PwC posts a 10% rise in FY15 global revenues to US$35.4 billion

Thursday 08 October 2015 17:08
PwC's global network reported total gross revenues of US$35.4 billion for the fiscal year through June 2015, up 10 percent at constant exchange rates.

That was higher than the US$34 billion it earned in the previous year and the strongest year-on-year growth the network has seen since FY07. Revenue growth was strong across all lines of business and in all geographic regions.

PwC's strong performance came despite fierce competition, geopolitical uncertainty and "a continuing patchy economic picture," said Dennis M. Nally, Chairman of PricewaterhouseCoopers International Ltd.

"Our strongest growth for eight years is a result of the significant investment we have made in recruiting the best people, enhancing the quality of our services and building new product offerings such as data analytics. We have also continued to make key strategic acquisitions to complement and expand our core business.

"Technology is transforming all aspects of our lives and every business, so we're working in alliances with market leaders, such as Google and others, to bring the latest and best technology thinking to our clients.

"The PwC brand has been acknowledged as the strongest professional services brand in the world and this reputation is built on the energy, enthusiasm and quality of our 208,000 people and their commitment to working with all of our stakeholders to build trust and to solve important problems.

"There's much to be proud of and I think we have strong momentum going into FY16 with many significant accomplishments to build on. All of our lines of business and geographic regions are growing, the acquisition of Booz & Company (now Strategy&) has provided a major boost to our capabilities and we're now the leading organisation in our ability to provide services ranging from strategy right through to execution. We recruited 53,000 new people last year and plan to recruit even more in FY16 from a broader range of countries and with a wide range of skills, as we expand our capabilities to match the increasingly diverse demands of our stakeholders.

"While there is large variation around the world and some countries will continue to struggle, overall we predict stronger global economic growth of 3.6% in 2016," Nally added.

Regional results

Geographically, PwC's growth was strongest in the Middle East and Africa, up 16% in FY15. This was closely followed by North America and the Caribbean at 12%. PwC US, the network's largest firm, saw a 10% rise in revenues to US$12.2 billon.

Growth in Australasia and the Pacific Islands region was up by 11%, led by Australia. Revenue in Western Europe grew 8% the same pace as South and Central America while Central and Eastern Europe rose 6%.

Sira Intarakumthornchai, CEO for PwC Thailand, said Thailand helped contribute to the network's 9% growth in Asia, which resulted in revenue of US$4.1 billion for the region.

"Despite the challenging economic environment, we were able to overcome the uncertainties and manage to get strong results in a very competitive marketplace," Sira said.

"While the economic situation in China looks more challenging in the year ahead, we're still optimistic over the long term and believe we're well placed to enjoy even stronger growth going forward."

As it increases revenues, PwC continues to focus on recruiting the best talent. In FY 2015, PwC firms added 53,049 employees, including 24,600 graduates, bringing its total global workforce to more than 208,000.

Lines of business

PwC's Assurance practice, its most significant business and the bedrock of the network's operations and reputation across the world, grew by 6% to US$15.2 billion. This was in the face of a very competitive market and the changes taking place in the European audit market due to the introduction of mandatory audit firm rotation.

In addition to a volatile market for audit around the world, there is increasing demand for broader Assurance services, particularly in assurance over business risks.

PwC's investment in technology continues to expand the market for Assurance services into new areas such as IT and data assurance and security. In FY15 alone, it invested US$450 million to further enhance the quality of assurance services, develop innovative tools and technologies, and train its people.

Revenues from PwC's Advisory operations grew very strongly in FY15, increasing by 18% to US$11.2 billion. The buoyant prospects for Advisory business, which accounted for more than 30% of worldwide revenues, is expected to continue in the future.

The acquisition of Strategy& (formerly Booz & Company) in April 2014 has helped cement its position as the leading organisation which provides advice from strategy through execution. The firm now has more than 3,000 strategy consulting professionals under the Strategy& brand.

PwC's Tax practice grew 7% to US$8.9 billion in FY15. Tax operations benefited from increased work related to mergers and acquisitions due to the robust deals environment and strong demand for transfer pricing work globally.

In FY15, PwC firms and people donated nearly US$58 million to community activities and more than 58,000 PwC people donated more than 537,000 hours in professional services and skilled volunteer activities.