PricewaterhouseCoopers’s (PwC) FY 2012 global revenues for the year ending June 30, 2012 was US$31.510 billion, a 7.8% increase from the US$29.223 billion in FY 2011 in US dollar terms. However, on local currency terms FY 2012 revenues were actually higher than FY 2011 by 8.0%. This highly commendable performance helped the firm regain its top ranking as the largest accounting firm on the planet. PwC maintained this top honor by beating Deloitte, who reported FY 2012 revenues of $31.3 billion, thus falling short of PwC by a slim $200 million, after being ahead in 2010 by an extraordinarily slim margin of just $9 million.
PwC firms had strong revenue increases of 13% in both North America and South America, which followed a similarly strong performance in 2011 and consolidated the firm’s market position in the region. Revenue growth in developing markets of the Middle East and Africa was also strong – up 15%.
Overall, Asian growth was 6%. PwC firms had revenue growth of 4% in Western Europe and 8% in Central and Eastern Europe, both higher growth rates than in 2011. Revenues from developing markets accounted for 20% of PwC’s aggregate global revenues, and expected to reach 40% by 2017.
In the US, revenues were up by 15%; in the UK by 6%; in China by 14%; in India by 16%, in Russia by 13% and in Brazil by 14%. In terms of service lines, 2012 Assurance revenues was up 3.4% in local currency terms to $14.864 billion, but in terms of US dollars, revenues increased slower at 3.3% from $14.393 billion in 2011. PwC noted excellent performance in its signature Assurance practice, the largest in the world, despite the maturity of the business and the globally competitive market for audit services and downward pressure on pricing.
Tax services increased 7.9% in local currency terms to $7.944 billion, and 7.8% in US dollar terms from $7.372 billion in 2011.
PwC noted that this growth was driven by increasing demand from clients for advice to deal with the risks and challenges of tax compliance, tax revenue examinations and tax accounting. Further, PwC Tax advised clients of tax consequences and risks as companies actively transform their business operations to deal with globalization and changing supply chains.
Advisory services for PwC was the top service line as revenues increased by 16.9% in local currency terms to $8.702 billion, and 16.7% in US dollar terms from $7.458 billion in 2011. PwC indicated outstanding performance from the consulting businesses, due to higher sales in consulting services as clients recognized PwC’s ability to deliver transformational change across the spectrum of consulting from strategy to execution.
PwC noted strong growth in the Americas and increasing revenue share from developing countries In terms of geographies, Asia and Australasia 2012 combined revenues rose to $5.4 billion from $5.1 billion in 2011. This was a growth for Asia in local currency of 7.9% and 8.8% in US dollar terms; and correspondingly for Australasia a decrease of 5.0% in local currency, and a small increase of 0.2% in US dollar terms. PwC firms revenues in Australia and the Pacific were down by 5% due to an exceptional item in FY2011 which significantly boosted revenue growth last year. Without this exceptional item, revenues from Australia and the Pacific continued to grow steadily, up 3%.
Americas turned in an excellent performance, with 2012 revenues at $12.224 billion, up 13.4% in local currency terms and 12.8% in US dollar terms from $10.836 billion in 2011. Europe, Middle East and Africa combined revenues in 2012 of $13.877 billion, rose a solid 5.4% in local currency terms and 4.4% in US dollar terms from $13.283 billion in 2011. Western Europe revenues increased 4.4% in local currency terms and 4.0% in US dollar terms from $11.518 billion in 2011 to $11.984 billion in 2012. Central and Eastern European revenue increased 8.3% in local currency terms and 4.8% in US dollar terms from $0.778 billion in 2011 to $0.816 billion in 2012.
In 2012 the firm recruited a record 20,500 graduates, making PwC one of the largest graduate recruiters around the world; and with plans to recruit and train an even larger number of graduates in the year ahead. PwC expanded its workforce by 7% in FY 2012, taking the total number of people to over 180,000 for the first time.