- Total Network Revenues Rise
- Advisory Business Returns to Strong Growth
PwC reported aggregate gross revenues of US$26.6 billion for its worldwide network of member firms for the fiscal year ended 30 June 2010, showing a slight increase in revenues at constant exchange rates. In US dollars PwC's FY2010 aggregate network revenues rose by 1.5 per cent from FY2009.
Revenues for PwC firm's flagship Assurance services held up well, given the economic conditions, at US$13.3 billion, down only very slightly (1.3 per cent) from the previous year. Despite the continued slow economy, demand increased for Assurance services, but the rise in demand was more than offset by ongoing pricing pressure in a fiercely competitive market. PwC's Assurance operations continued to invest in service quality and maintained their status as the largest assurance practice in the world.
Demand for Tax services also improved during the course of the year as the global economy strengthened. Tax revenues, however, ended the year down 2.9 per cent to US$7.1 billion held back by the worldwide slowdown in corporate deals and restructuring activity.
PwC's Advisory businesses returned to healthy growth in FY2010 with revenues of US$6.2 billion, up 7.9 per cent over the previous 12 months. PwC's consulting businesses grew particularly strongly up 15 per cent. Advisory results also reflected an improvement in the economic environment over the course of FY2010, as well as revenues from a number of strategic acquisitions. PwC Advisory is expected to remain a key source of future growth.
"The increase in revenues is a creditable achievement and PwC firms in our key countries consistently maintained their positions as market leaders," said Dennis M. Nally, Chairman PricewaterhouseCoopers International. "This performance reflects the commitment and dedication of our people, and the ongoing effort of PwC firms to manage through the downturn without losing sight of the need to keep focused on the potential for renewed growth.
"The global economy has taken longer to recover than many of us anticipated, and sluggish business conditions in many parts of the world continue to weigh on our clients and on PwC," said Mr. Nally. "There were some signs of improvement in the last quarter of FY2010 and we are hopeful of continued growth through the remainder of FY2010 and beyond. So far in FY2011 we have seen encouraging growth in volumes of business right across our range of services."
Geographically, like the overall economic recovery, results for PwC firms varied widely by region. Revenues grew by 8.2 per cent in Asia, and by 8.5 per cent in the Middle East and Africa. Revenues remained steady in Western Europe but slipped slightly (1.7 per cent) in North America and the Caribbean.
Looking forward Mr. Nally said: "The new economic and business realities emerging in the recovery demand a sharpened focus on providing distinctive, first quality service for our clients, while understanding the need to remain very cost effective in the current economic climate. PwC has recently introduced changes in our branding, including a renewed brand promise that will be the focus of all our 162,000 people around the world - to build relationships with clients that help them to create the value they seek."
Notes to editors:
All percentage numbers in the body of the press release are growth at constant exchange rates unless otherwise stated.
Global Gross Revenues
Year ended June 2010
Variances -
fav/(unfav)
FY09 v
at FY09
FY09 FY09
Actual ex. v FY09 at ex.
Rates FY10 ex Rates
Geographic Revenues $m $m Rates % %
------------------------ ------ ------ ----------- -----
Asia 2,935 2,627 8.2% 11.7%
------------------------ ------ ------ ----------- -----
Australasia and Pacific 1,293 1,176 -3.3% 10.0%
------------------------ ------ ------ ----------- -----
Central and Eastern
Europe 726 778 -5.1% -6.6%
------------------------ ------ ------ ----------- -----
Western Europe 11,062 11,155 -0.6% -0.8%
------------------------ ------ ------ ----------- -----
Middle East and Africa 823 704 8.5% 16.9%
------------------------ ------ ------ ----------- -----
North America and
Caribbean 8,952 9,032 -1.7% -0.9%
------------------------ ------ ------ ----------- -----
South and Central
America 778 699 11.9% 11.3%
------------------------ ------ ------ ----------- -----
Total 26,569 26,171 0.3% 1.5%
------------------------ ------ ------ ----------- -----
------------------------ ------ ------ ----------- -----Variances -
fav/(unfav)
FY09 v
at FY09
FY09 FY09
Actual ex. v FY09 at ex.
Rates FY10 ex Rates
Line of Service Revenues $m $m Rates % %
------------------------ ------ ------ ----------- -----
------------------------ ------ ------ ----------- -----
Assurance 13,273 13,290 -1.3% -0.1%
------------------------ ------ ------ ----------- -----
Advisory 6,206 5,668 7.9 9.5%
------------------------ ------ ------ ----------- -----
Tax 7,090 7,213 -2.9% -1.7%
------------------------ ------ ------ ----------- -----
------------------------ ------ ------ ----------- -----
Total 26,569 26,171 0.3% 1.5%
------------------------ ------ ------ ----------- -----
Foot note to table: FY10 revenues are expressed in US dollars at average FY10 exchange rates. FY09 revenues are shown at average FY09 exchange rates for continuing operations. Gross revenues are inclusive of expenses billed to clients. Fiscal year ends 30 June. FY09 revenues have been reallocated between service lines to reflect the current organisation.
PwC firms provide industry-focused assurance, tax and advisory services to enhance value for their clients. More than 161,000 people in 154 countries in firms across the PwC network share their thinking, experience and solutions to develop fresh perspectives and practical advice. See pwc.com for more information.
PwC has changed its name from PricewaterhouseCoopers to PwC. 'PwC' is written in text with a capital 'P' and capital 'C'. Only when you use the PwC logo is the name represented in lower case.
"PwC" is the brand under which member firms of PricewaterhouseCoopers International Limited (PwCIL) operate and provide services. Together, these firms form the PwC network. Each firm in the network is a separate legal entity and does not act as agent of PwCIL or any other member firm. PwCIL does not provide any services to clients. PwCIL is not responsible or liable for the acts or omissions of any of its member firms nor can it control the exercise of their professional judgment or bind them in any way.
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CONTACT: PwC
Mike Davies
+44 207 804 2378
mike.davies@uk.pwc.com
Mike Ascolese
+1 (646) 471 8106
mike.ascolese@us.pwc.com