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The big four firm posted a 4 per cent annual revenue increase in Australia for the 2021 financial year, which saw the firm continue to shoulder the sustained impacts of COVID-19.
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PwC posts $2.2bn revenue for FY21
25 August 2021
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PwC on Tuesday released its 2021 results which saw the firm record $2.2 billion in revenue, up by just 4 per cent on the year before, which was salvaged by strong second-half revenue growth of 12 per cent.
PwC chief executive Tom Seymour said he was proud of the way his staff handled what proved to be yet another year mired by the pandemic.
“COVID-19 has once again created a very tough environment for Australian businesses, including our own. However, we are proud of the role our people played in helping our clients navigate successfully through this incredibly challenging time,” Mr Seymour said.
“The second half of FY21 saw 12 per cent revenue growth for the Australian firm and we see that demand for our services continuing through the next year.
“In particular, we have seen significant demand for our deals, cyber, infrastructure, health advisory as well as our core business offering in assurance and tax.”
Partner profits were up as well, 18 per cent higher than they were last year, when the firm booked a 15 per cent reduction.
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The firm said better-than-expected profits enabled it to make “significant investments” in its people, which included record incentive payments, COVID-19 thank-you bonuses, a record pay bump and scores of promotions.
“Our greatest asset and the success of our business is the brilliance and ongoing growth of our people,” Mr Seymour said. “This is why we have prioritised how we reward and recognise our people as a key pillar of our business strategy.”
PwC’s financial advisory unit, which includes its integrated infrastructure, deals, private clients, legal and tax services, led the firm’s growth with a 6 per cent increase to $880 million compared to last year.
The firm’s Assurance unit followed closely, delivering 7 per cent growth to $650 million for the 2021 financial year — its fifth consecutive year of growth.
PwC’s consulting business, however, continued to struggle, and reported “flat growth” revenue of $610 million compared to last year, when the firm reported a 4 per cent decline across its consulting business off the back of reduced client spending throughout the pandemic.
Mr Seymour said that recent changes to its consulting business, including a restructure, leave him optimistic for the 2022 financial year.
“Over the last 12 months, we have restructured and focused our consulting business to better respond to our clients’ needs, with a refreshed leadership team, which is poised for growth in the coming years,” Mr Seymour said.
“I believe the changes we’ve made are the right path forward, and I’m immensely proud of the work our Consulting team has done to get us to the place where we are now.”
The firm said that demand for its consulting services returned towards the end of the 2021 financial year, with its digital, technology and transformation unit leading a strong double-digit growth outlook for the 2022 financial year.
PwC also reported an additional $60 million in revenue which it said falls outside the three businesses from areas like “social impact”.
Meanwhile, the firm reported above-average growth across focus areas of its new-market growth areas including integrated infrastructure, cyber, ESG and the future of work, but didn’t include margins.
Mr Seymour said the focus areas emerge off the back of surging demand from client leaders and the challenges faced by the broader community.
“We have chosen to invest in capability based on the issues we see our clients facing over the next few years,” Mr Seymour said.
“Our focus is to provide an environment whereby our amazing people can excel serving our clients, continue to attract iconic market leaders to our firm and provide access to incredible technology to help them deliver on their strategy,” he said.
“The results of our team’s efforts over the past year have set us up for strong double-digit growth in FY22.”
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