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Led by its consulting and strategy divisions, EY rebounds despite lingering COVID concerns.
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EY revenue grows 18 per cent, delivers $70m in bonuses
05 August 2022
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EY Australia doubled its revenue growth to 18 per cent over the last financial year, to $2.75 billion, and handed out 70 million in “record bonuses” the company said on Thursday (4 August).
That compares with a 2021 revenue increase of 9 per cent to $2.31 billion and comes despite “ongoing disruptions caused by the COVID pandemic”, said Oceania chief executive David Larocca.
The result delivered on growth forecasts, Mr Larocca said although he declined to comment on whether the widely anticipated separation of its audit arm would go ahead.
The $2.75 billion result puts EY ahead of Deloitte’s $2.5 billion revenue reported in June, with PwC and KPMG figures still to come.
Mr Larocca said the result enabled EY to create 900 additional jobs over the period and reward its current personnel.
“These results have enabled us to invest an additional $150 million in our people, including upwards of $70 million across record bonuses, bringing forward promotions and salary rises by three months, additional COVID leave, parental leave and home office assistance,” Mr Larocca said.
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In May, EY Australia appointed 90 new partners, including 48 promotions and 42 direct appointments, and over the year named 24 associate partners.
EY said the strong return from its consulting operation, which brought in $1.09 billion for a 24 per cent increase, demonstrated how the firm’s “unique approach to transformation – value focused, business led, people-powered and technology enabled – is delivering results for our clients”.
Strategy and transactions revenue rose 26 per cent, to $420 million, thanks to sustained merger and acquisitions activity, while its tax and law services increased billings to 670 million, up 18 per cent, due to its “best-in-class digital tax compliance and legal managed services”.
Assurance services, which grew 8 per cent to $570 million, were “driven by our market-leading audit practice” and were endorsed by “ASIC external reviews and internal global and Australian reviews”. A strong performance by EY’s climate change and sustainability services practice was another factor.
In line with EY’s own environmental commitment “we’re well on our way to achieving [our own] target of net zero by 2025”, Mr Larocca said, while as part of its diversity goals it had hired more women than men in 2021–22 with the result that 52 per cent of Oceania staff are now female.
However, EY refused to comment on whether it would proceed with the division of its business by splitting off the audit arm. Such a split would avoid conflicts of interest concerns when EY was conducting non-audit work for its audit clients.
“It’s been a challenging but extremely rewarding 12 months and I’m excited by the future,” Mr Larocca said.
“We predicted strong double-digit growth for this year and have more than achieved that. By maintaining our strong focus on investing in our people and in future growth, I have every confidence these outstanding performance results will continue.”
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