NEW YORK, Nov. 22, 2004 (PRIMEZONE) -- PricewaterhouseCoopers announced today that aggregate global gross revenues of PricewaterhouseCoopers firms for the fiscal year ended 30 June 2004 rose to $17.6 billion, an increase of 4% in local currencies and just over 11% in US dollars from the previous year's $15.8 billion. Aggregate net revenues increased by nearly $2 billion to $16.3 billion, an increase of 6% in local currencies and just over 13% in US dollars.
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"We experienced strong performance across all of our businesses in FY04 as a result of improved market conditions in many countries as well as our success in refocusing our business strategy to adapt to changing client buying patterns and regulatory developments," said Samuel A. DiPiazza, Jr., CEO of PricewaterhouseCoopers International Limited. "Our assurance practices are performing very well and our market share of services to non-audit clients is growing. This strong performance demonstrates clearly that clients recognize the quality of our advice and the value of working with the world's leading global professional services network."
On a geographic basis, aggregate net revenues grew rapidly in North America, where new audit requirements increased demands for services provided by the U.S. firm's assurance practice. PwC performed strongly in Africa and in parts of Asia, particular China, where PwC now employees upwards of 5,000 people. Revenues also recovered in South America, after a decline in 2003. In much of Europe and some Asian markets, PwC firms faced more difficult economic conditions.
On a global basis, net aggregate revenues from assurance services rose nearly 10% to $8.7 billion, aggregate tax revenues were flat at $4.5 billion, and advisory services increased by just over 6% to $3.1 billion.
PricewaterhouseCoopers today also released its 2004 Global Annual Review, which examines PwC's performance in meeting the needs of its clients and itspeople on crucial issues such as creating sustainable value, building public trust, attracting, respecting and retaining outstanding people and providing leadership on key professional issues.
In the Review, Mr. DiPiazza notes that creating value is of primary importance to companies and their stakeholders.
"The accounting profession plays an essential role in making sure that appropriate systems and controls are in place to report accurate, timely performance information, and in providing sound advice that does not put reputation at risk for short-term gain.," Mr. DiPiazza writes in the Review. "Developing and maintaining trust while creating value with the advice we give - being a trusted advisor - is where PricewaterhouseCoopers seeks to differ from other advisors. We will not impair our independence. But we will always bring a unique perspective to our client relationships with our objective, independent advice, based on our multiple competencies."
Highlights of the 2004 Global Annual Review include examples of:
* PricewaterhouseCoopers' commitment to quality, integrity and the public interest * Excellence in sustainable business practices by clients * Recruiting, retention and leadership development practices * PwC's responsibility and commitment to transparency and corporate governance
The Annual Review is available electronically at www.pwc.com/annual.
PricewaterhouseCoopers (www.pwc.com) provides industry-focused assurance, tax and advisory services for public and private clients. More than 120,000 people in 144 countries connect their thinking, experience and solutions to build public trust and enhance value for clients and their stakeholders.
"PricewaterhouseCoopers" refers to the network of member firms of PricewaterhouseCoopers International Limited, each of which is a separate and independent legal entity.
Notes to Editors
1) US and UK GAAP permit the reporting of gross revenues (inclusive of reimbursed client expenses). International Financial Reporting Standards (IFRS) encourage the reporting of aggregate global revenues net of reimbursed client expenses. To facilitate comparison with other firms, we have provided both figures.
2) Stated in US dollars, revenue growth benefited from a favorable currency exchange rate environment. Weakness in the US dollar had the effect of boosting the converted value of revenue realized by many of the non-US member firms.
Aggregated Revenues of PricewaterhouseCoopers Firms - 30 June 2004 --------------------------------------------------------------------- Aggregated Revenues At FY04 exchange By Line of Service rates (USD Millions) FY04 FY03 % Change % Change ----------------------------- ------ ------ ---- ---- Assurance 8,713 7,433 17.2% 9.6% ----------------------------- ------ ------ ---- ---- Advisory 3,077 2,709 13.6% 6.3% ----------------------------- ------ ------ ---- ---- Tax 4,464 4,197 6.4% -0.2% ----------------------------- ------ ------ ---- ---- Net Revenue from Continuing 16,254 14,339 13.4% 6.1% Professional Services ----------------------------- ------ ------ ---- ---- Expenses Billed to Clients 1,317 1,137 15.8% 6.3% ----------------------------- ------ ------ ---- ---- Gross Revenue from Continuing 17,571 15,476 13.5% 6.1% Operations ----------------------------- ------ ------ ---- ---- Discontinued Operations 29 344 -91.5% -92.3% ----------------------------- ------ ------ ---- ---- Total Gross Revenues 17,600 15,820 11.3% 3.9% ----------------------------- ------ ------ ---- ---- Aggregated Revenues At FY04 exchange by Geography rates (USD millions) FY04 FY03 % Change % Change ------------------------------- ------ ------ ------ -------- Asia 1,497 1,352 10.7% 6.8% ------------------------------- ------ ------ ------ -------- Australasia and Pacific Islands 714 556 28.4% 7.3% ------------------------------- ------ ------ ------ -------- Europe 7,352 6,463 13.8% 2.2% ------------------------------- ------ ------ ------ -------- Middle East and Africa 358 269 32.8% 12.6% ------------------------------- ------ ------ ------ -------- North America and the Caribbean 6,028 5,432 11.0% 10.1% ------------------------------- ------ ------ ------ -------- South and Central America 305 267 14.1% 15.2% ------------------------------- ------ ------ ------ -------- Net Revenue from Continuing Professional Services 16,254 14,339 13.4% 6.1% ------------------------------- ------ ------ ------ -------- Expenses Billed to Clients 1,317 1,137 15.8% 6.3% ------------------------------- ------ ------ ------ -------- Gross Revenue from Continuing Operations 17,571 15,476 13.5% 6.1% ------------------------------- ------ ------ ------ -------- Discontinued Operations 29 344 -91.5% -92.3% ------------------------------- ------ ------ ------ -------- Total Gross Revenues 17,600 15,820 11.3% 3.9% ------------------------------- ------ ------ ------ --------
Notes to financial statement:
FY04 revenues are expressed in US dollars at average FY04 exchange rates. FY03 revenues are shown as originally reported last year at average FY03 exchange rates.
Fiscal year ends 30 June 2004.
FY03 Service Line revenues have been reclassified to reflect the new Service Line structure, which came into effect in 2004. Tax figures include correspondent law firms where regulations permit.
Discontinued operations represent businesses disposed of during the year, principally affecting Tax services revenues of firms in Europe.
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