PricewaterhouseCoopers reported outstanding revenue growth in 2011. The firm beat Deloitte to regain its leadership position as the largest accounting firm on the planet.
New York, NY (PRWEB) January 18, 2012
Big4.com, the premier social networking forum for professionals and alumni of Accenture, Andersen, BearingPoint, Capgemini, Deloitte, Ernst & Young, KPMG and PricewaterhouseCoopers PwC announced today the release of the 2011 Big Four Firms Financial Performance Analysis, providing a detailed financial and operating analysis of the performance of the four largest accounting firms in the world. The analysis shows the firms enjoyed outstanding revenue growth from 2010 to 2011 after a severe revenue decline in 2009, and stabilization in 2010, to solidify a rebound arising from the global economic slowdown. 2009 marked an abrupt reversal of five straight years of double-digit revenue growth.
PricewaterhouseCoopers’s FY 2011 global revenues for the year ending June 30, 2011 was US$29.223 billion, a 10.0% increase from the US$26.569 billion in FY 2010 in US dollar terms. However, on local currency terms FY 2011 revenues were actually higher than FY 2010 by only 8.2%. 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 2011 revenues of $28.8 billion, thus falling short of PwC by a good $420 million, after being ahead in 2011 by an extraordinarily slim margin of just $9 million.
PwC revenues rose 10% in 2010, enough to regain its leadership as the largest accounting firm on the planet
In terms of service lines, 2011 Assurance revenues was up 4.9% in local currency terms to $14.140 billion, but in terms of US dollars, revenues increased even higher at 6.5% from $13.273 billion in 2010. PwC noted excellent performance despite the fiercely global competitive market for audit and accounting services and downward pressure on prices which masked even stronger underlying growth. Audit revenue growth in 2011 was the highest in the past four years, since the service line grew 9.2% from 2006 to 2007. Tax services increased 5.7% in local currency terms to $7.625 billion, and 7.5% in US dollar terms from $7.090 billion in 2010. PwC noted steady performance across the network due to increased demand for tax and human resource consulting, indirect tax services and tax accounting and compliance work.
Advisory services for PwC was the top service line as revenues increased by 18.0% in local currency terms to $7.458 billion, and an astounding 20.2% in US dollar terms from $6.206 billion in 2010. PwC indicated outstanding performance from PwC's consulting businesses, due to recovery in M&A activity, and continued demand for consulting services as well as contributions from strategic acquisitions.
Additionally, PwC said rather confidently that it expects growth to remain healthy in FY2012 as companies continue to position themselves for better times.
PwC expects healthy growth in FY2012 as client demand continues to be strong as companies reposition
In terms of geographies, Asia and Australasia 2011 combined revenues rose to $5.1 billion from $4.2 billion in 2010. This was a growth for Asia in local currency of 8.5% and 13.5% in US dollar terms; and correspondingly for Australasia a remarkable increase of 23.5% in local currency, and an increase of 38.4% in US dollar terms.
Americas turned in an excellent performance, with 2011 revenues at $10.836 billion, up 11.6% in local currency terms and 12.7% in US dollar terms from $9.730 billion in 2010.
Europe combined revenues in 2011 of $13.283 billion, rose a solid 4.7% in local currency terms and 5.5% in US dollar terms from $12.611 billion in 2010. Western Europe revenues increased 3.7% in local currency terms and 4.1% in US dollar terms from $11.062 billion in 2010 to $11.518 billion in 2011. Central and Eastern European revenue increased 6.6% in local currency terms and 7.3% in US dollar terms from $0.726 billion in 2010 to $0.778 billion in 2011. PwC noted Middle East and Africa revenues rose 20% and South and Central America grew 23%
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Disclaimer: Big4.com believes in these numbers, but does not guarantee their accuracy.
The full study can be downloaded as Adobe pdf at http://www.big4.com/analysis.
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