Total Network Revenues Rise
Advisory Business Returns to Strong Growth
LONDON, Oct. 4, 2010 (GLOBE NEWSWIRE) -- 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) | ||||
| Geographic Revenues |
Actual $m |
FY09 at FY09 ex. Rates $m |
v FY09 at FY10 ex Rates % |
v FY09 FY09 ex. 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) | ||||
| Line of Service Revenues |
Actual $m |
FY09 at FY09 ex. Rates $m |
v FY09 at FY10 ex Rates % |
v FY09 FY09 ex. 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.
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