PwC’s total global revenues rose by over 7% to $35.9bn (£28.1bn) for the fiscal year ended on 30 June 2016, but it faltered behind Big Four rival Deloitte whose network reported record revenues of $36.8bn (£28.8bn) over the same period
Despite what it termed ‘fierce competition and price pressure across the world’, PwC’s $15.3bn assurance business grew by 6% over the year. It saw an 8% hike in advisory revenues, which reached $11.5bn, reporting strong demand for cyber security, digital and data and analytics services resulting from its recent investments in specialist operations.
Revenues from tax operations increased by 7% to $9.1bn, driven by a strong market for deals and continuing demand for compliance, corporate consulting and business structuring work globally.
PwC reported that more revenue growth is coming from developing markets – particularly Asia where revenues grew by 10%, with strong performances in India and China.
In North America and the Caribbean revenues grew by 8% boosted by a strong performance from the US, which remains the largest market, while in South and Central America revenues were up 9%.
In comparison, growth in western Europe was up 6%. Central and eastern Europe posted revenue growth of 10%, and also saw the largest increases in workforce over the year, alongside the Asian market.
The network of firms in 157 countries now has a global headcount of more than 223,000 people. There was a record level of new joiners, with 58,081 people added over the financial year, including 26,780 graduates of whom just over half were female. In addition, 665 partners were admitted across the PwC network with, for the third year in a row, female partner promotions increasing, now reaching 27% of total new partners.
Bob Moritz, chairman of PricewaterhouseCoopers International Ltd, said: ‘Our revenue growth in FY16 across all major markets and businesses is testament to our fundamental purpose of building trust and solving problems.
‘To secure future growth, we are investing heavily in technology to enhance the quality and impact of our services and make the best use of the skills of our people.
‘Whether it’s the tax and audit services of the future, blockchain or augmented reality, we are implementing a strategy to meet the long-term needs of our stakeholders and the career aspirations of our people.’
The firm’s UK business reported an 11% increase in its UK revenues this year, reaching £3.4bn in 2016, up from £3.08bn the previous year, while profits rose 1.3% to £829m. However, distributable profit per partner fell 5% to £706,000 as the firm invested in people and technology.
PwC’s FY16 global annual review is online here.
