PwC posts 'record breaking' revenues
The PwC network reported total global gross revenues of $35.9 billion for the fiscal year ended on 30 June 2016, but has been overtaken by Deloitte as the world's largest firm by revenue.
These figures represent a 1.5% increase on the same period last year and rise of more than 7% at constant exchange rates.
Although the $35.9 billion figure is a record rise in revenue growth for the firm, the rate of growth has somewhat slowed from the 9.9% income growth reported last year.
Speaking to the Wall Street Journal, Bob Moritz, PwC’s global chairman, cited economic uncertainty and efforts by the firm’s clients to hold down their expenses as two reason for the slowdown in growth.
Last month Deloitte reported aggregate network revenue of $36.8 billion for the fiscal year ended 31 May 2016, representing 9.5% growth in local currency terms.
Despite sluggish growth figures, Bob praised the “strength” of the PwC brand, and described the revenue figures as a “testament to our fundamental purpose of building trust and solving problems.”
He continued: “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.
“The world is changing rapidly and we are planning for the services our clients, capital markets and other stakeholders will need tomorrow, as well as serving their needs today. Whether it’s the tax and audit services of the future, transformational consulting, 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.”
Some of the highest levels of revenue growth for PwC came out of developing markets. Revenues grew by 10% in Asia, with the firm describing strong performances seen in India and China.
The US continued to be the firms largest overall market, with North America and the Caribbean seeing gains of 8% coupled with increases of 9% in South and Central America.
In Western Europe growth was steady, up 6%. Central and Eastern Europe posted robust revenue growth of 10%.
PwC is not only breaking its own revenue records, the firm recorded a record level of new joiners to the network, adding 58,081 people in FY16, including 26,780 graduates.
Overall PwC’s global headcount grew by over 7% to more than 223,000 people. The largest increases in workforce was seen in the strongly-growing markets of Asia and Central and Eastern Europe.
The firms also reported that more than half of new graduate recruits were female. On the subject of diversity Bob said that PwC is seeing the “highest ratio of female leaders in our history on our global leadership team” but that “there is much more to do”.