EY revenue rises 11pc to $2.7b in ‘challenging year’
EY has posted revenue of $2.7 billion, up a solid 11 per cent, during 2022-23 described as a “challenging year” for the firm as growth slows in consulting and while the wider profession faces increased scrutiny at the federal level due to the PwC tax leaks scandal.
Firm profits were up 5.4 per cent from the previous year but partner income, which has not been finalised, is expected to be “slightly down” on last year, EY Oceania chief executive David Larocca said. Average partner pay at the firm was $950,000.
“Financial year 2023 has absolutely been a challenging year for EY and our profession,” Mr Larocca said. The results were “an outstanding achievement by any measure, but it’s particularly positive given these challenges.”
Demand for the firms services was strong in the second half of the FY23 than in the first half, the reverse of the trend reported by KPMG when its results were released last week.
“[Our] second half was stronger than our first half. But what we’ve seen in consulting, certainly in the financial services space, has been more challenging in the year gone by,” he said. “So that’s contributed to the result. We have a large consulting footprint there.”
Mr Larocca also said that the firm’s strategy and transaction team had “seen continued transaction activity, particularly domestic private equity funds.”
The result places the firm behind Deloitte out of the big four consulting firms, but ahead of KPMG.
Deloitte reported an increase in FY23 income of 14 per cent, up to $2.85 billion, in the year to May, while KPMG reported an increase in revenue of more than 9 per cent, to $2.38 billion. PwC, which is still dealing with its tax leaks matter, has yet to report its FY23 results.
The revenue figures represent
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