PwC posts $41.3B in worldwide revenue

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PwC Global firms earned gross revenues of $41.3 billion in the fiscal year ended June 30, growing 7 percent in local currency terms, and by 10 percent in U.S. dollars.

The firm said that investments in “quality, new technologies, services and talent” helped boost revenue across the board. Growth was strongest in Asia, with revenues rising 15 percent, in the Middle East and Africa, with revenues rising 12 percent, and in Central and Eastern Europe, up 10 percent. Australasia and the Pacific grew by 7 percent, Western Europe by 6 percent, and the Americas by 4 percent – though the firm noted a “particularly strong performance” in the U.S.

“This impressive growth is due to our focus on the marketplace and the hard work, professionalism and dedication of our 250,000 people who continue to develop and innovate to meet the changing needs of our stakeholders around the world,” said PwC Global chairman Bob Moritz said in a statement. “In addition, everything we do is guided by our focus on quality and our purpose to build trust in society and solve important problems.”

In terms of service areas, PwC’s advisory business grew 10 percent, to $13.8 billion, with particularly strong growth in deal services, and strategy, management and technology consulting. (For more details, see tables below.)

Tax and legal services revenues, meanwhile, grew by 8 percent to $10.4 billion, driven by changes to international and domestic tax systems, and by the firm’s rapid expansion of its legal capabilities – it now has over 3,500 lawyers in over 90 countries. In late September, it announced a strategic alliance between U.S. immigration law firm Fragomen, Del Rey, Bernsen & Loewy and PwC’s U.K. member firm.

The firm’s assurance operations grew 4 percent, to $17.1 billion, in what the firm described as an “intensely competitive” market, with growth in all of its major markets, including those with mandatory audit firm rotation. It also noted that, with 107,000 people, it is the largest audit and accounting network in the world.

“Demand for our services continues to grow across all regions and industries, which is testament to the quality of our work, and the investment we have made in anticipating the changing needs of our stakeholders with the introduction of new and enhanced services, said global chief operating officer Carol Sawdye, in a statement.

People and investments

Over fiscal 2018, the firm added 64,776 staff, bringing its headcount to more than 250,000 people. Of the new employees, 27,000 were recent graduates, and 33,000 were experienced hires. Staff numbers grew the most in Asia, at 14 percent, and Central and Eastern Europe, at 10 percent.

PwC firms admitted a record 739 partners worldwide, 30 percent of whom were women (who made up “nearly half” of all new employees). The firm noted that its percentage of female partners has grown to 20 percent, from 13 percent in 2006.

Besides investing in staff, the global network highlighted two other areas of focus: technology and community.

“Technology is redefining PwC and the quality and relevance of the services we provide, just as it is reshaping the world of business,” Moritz said in a statement. “By 2019 we will have invested over $1 billion enabling our business in the cloud, helping maximize the quality and impact of our services and solutions.”

In terms of community investments, PwC has set a global target of investing in the future and growth of 15 million people, NGOs and social and micro enterprises to help them maximize their potential by 2022.

In 2018, the firm reached 3.2 million people, NGOs and social and micro enterprises, thanks to more than 60,500 of its staff contributing over 850,000 hours.

It also announced a commitment to reducing its carbon footprint, with plans to offset emissions from travel in 2019, and to get 100 percent of its offices’ electricity from renewable sources by 2022.

Aggregated revenues of PwC firms by geographic region (US$ millions)


FY18 at FY18 ex. rates
FY17 at FY17 ex. rates
% change
Americas
17,454
16,800
3.9%
Asia
5,675
4,900
15.8%
Australasia and Pacific
1,810
1,650
9.7%
Central and Eastern Europe
918
776
18.3%
Western Europe
13,864
12,192
13.7%
Middle East and Africa
1,559
1,362
14.5%
Gross revenues
41,280
37,680
9.6%

Aggregated revenues of PwC firms by service line (US$ millions)


FY18 at FY18ex. rates
FY17 at FY17 ex. rates
% change
Assurance
17,056
15,965
6.8%
Advisory
13,778
12,253
12.5%
Tax & Legal
10,446
9,462
10.4%
Gross Revenues
41,280
37,680
9.6%
Expenses and disbursements on client assignments
(2,643)
(2,415)
9.5%
Net Revenues
38,637
35,265
9.6%
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