PricewaterhouseCoopers has announced that its total gross revenues for its worldwide network of firms rose to a record US$28.2 billion for the fiscal year ended 30 June 2008, an increase of 8 per cent at constant exchange rates. At variable rates of exchange, growth was even higher at 14 per cent.
PricewaterhouseCoopers also reported that its global network of firms has voted to adopt a new organisational model, dividing the network into three major clusters led by the senior partner of the leading national firm in each cluster. The East Cluster will be led by Silas Yang, senior partner of PwC China; the Central Cluster by Ian Powell senior partner of PwC UK, and the West Cluster by Dennis Nally senior partner of PwC US.
Revenue growth remained buoyant across all three of PwC’s main service offerings. Growth from PwC’s advisory business increased by 14 per cent to US$6.9 billion, driven by good performances in all major markets, a fast maturing consulting business which continues to grow market share and a very strong performance from transactions related business, despite the slowing market for mergers and acquisitions.
Revenues from tax operations were up 13 per cent to US$7.5 billion, reflecting strong growth across the full range of service offerings. For the first time tax and advisory accounted for more than half of PwC’s global revenues, 51 per cent, compared with 48 per cent in FY2007 and 44 per cent four years ago.
PwC’s assurance practice reported revenues of US$13.8 billion, up 3 per cent, reflecting the difficult market conditions, a slowdown from the extremely high growth in this area in previous years, changing regulatory requirements and the very competitive nature of the assurance market.
All PwC member firms across the world increased revenues in FY2008 with many major regions boasting strong growth rates. There were particularly good results from firms in Asia, which saw revenues increase by 21 per cent, while firms in the Middle East and Africa enjoyed revenue growth of 20 per cent.
Firms in Central and Eastern Europe also performed well, with revenues up 20 per cent, while Western Europe continued to demonstrate strong growth, with revenues up 8 per cent. North American firms saw revenues grow by just 2 per cent reflecting difficult economic conditions.
Revenue growth was robust in some key developing markets with particularly impressive results in China, India, the Middle East and Central & Eastern Europe. In addition some of the developed markets such as Australia, Germany, Japan and Korea also grew very strongly.
“Our member firms around the world continued to produce good results in FY08 reflecting our strategic focus on key emerging economies, and PwC’s strong position as the premium brand in many of our markets”, said Samuel A. DiPiazza Jr, CEO PricewaterhouseCoopers International. “Despite the challenges posed by the continuing credit crunch particularly, in developed markets, PwC’s results held up well, and all of our lines of business and firms continue to grow.”
“I am also delighted that our firms around the world have given the new PwC network structure such a strong endorsement. This new structure will give us the agility and speed needed to continue our expansion in the emerging markets. It will allow us to more closely align our strategy around the world, further improve the integrated service we offer clients and maintain our approach of local delivery of global services”, added Mr DiPiazza.
The new structure is effective immediately. PwC member firms will continue to be locally owned and managed partnerships, preserving the organisation’s entrepreneurial culture and retaining a high level of accountability to stakeholders and regulators.
In addition, the standards that all PwC member firms are required to follow are being updated and expanded to reflect the increasingly global nature of the services offered to clients and the need for global consistency across an ever-widening range of areas.
PricewaterhouseCoopers provides industry-focused assurance, tax and advisory services to build public trust and enhance value for its clients and their stakeholders. More than 154,000 people in 153 countries across our network share their thinking, experience and solutions to develop fresh perspectives and practical advice. “PricewaterhouseCoopers” refers to the network of member firms of PricewaterhouseCoopers International Limited, each of which is a separate and independent legal entity.