For the 12 months ending June 30, 2023, PwC firms around the world reported record gross revenues of US$53.1 billion, growing by 9.9 per cent in local currency and 5.6 per cent in US dollars over the FY22 gross revenues of US$50.3 billion.
Growth from continuing operations, excluding Russia which left the PwC network on 4 July 2022, and our Global Mobility and Immigration business which was sold on April 29, 2022, increased by 11.8 per cent, reflecting the quality of the work delivered by over 364,000 professionals around the world and the power of the PwC brand.
Bob Moritz, Global Chair, PwC said: “Our focus on delivering the quality services that our stakeholders need to prosper today and to prepare their organisations for the future has driven another year of growth for us. As we come up to our 175th anniversary, we continue to invest in the future of our network with strategic acquisitions in key growth areas and a drive to expand our workforce and continue to acquire a broad and diverse range of talent. Providing the best quality services we can is the focus of all of my colleagues around the world and the foundation of our success. I am proud of the hard work and dedication our PwC people have shown over the last year.”
A statement by PwC in Lagos said that Europe, Middle East and Africa (EMEA) revenues were up by 10.2 per cent. Consolidated revenues from the UK and Middle East rose by 16 per cent (18 per cent for continuing operations), while in Germany, they increased by 13.1 per cent. Across Africa, revenues grew more slowly, up 4.1 per cent, with a strong performance from South Africa, coupled with more challenging market conditions elsewhere across the continent.
PwC further revealed that “Excluding revenues from Russia from the prior year, Central and Eastern Europe (CEE) saw growth of 15.2 per cent as the economic impact of the war in Ukraine lessened across most of the region.
“Asia Pacific revenues were up 7.2 per cent, with a very strong performance from India, which was the fastest growing large firm in the PwC network with a revenue increase of 24 per cent. Australia grew by 10.7 per cent.
“Across the Americas, revenues were up by 10.7 per cent, with the US growing by 11.2 per cent, Canada by 4.5 per cent (10.9 per cent for Continuing Operations). In Brazil, which for the second year posted the strongest revenue growth across South and Central America, revenues were up by 14.3 per cent.”
It also stated that each of the company’s lines of business – Assurance, Advisory, and Tax and Legal Services – saw revenues grow in FY23.
“Revenues from our assurance operations grew by 8.9 per cent to US$18.7 billion (FY22: US$18.0 billion). Audit remains the cornerstone of our brand and the key driver for growth in our Assurance business. In an increasingly volatile world, the market continues to value an independent, objective view over reported financial information and the trust it builds in the capital markets. Our audit business has continued to grow over the last year as we manage complex market dynamics, such as auditor rotation, regulation and increasing competition. We also see increasing demand for assurance over a range of non-financial information, such as cyber and ESG disclosure, as companies seek to build trust with their stakeholders in new areas. We expect to see this trend continue in future years.
“Over the past year, we also saw substantial growth in our risk services. Geopolitical conflict and an inflationary environment have caused significant uncertainty. We have guided organisations to navigate this uncertainty, helping them bring confidence and delivering better business outcomes in areas such as regulatory response and remediation.
We also saw strong demand for our risk modeling and actuarial offerings as organisations increasingly seek assurance in broader areas.”
The company declared that revenues from its advisory operations grew by 13 per cent to US$22.6 billion (FY22: US$20.7 billion).
“Much of the growth in our Advisory business has been driven by our clients’ focus on the need to digitally transform their business models. We have strengthened our relationships with our key technology Alliance partners to go-to-market and deliver sustained outcomes, which has driven a 40 per cent increase in revenues from alliances. We’ve also met the demand of our clients to deliver across the entire value chain – from strategy and implementation to run and operate – driving significant growth in our Managed Services business.
“While challenging economic conditions continued to result in generally slow deal activity in a number of key markets around the world, our work to advise on and support our clients’ mergers, acquisitions and disposals remained relatively strong throughout the year. In addition, our work to support corporate reorganisations or distressed enterprises also expanded.”
On Tax, Legal and Workforce, businesses grew strongly in FY23, up by 12.5 per cent to US$11.8 billion, compared with growth of 8.7 per cent in the previous year. These growth numbers exclude revenues from our global mobility and immigration business which was sold on 29 April 2022. The sale of this business has allowed us to increase investment in both our core Tax, Legal and Workforce operations and in new business areas and capabilities (such as alliances and AI), which has helped drive the company’s strongest growth for ten years.
“Businesses are undergoing significant transformative changes, leading to a strong demand for Workforce services as clients seek support boosting workforce productivity and employee experiences in the face of new technology and disruption. Also driven by transformation has been the growth in our Legal Business Solutions operations in response to increasing demand for Managed Legal Services and Legal Tech Advisory & Implementation.
“Demand for Connected Tax Compliance, a PwC integrated service-offering, continued to grow strongly as clients across the world grappled with added regulatory complexity and increasing compliance responsibilities. In addition, we are helping clients deal with increased tax and legal sustainability requirements, including the payment of so-called “green” taxes and compliance with environmental regulation.