Marketing & Media trends
PwC FY15 global revenues increase 10% to US$ 35.4 billion
The PwC network reported total global gross revenues of US$35.4 billion for the fiscal year ended on 30 June 2015. At constant exchange rates, PwC's total global revenues rose by 10%. This is up markedly from the previous year and the strongest year-on-year growth that the network has seen since FY07. Growth was strong across all lines of business and in all geographic regions.
"The global business environment remains challenging, with a continuing patchy economic picture, geopolitical issues creating uncertainty for business and fierce competition in the professional services market. Despite these challenges the PwC network performed exceptionally well in FY15 with growth of 10%, pushing revenues over the US$35 billion mark for the first time," said Dennis M. Nally, Chairman of PricewaterhouseCoopers International Ltd.
"Our strongest growth for eight years is a result of the significant investment we have made in recruiting the best people, enhancing the quality of our services and building new product offerings such as data analytics. We have also continued to make key strategic acquisitions to complement and expand our core business.
"Technology is transforming all aspects of our lives and every business, so we are working in alliances with market leaders such as Google and others, to bring the latest and best technology thinking to our clients.
"The PwC brand has been acknowledged as the strongest professional services brand in the world and this reputation is built on the energy, enthusiasm and quality of our 208,000 people and their commitment to working with all of our stakeholders to build trust and to solve important problems.
"There's much to be proud of and I think we have strong momentum going into FY16 with many significant accomplishments to build on. All of our lines of business and geographic regions are growing, the acquisition of Booz & Company (now Strategy&) has provided a major boost to our capabilities and we are now the leading organisation in our ability to provide services ranging from strategy right through to execution. We recruited 53,000 new people last year and plan to recruit even more in FY16 from a broader range of countries and with a wide range of skills, as we expand our capabilities to match the increasingly diverse demands of our stakeholders.
"While there is large variation around the world and some countries will continue to struggle, overall we predict stronger global economic growth of 3.6% in 2016," added Dennis Nally.
PwC member firms in North America and the Caribbean continued to grow very strongly with revenue growth of 12%. Our largest firm, PwC US, enjoyed an impressive year with revenues up 10% to US$12.2 billion and strong growth in all lines of service.
Revenues from South and Central America remained buoyant, up 8% - although this growth is down from the previous year impacted by the tough ongoing economic conditions in Brazil.
Revenue growth in Asia was also strong in FY15 up by 9% to US$4.1 billion. PwC's continued focus on service development and expansion in Asia paid dividends with PwC's firms in China and Hong Kong growing by 8% and India by 17%. While the economic situation in China looks more challenging in the year ahead, we continue to be optimistic and believe we are well placed to enjoy growth in the year ahead.
Growth also increased impressively across Europe with revenues up 8% in Western Europe and 6% in Central and Eastern Europe. The UK firm, PwC's second largest, also performed strongly with revenues up 9% to US$4.1 billion, recording particularly good growth in its Assurance and Advisory services. PwC's firms in Italy grew by 11%, Germany 8% and France 6%.
PwC enjoyed double-digit growth in the Middle East and Africa with revenues up 16%.
Hein Boegman, CEO of PwC Africa, said that the global firm expects increasing growth in the emerging markets in the next few years. "We embarked upon an ambitious investment strategy in Africa in 2012 to build PwC into the leading network in Africa, which is paying dividends. We have invested substantially in the region and our people, and are firmly embedded in the local communities. Our practice in Africa with its over 10,000 staff members is a strategically important asset in the PwC Global network."
Boegman said PwC's strategy in Africa mirrored that of its international clients who are also expanding across the continent. "We clearly see the opportunity in Africa is huge for a number of reasons. For instance, the level of political democracy has improved significantly over the past 20 years and in the past five years we have seen the discovery of oil & gas reserves in countries such as Mozambique, Tanzania, Ghana and Angola.
"We have great confidence in the future of Africa and are investing heavily in talent and skills development to ensure that we have the right people in the right place to continue to provide value for our clients in the years ahead."
The South African firm recently appointed Dion Shango as the Southern Africa CEO role with effect from 1 July 2015. Shango, a South African citizen, is the first African black to be appointed in this role within PwC. PwC South African Board Chair, Shirley Machaba, was elected to the PwC Global Board - the first female black partner to be elected to the Global Board. "This bears testimony to our commitment to diversity and inclusion, which are also key focus areas for our global firm," adds Boegman.
Growth was also good across the Australasia and the Pacific Islands region with revenues up by 11% with strong growth in Australia where revenues grew by 10%.