PricewaterhouseCoopers (PwC) released its 2006 Global Annual Review for the fiscal year ending June 30, 2006, which showed its network of worldwide firms revenues grew by 11 percent, to US$22 billion at constant exchange rates, including expenses reimbursed by clients. Net revenues were US$20.8 billion.
There are no consolidated financial statements published for PwC firms, they publish the shared global information. PricewaterhouseCoopers refers to their network of separate and independent legal entity firm members of PricewaterhouseCoopers International Limited.
"Revenues for the PricewaterhouseCoopers International network were particularly strong in 2006. This has been another great year for PwC firms around the world," said Global CEO Samuel A. DiPiazza, Jr. "We saw healthy growth across the globe, driven by the strength of our brand and services, buoyant economic conditions and the hard work and commitment of our 140,000 strong PricewaterhouseCoopers team."
The revenue growth in developing markets continued, with 26.4 percent increase in Central and Eastern Europe, 16.8 percent in the Middle East and Africa and 22.7 percent in South and Central America. North America and the Caribbean had revenues increase 12.1 percent. As Mr. DiPiazza noted, "We will get standards that fulfil their role in the capital markets only if preparers and users accept the need to participate in, and ownership of, the standard-setting process. He also noted that " this has not been a year without challenges-notably the very high demands on certain specialist skills across our network and the difficult situation we faced in Japan. However, we responded well to the challenges." Western Europe had a 8.8 percent revenue gain, Australia and the Pacific Islands, a 9.6 percent gain.
Relevance to the investor, beyond regulatory compliance must be maintained by the accounting profession. Mr. DiPiazza feels, "Our Profession must work to converge global accounting standards and develop relevant financial reporting models that provide the world's investors with valuable insights. In this way, we will increase our value to clients and the public."
The fastest growing service line was Advisory, with 19.7 percent growth, to over US$4 billion, a result of the success in implementing a coordinated market strategy in the world and the increased focus on priority clients. Tax had a 12.1 percent rate of growth, to over US$5 billion, as a result of the emphasis on providing non-audit client services. Demand for Sarbanes-Oxley (SOX) related services leveled off, but Assurance reported year-on-year growth of 7.8 percent, to over US$11 billion.
Most PwC firms achieved double digit growth for the second consecutive year, with Russia, China and other developing markets providing the strongest growth in revenue.
"Our challenge for the future," says Mr. DiPiazza, "is to continue to invest in building a sustainable enterprise that has its foundations in quality people, quality clients, quality service and quality advice."
The full report can be downloaded at 2006 Global Annual Review.