Big Four

PwC global revenues up 3% to $43bn

Big four accountancy firm PwC has reported a 3% increase in global revenue to US$43bn (£32.5bn) for the 12 month period ending 30 June 2020.

During the first nine months of FY20 to the end of March, the firm revealed revenues grew by nearly 7% over the same period last year with increases across all lines of business and in every major market.

However, it added from April to June, revenues were “significantly impacted” by the lockdown and subsequent slowing economies as countries around the world fought the Covid-19 pandemic.

Compared to the same three months in 2019, revenues were down from April to June 2020 by 6%.

In the Americas, revenues increased by 3% with a “particularly good performance from businesses in the United States and Canada”. In Western Europe revenues increased 2% and by 4% in Central and Eastern Europe.

Revenues from the Middle East and Africa also rose by 10%. Across Asia, revenues grew by 5% while in Australasia and the Pacific, revenues dropped 1%.

By business, assurance remained PwC’s largest operation with revenues up 3% to $17.6bn (£13.3bn), followed by advisory – up 4% to $14.7bn (£11.1bn). The firm’s tax and legal revenues grew by 2% to $10.7bn (£8.1bn).

Bob Moritz, chairman of the PwC Network, said: “Since the pandemic struck, our priorities have been the safety and wellbeing of our people, protecting and preserving jobs, and helping our clients and the communities in which we live and work deal with the impact of Covid-19.

“I am proud of what we have done over the last year and the way our people have adapted quickly to a huge amount of change while at the same time continuing to connect, collaborate and innovate for the benefit of our stakeholders across the world.”

He added: “While the last few months have been very challenging for everyone, we have re-focused our business to help our clients manage the immediate impacts of the pandemic and reinvent their businesses for future success. It has never been more important to provide our stakeholders with high quality services.

“We have also continued our significant investments in technology and upskilling our people to help build a sustainable PwC for the future. Our investment in technology was borne out at the height of the lockdown when 95% of our 284,000 strong workforce were operating out of the office with no interruption to the service we were able to provide.”

Looking ahead, Moritz added that despite the company having “adapted quickly” to the challenges posed by covid-19 he said “there is no doubt” that the next 12 months and beyond are going to be “difficult”.

“Our economists are predicting that the global economy will contract by 5.5 % by the end of 2021 and while different countries will recover at different rates it is clear that the economic downturn will impact us and our clients across the world,” Moritz said.

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