PwC global revenues up 7% to hit $41.3bn

PwC global’s earnings have hit a record high with gross revenue reaching $41.3bn for the year ending 30 June 2018, a growth of 7% in local currency and 10% in US dollars

Revenues were up across all PwC’s operations, boosted by investments in quality, new technologies, services and talent.

In the Americas, revenues grew by 4% with a strong performance from operations in the US. Growth in Western Europe was up by 6% in FY18 with revenues in central and Eastern Europe growing 10%. Revenue growth from the Middle East and Africa was 12%.  Across Australasia and the Pacific, revenue growth was 7% while PwC’s strongest growth was in Asia where revenues were up 15%.

PwC’s assurance services grew 4% to reach $17.1bn after growth in all major markets, including those impacted by mandatory audit firm rotation.

PwC’s advisory business grew 10% to $13.8bn in FY18 with particular growth across the firm’s deals businesses and its strategy, management and technology consulting practices.

The firms tax and legal revenues grew by 8% to $10.4bn, driven by the scale and complexity of change in many domestic and international tax systems, including the impact of US tax reform.

‘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 Bob Moritz, PwC’s Global Chairman.

Moritz added that heavy investment in technology such as artificial intelligence, machine learning and cloud computing was driving the firm’s success.

‘Technology is redefining PwC and the quality and relevance of the services we provide, just as it is reshaping the world of business. Across our network we are fully focused on implementing the best technology ideas for our stakeholders. By 2019 we will have invested over $1bn enabling our business in the Cloud, helping maximise the quality and impact of our services and solutions,’ he said.

PwC’s global workforce now tops 250,000, a growth of 6%, with over 27,000 new graduates recruited in the last year. Globally, 64,776 people joined PwC firms around the world and in FY18, nearly half of all the people who joined PwC were female.

There are now 739 partners at PwC firms across the world, with 30% of firms’ new partners in FY18 being female. Female representation in the PwC member firm partnerships has gradually increased from 13% in 2006 to 20% in 2018.

‘We are proud of our role as one of the world’s major recruiters and trainers of finance professionals as well as the contribution we make to the societies in which we operate,’ said Moritz.

It was not all good news for the firm in 2018 though. PwC was fined heavily and severely reprimanded by the Financial Reporting Council for the conduct of its audits of BHS and RSM Tenon, a fact Moritz commented on. In June this year PwC was fined £10m, reduced to £6.5m for early settlement, for misconduct in relation to the 2014 audits of BHS and the Taveta Group. The firm was also fined £6m, reduced to £5.1m, in August 2017 for misconduct in the audit of the financial statements of RSM Tenon Group, for the financial year ended 30 June 2011.

‘No organisation is perfect. We have been criticised this year, and where we have made mistakes we have taken responsibility for our actions. There are always lessons for us to learn and more that we can do to improve. We are also very conscious of some of the criticism that has been levelled at our profession. We take this very seriously; we are working hard to address it and to better demonstrate the contribution that we make to the capital markets and society as a whole. Nothing is more important to me than to lead a PwC that remains trusted, relevant and vital to serving the needs of all our stakeholders,’ he said.

Report by Rob Munro, additional reporting by Amy Austin

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