Total network revenues rise.
Advisory business returns to strong growth.
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 Ken Igbokwe, Managing Partner of PricewaterhouseCoopers Nigeria. “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 Igbokwe. “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 Igbokwe 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.