PwC brought in $50.3 billion in global revenue for the year ending June 30, up 13.4% in local currency terms and 11.4% in U.S. dollars, the firm said on Oct. 4. Last year PwC achieved revenue of $45.3 billion globally.
“In a year of rapid change and numerous challenges globally, our talented people used their broad and diverse range of capabilities to support our clients and stakeholders and to make positive contributions to society. The results we achieved in FY22 are a direct outcome of our strategy, The New Equation, which we launched in June 2021. Its impact is apparent in our financial performance,” said PwC Global Chairman Bob Moritz. “For the first time, PwC firms across the world earned gross annual revenues of more than $50 billion. During a difficult year for the global economy, we achieved growth in all businesses while also repositioning our portfolio including 17 acquisitions and the disposal of our Global Mobility & Immigration business.”
With Monday’s revenue announcement, PwC remains the second largest accounting firm in the world by revenue, behind Deloitte, which had $59.3 billion in revenue during its fiscal 2022, and ahead of EY, which had $45.4 billion in revenue during its 2022 fiscal year. The last of the Big Four firms, KPMG, will announce its 2022 revenue in December.
PwC’s revenue in the Americas region had year-over-year revenue growth of 16%, after a flat performance in FY 2021. The U.S. grew by 17%, the firm noted. Revenue growth across South and Central America was strongest in Brazil, which reported an increase of 21%.
The Asia Pacific region’s revenues were up 14%, with South Korea posting a year-over-year revenue increase of 23%, India growing 21%, China up 13%, and Australia increasing 17%.
The Europe, Middle East and Africa (EMEA) region’s revenues were up by 10%. In the U.K. and Middle East, combined revenues rose by 12%, while Germany’s increased 14% in 2022.
Among the firm’s three core service lines, advisory had the biggest revenue growth at 23.5%, driven by strong demand for technology-enabled business transformation, both enterprise-wide and within specific business functions, such as finance, the front office, and human resources, according to PwC. This included helping many clients migrate to cloud environments. The firm also noted that demand for sustainable and tax-efficient supply chain transformation was high, given widespread disruptions. Advisory revenue in 2022 was $20.7 billion, up from $17 billion in 2021.
Assurance revenue grew 7.6%, from $17.1 billion last year to $18 billion this year. PwC said growth in its audit business was a result of managing complex market dynamics, such as auditor rotation, regulation, and intensifying competition. The firm noted that there will be an increased demand for assurance over a range of nonfinancial information, such as disclosures for environmental, social, and governance (ESG) factors.
Revenue in the firm’s tax and legal services business increased from $11 billion in 2021 to $11.6 billion in 2022, driven by demand for integrated compliance services and managed services due to the changing tax landscape, according to PwC.
Nearly 328,000 people work for PwC worldwide, and the firm said it is ahead of pace with its target set last year to hire 100,000 (net) additional professionals by 2026.
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Tags: Accounting, ESG
