Progress on audit quality with continued investment to improve quality in all businesses
Major investment in technology - on track to be one of the most cloud-enabled organisations in the world
For the 12 months ending 30 June 2019, PwC firms around the world had gross revenues of US$42.4 billion – up 7% in local currency and 4% in US dollars. Revenues grew across all lines of business and major markets, boosted by the power of the PwC brand and continued significant investments in quality, technology and people.
As our clients face increasing challenges and opportunities driven by technological advances, stakeholder expectations and other changes, they require us to work together across the broad range of our operations helping them to deal with issues such as cyber security, trust, regulation and strategic workforce planning. And as a result, our business is growing rapidly in these areas to meet increased client demand.
“Over the past year, we’ve continued to focus on delivering value to our stakeholders, working hard to build trust and help our clients solve their most complex problems. As a result, PwC businesses grew in all major markets around the world. Our strong growth in revenues has enabled us to continue to invest in our businesses and our people. Investments in technology are making our services more relevant and enhancing the quality of our work.
“PwC firms now employ 276,000 people worldwide and are investing heavily in learning and development to ensure our people can build rewarding careers and are prepared for the future world of work,” said Bob Moritz, PwC’s Global Chairman.
A good performance across the world
In the Americas, revenues were up by 5% compared with 4% the prior year, with a particularly strong performance from operations in the United States and Canada, offset by some challenging economic conditions in Brazil where revenue rose by 2%. Growth in Western Europe was up by 7%. In Central and Eastern Europe, revenues continued to grow strongly - up 10% - marking the fourth consecutive year of double-digit growth.
Revenue growth from the Middle East and Africa was also strong, despite some challenging market conditions, increasing by 9%. Across Asia, revenues grew by 9% while in Australasia and the Pacific, PwC enjoyed another strong year with revenues rising by 10%.
Dion Shango, CEO of PwC Africa, said that the global firm expects increasing growth in the emerging markets in the next few years. “PwC embarked upon an ambitious investment strategy in Africa several years ago and this is clearly paying dividends. Across Africa, we have invested substantially in the region – upskilling and developing our people as well as implementing new technologies.
“With advancements in technology and innovation it is critical that we have highly skilled talent, as our clients look to us for more innovative and advanced products and services. We have embarked upon several initiatives in our own digital transformation journey. For instance, we have made significant investment in cloud-based technologies such as Google for Work, Salesforce and Workday, as well investing in other emerging technologies such as Artificial Intelligence (AI) and Robotic Process Automation (RPA).
“Our practice in Africa with its over 9,000 staff members is a strategically important asset in the PwC global network. We serve some of the continent’s largest businesses across all industries.”
Assurance: Despite very mature and highly competitive markets, revenues from PwC Assurance operations grew by 5% to US$17.4 billion. With 115,000 people across the world, we continue to manage the challenges of mandatory firm rotation in many markets and attract new clients with the introduction of cutting-edge solutions and emerging technologies for the audit. In addition, demand for our broader assurance services continues in established areas such as internal audit, risk and compliance, as well as emerging areas such as data and analytics, crypto currency and blockchain.
Advisory: PwC Advisory operations grew by 10% to US$14.4 billion. We have in recent years established a strong reputation for delivering value for clients from strategy to execution. This is driving high demand, particularly relating to deals, value creation and business transformation. PwC Advisory operations now employ 68,000 people. We engage a broad range of talents, bringing not only the more traditional management or strategy consultants, but also data scientists, AI experts, systems engineers, designers, communications experts and others, to address our clients’ most pressing business issues and opportunities. We also have alliances with many of the world’s leading technology companies to create cutting-edge solutions for clients.
Tax & Legal Services: PwC Tax & Legal revenues grew by 6% to US$10.7 billion, driven by continued complexity and change in many local tax systems, as well as the state of flux in the global regulatory and economic landscape. The 55,000 professionals in our Tax and Legal Services practices use the latest technologies to help businesses navigate complexity and risk, build their people networks, and solve legal challenges while meeting their tax and other responsibilities. Demand was particularly high for People & Organisation services, Legal services, and Tax Reporting & Strategy services.
New world. New skills.
It’s become increasingly apparent that one of the world’s most pressing challenges – and one faced by business – is the growing mismatch between the skills people have and those needed for the digital world. There is an urgent need for organisations, governments and educators to come together to fix this growing problem and business has an important role to play. Over the next four years, we are committing $3bn in upskilling – primarily in training our people but also in developing and sharing technologies to support clients and communities.
“The skills gap is an issue that goes to the heart of our purpose and we have the scale and experience to make a measurable impact. That’s why today we are launching ‘New world, New skills’ - a commitment to tackle this important problem for our people, our clients and the communities in which we operate,” said Bob Moritz.
 This 7% growth is based on continuing operations. Revenues from businesses sold in FY18 have been excluded from the FY18 numbers which have been restated from the figure published in October 2018.
Senior Manager, PwC South Africa
Tel: +27 (0) 11 797 4470