PwC Global Network Approves Adoption of New Regional Structure
* Revenues Surge 21 Percent in Emerging Economies
* Advisory Business Up 14 Percent; Tax Grows 13 Percent
* India, China, Hong Kong, Central and Eastern Europe, Middle East
Particularly Strong
NEW YORK, Oct. 1, 2008 (GLOBE NEWSWIRE) -- PricewaterhouseCoopers today disclosed that total gross revenues for its worldwide network of firms rose to a record $28.2 billion for the fiscal year ended June 30, 2008, an increase of 8 percent at constant exchange rates. At variable rates of exchange, growth was even higher at 14 percent.
PricewaterhouseCoopers also reported that its global network of firms has voted to adopt a new organizational 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 percent to $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 percent to $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 percent - compared with 48 percent in FY2007 and 44 percent four years ago.
PwC's assurance practice reported revenues of $13.8 billion, up three percent, 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 percent, while firms in the Middle East and Africa enjoyed revenue growth of 20 percent.
Firms in Central and Eastern Europe also performed well, with revenues up 20 percent, while Western Europe continued to demonstrate strong growth, with revenues up eight percent. North American firms saw revenues grow by just two percent, 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 organization'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.
Notes to editors:
Global Revenues:
Aggregated Revenues of PricewaterhouseCoopers Firms by Service Line
(USD millions)
FY08 FY07 % change % change
at FY08 at FY07 at constant
ex. rates ex. rates ex. rate
Assurance 13,808 12,699 9% 3%
Advisory 6,899 5,739 20% 14%
Tax 7,478 6,291 19% 13%
Total Gross Revenues 28,185 24,729 14% 8%
FY08 revenues are expressed in US dollars at average FY08 exchange
rates. FY07 revenues are shown at average FY07 exchange rates for
continuing operations. Gross revenues are inclusive of expenses
billed to clients. Fiscal year ends 30 June.
Aggregated Revenues of PricewaterhouseCoopers Firms by Region
(USD millions)
FY08 FY07 % change % change
at FY08 at FY07 at constant
ex. rates ex. rates ex. rate
Asia 2,601 2,084 25% 21%
Australasia
and Pacific Islands 1,366 1,086 26% 12%
Central and
Eastern Europe 861 659 31% 20%
Western Europe 12,619 10,711 18% 8%
Middle East
and Africa 715 596 20% 20%
North America
and the Caribbean 9,332 9,029 3% 2%
South and
Central America 691 564 22% 13%
Total Gross Revenues 28,185 24,729 14% 8%
FY08 revenues are expressed in US dollars at average FY08 exchange
rates. FY07 revenues are shown at average FY07 exchange rates for
continuing operations. Gross revenues are inclusive of expenses
billed to clients. Fiscal year ends 30 June.
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