Mexico contributes to record revenues for EY with impressive growth

14 September 2018

Driven by its advisory line and emerging markets, Ernst & Young has recorded strong growth over the past year to amass record global revenues of $34.8 billion – with the Big Four firm achieving 15.3% growth in Mexico. 

EY has continued to close the gap on its Big Four rivals PwC and Deloitte with its eighth consecutive year of growth; its revenues rising by 7.4% in local currency (and 11% in US dollars) against 2017 over the past financial year. Growth was achieved across all of its major service lines and markets, including a 7.4% rise in the Americas and a huge 15.3% spike in Mexico – making the nation one of the firm’s hottest performers.

Altogether, the Americas contributed $15.6 billion to the record haul, with earnings in the US accounting for $14 billion of the sum, for the region to be the firm’s second largest growth market behind the Asia Pacific (10.5%) for both the past year and with respect to its five year annual compound growth rate of 9%. Next to its booming business in India (up 16.3%), Mexico proved to be one of the firm’s standout country markets.

The firm also saw a 4.9% boost to its headcount in the Americas to take its total number to over 70,000 employees in the region – of a now more than 260,000 worldwide (up 5.7% on 2017). Globally, EY has upwards of 700 offices in more than 150 countries, with offices in approximately 80 locations across Central and South America and 16 in Mexico alone. 1,147 new partners were admitted globally last year, with a nearly a third from emerging markets.

Mexico contributes to record revenues for EY with impressive growth

In addition to its activity in emerging markets, the firm’s revenue growth over the past year were also driven by its advisory and transaction advisory lines, which were up 10.1% and 13.9% respectively, against more modest growth of 4.4% and 6.4% for EY’s tax and assurance divisions. The varying results across the divisions is reflected in staff numbers, with 11.7% increases in headcounts for both its advisory and transaction lines.

The total figures across departments for EY however still favored its tax and assurance services, with over $20 billion of its total global revenues coming from these streams. As a breakdown, the firm’s assurance division pulled in over $12.5 billion, and its tax division nearly $9 billion – with the remainder generated through its advisory offering (~$9.6 billion) and transaction department, which achieved revenues of $3.6 billion-plus.

In terms of EY’s advisory segment, this area was strongly supported by developments in Industry 4.0 technologies, including intelligent automation, blockchain, Internet of Things (IoT), data analytics and cybersecurity – with the firm claiming it has internally saved more than 2.1 million people hours and brought higher accuracy to manual processes through the use of 700 developed bots. All up, EY is currently using over 2,000 bots across its business and client services.

With the release of the report, Mark Weinberger, EY’s Global Chairman and CEO, said; “"This year more clients turned to EY for support in their digital and transformation strategies, and for our bedrock services across audit and tax. Our significant and innovative investments are driving growth and supporting the delivery of high-quality services. Most of all, our success is driven by the contributions of 260,000 EY people around the world.” 


Llorente & Cuenca posts double-digit growth in Latin America

19 February 2019

Llorente & Cuenca, a public relations, communications and reputation management consulting firm with a presence in Spain, Portugal and Latin America, has grown its fee income by 6% to $43 million. The offices in South American powerhouses Brazil and Argentina booked double-digit growth. 

The consulting firm looks back at strong performance in Latin America. Whilst the firm walked away from a number of award shows – including the Stevies and the SABREs – with multiple awards, Llorente & Cuenca’s 2018 was defined by a number of strategic decisions in the region. In November 2018, the consultancy pushed through a transformation in its Latin leadership, in a move that is set to better position the firm’s regional and local teams to capitalize on growth opportunities. The business unit now has distinct and separate management structures: North Region, Andean Region and South Region.

“Meeting the challenges of growth of our customers requires management closer to the front line of the business, which this new structure will facilitate both in Europe and in Latin America,” explained founding partner José Antonio Llorente. 

Llorente & Cuenca also invested in its senior team in Latin America. Julieta Suárez was named a Senior Director in the firm’s Miami office, he however also supports the Latin American operations; Juan José Tirado was appointed a Senior Director in Peru; and an advisory board consisting of high-profile leaders was established in Argentina.

Llorente & Cuenca posts double-digit growth in Latin AmericaIn 2018, business volume in Latin America grew by 11%. However due to the depreciation of local currencies against the Euro – for instance in Brazil and Argentina, and more notably Venezuela – growth was stinted by net revenue growth of 1%. With offices in nine Latin American countries, as well as in Miami and Latam Desks in New York and Washington, operations by Llorence & Cuenca in the region currently account for 60% of total revenue for the company. 

Commenting on overall performance, Llorente said: “2018 was a year in which we achieved major goals from our Strategic Plan that will allow us to move forward with a clear focus on our clients. I’m talking about the consolidation of our region-based structure in Latin America, the increased strength of our executive structure and the acquisition of Arenalia in Barcelona.” 

Meanwhile, the offices in Spain and Portugal (Barcelona, Lisbon and Madrid) posted organic growth of 10% (14% including acquisitions). “To this can be added some outstanding work by our almost 600 professionals, who have grown the business of our clients and Llorente & Cuenca to position the firm among the best in the world and the leader in Spain. This growth allows us to continue betting on talent, promoting new partners and increasing the number of our staff.” 

According to a recent analysis, the management consulting industry of South America is worth $2.6 billion.