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October 1, 2013

Deloitte overtakes PwC as largest global network

Deloitte has for the second time in the past three years claimed the title of largest global accountancy network as PwC reported global revenues of US$32.1bn in the year to 30 June 2013, up 4% at constant exchange rates and up 1.8% year on year.

In September, Deloitte reported revenues of $32.4bn in the year to 30 May 2013, up 3.5% year on year.

Deloitte and PwC have been neck and neck for the past few years with Deloitte for the first time ever eclipsing ahead of PwC by just $9m in 2010. Deloitte’s lead was short lived as in 2011 and 2012 PwC yet again claimed the global number one spot.

Service lines
PwC’s tax (8.1bn) and advisory revenues ($9.1bn) were up year on year, 3% and 5% respectively.

However, assurance services were down slightly by $103m or less than 1% to $14.7bn.

PwC global chairman Dennis Nally said: "PwC’s firms around the world have continued to increase revenues despite ongoing tough economic conditions and increasingly fierce competition in our markets. That gives testimony to the talent of our people, the strength of the PwC network, and our investment in the quality of the work we do for our clients."

"Over the next three years we plan to invest over US$1 billion in the development of PwC’s operations around the world, with a particular emphasis on emerging markets, and growing client offerings such as cyber security services and risk assurance.

"Economic growth in the developing markets, though slowing, continues to outpace expansion in the more established economies. After five years of crisis, recession and slow growth, we see some positive signs of sustainable recovery. The US and Japan have returned to growth and the Eurozone is emerging from recession."

"On balance we are cautiously optimistic, and predict real global growth in the coming year of 3%," Nally added.

Regions
PwC revenues were down slightly in most regions year on year, however at constant exchange rate only Australia and the Pacific were down by 1%.

PwC Americas revenues were up with North America reporting 7% growth and South America 9% at constant exchange rates. However year on year, due to currency exchange rate variations, South America revenues were down by less than 1%.
Middle East and Africa revenues were flat year on year, but at constant exchange rate up 7%, mainly attributed to the "benefits of a consolidation of PwC firms across Africa," according to the firm.

Western Europe revenues were down 1.3% (up 2% at constant exchange rates) and Eastern Europe was flat year on year and up 3% at constant exchange rates.

In Asia growth levels stalled, on average down 0.6% year on year and up 2% at constant exchange rate, attributed to the "increasingly competitive market for assurance services and the slowdown in economic growth across the region, and in China and India in particular".

Overall PwC increased its head count by 38,000 new recruits with the total workforce now at 184,000, up 2%

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