been a key driver for our services in the financial sector.
We have launched a transaction advisory practice which advises clients in the areas of Mergers and Acquisitions (M&A), Due Diligence, Valuation and Business Modelling, and built over the past three years a team of 20 highly specialized professionals with a strong background in this service area and have been able to win and deliver high profile mandates. This new service area has also contributed to our growth and we expect to further expand this service in the next years.’
EY Global: key achievements
On a global level, EY announced combined global revenues of US$31.4b for FY17. Overall, FY17 revenue grew by 7.8% in local currency (versus FY16). All EY service lines delivered strong growth in FY17: Assurance grew 4%, Advisory 10.4%, Tax 7.9% and Transaction Advisory Services 15.5%.
With the launch of our Vision 2020 plan in 2013, EY has been on a journey to adapt and transform to respond to the trends shaping the world: globalization and the rise of the emerging markets, demographic shifts, advancing technology and increased regulation. Since the Vision 2020 launch, EY has recorded strong 8.8% compound annual growth.
Moreover to the growth in revenue, overall headcount also increased by 7.3% over FY16, reaching 250,000 people globally.
Additionally, EY’s largest geographic areas achieved strong growth, with Asia-Pacific achieving the highest growth rate of 11.3%. Europe, Middle East, India and Africa (EMEIA) achieved 8.6%, Americas 7%, while Japan was marginally down by 2% over FY16.
EY emerging market practices were again a growth source for the organization, up by almost 9%. This follows several years of strong growth in this area, as EY continues its commitment to these markets. This growth was once again led by India, which grew an impressive 19.6%. Mexico performed strongly, with 14.8% growth, while Greater China once again achieved double digit-growth (13%).
EY recorded strong revenues across various industry sectors with its Consumer Products & Retail and Wealth & Asset Management both achieving double-digit growth. Consumer Products & Retail growth was driven by strong demand for M&A transaction services, digital supply chain reinvention services and SAP transformation advisory services, as well as Wealth & Asset Management was led by digital transformation, customer experience innovation and operational efficiency initiatives and robust levels of M&A.
Talent at EY Luxembourg
In September 2017, 200 professionals joined EY Luxembourg and we expect to recruit again more than 400 professionals in FY18. Our firm has reached 1,350 professionals representing 65 nationalities.
‘This level of recruitment testifies to the strong growth of our activities and our firm commitment to remaining a leader in recruiting and developing world-class talent’, says Alain Kinsch.
With globalization, regulatory changes and advances in technology impacting the working world, EY is embracing technological disruption and changing work patterns to ensure it has the diverse talent to better serve its clients.
‘In addition to hiring young professionals with economic, finance, accounting or tax backgrounds, we have been increasingly recruiting professionals with data science, engineering and digital backgrounds, including for example robotics, in order to assist both us and our clients in the digitalization of our services and processes’, adds Alain Kinsch.
Patricia Gudiño Jonas, People Partner at EY Luxembourg, explains: ‘for the current financial year, we have nearly tripled the recruitment of Advisory professionals in view of higher demands in IT and digital services, confirming our commitment to consolidate our investments in that field and to stay ahead in the digital changes affecting business all around the world. On the assurance practice, we have welcomed 120 young professionals in September– including professionals with backgrounds in data analytics and digital – who will focus on audit and other assurance services and will play an important role in bringing confidence to capital markets as well as availing themselves of new innovative tools and technologies. Finally, our transaction and tax groups have recruited a steady number of professionals to support the growth of their activities. Our new tax professionals are being trained and prepared for facing complex tax issues arising from stricter tax laws and higher scrutiny from tax authorities’.
For the second year in a row, EY has been voted the world’s most attractive professional services employer – and the fourth most attractive employer overall – in Universum’s annual ‘World’s Most Attractive Employer’ ranking.
‘Our people come to EY because they are attracted by our promise to them: “whenever you join, however long you stay, your exceptional EY experience lasts a lifetime”. This award reflects our ongoing commitment to providing our professionals with an exceptional experience, wherever they are in the world. Investments and focus on our people and workplace allow us to attract and retain diverse, talented individuals who gain world-class learning and the leadership skills necessary to solve complex problems’, says Patricia Gudiño Jonas.
‘Our major focus for FY18 is on our people’s career, development and performance, an area where there is real opportunity to improve, accelerate and transform. A new approach to performance management is needed to evolve and transform to stay ahead in a rapidly changing world’, adds Patricia Gudiño Jonas.
EY Luxembourg acknowledges that Digitalization has a disruptive impact on the way we serve our clients and optimize our internal processes. Exceptional Client Services at EY means developing the capability to leverage on clients’ data to accelerate traditional substantive or control testing activities and focus on analysis to deliver valued-added services to our clients. It also means being able to provide for example our clients with access to global repository of Tax information for tax reclaims evaluation or automation to perform VAT compliance reporting. It is about being able to set up robots at our clients for automation of financial processes or supporting our clients with Digital go to market strategies. EY Luxembourg is engaged into an office-wide Digital initiative which aims at upgrading our service offerings in Assurance, Tax and Advisory towards incorporating technologies such as analytics, data mining, web portal, robotics and Artificial Intelligence to the benefits of our clients and towards the self-development of our People. As it is not just about serving our clients but also taking our people into the Digital edge, we are also implementing digital solutions to our internal processes applying first the logic to ourselves. EY Luxembourg is committed to pioneer in the Digital field to provide our clients with leaner, faster and integrated Digital solutions as well as to provide our people the unique experience in entering the digital world every day. Stay tuned and keep a look out for our EY Digital future communications on this initiative especially through our social media.
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