PwC’s revenues in Australia slide a further six percent to $2.2 billion

The Australian branch of Big Four professional services firm PwC has seen its revenues slide by a further six percent over the past year, to be now down by more than $1 billion from previous highs.

PwC last year posted revenues of $2.5 billion, down 26 percent from the $3.4 billion generated over the previous period, as the extent of the damage to its bottom-line from the firm’s government tax breach scandal became a little bit clearer.

Now, the firm has seen its revenues drop even further, down by a further 6 percent to less than $2.2 billion over the twelve months to the end of 2024. PwC’s partnership number also continues to contract, from at one stage almost 950 to now just 628.

The latest figures can be found in PwC’s detailed ‘annual report’, which includes a financial statement audited by Crowe and was released publicly for the first time as part of the firm’s governance reforms in its ongoing effort to restore its reputation.

“The publication of our inaugural annual report is a major milestone as we become a more transparent and well-managed firm,” stated chief executive Kevin Burrowes. “It is a first for our industry, providing an unprecedented level of detail around the firm’s performance, governance and operations. It is a significant step and one of many we are taking.”

Having last year launched a new three-year strategy and rejigged its operations – including a heavy hit to its consulting division – the latest figures show PwC’s Assurance division continues to lead the way locally, contributing $777 million to the total against the $759 million brought in by Advisory. Tax & Legal accounted for the remainder, at $475 million.

Advisory, which includes PwC’s deals and private enterprise practices, was softened by an ongoing lack of M&A activity, the firm said. It’s expected that its fellow Big Four will also report a further year of revenue declines due to the persistent depressed demand for consulting brought about by a confluence of ongoing headwinds.

“Like our clients, we operate in a dynamic market landscape,” stated PwC chief economist Amy Lomas. “Global inflationary pressures, geopolitical tensions, supply chain disruptions, and continuous shifts toward increasingly sustainable and digital economies characterise this landscape. Businesses need to keep pace with this shift, using them as catalysts for innovation.”

Notably, with lessened demand for higher-margin consultancy services – not to mention the loss of its once-lucrative public sector business and the winding down of peripheral lines such as economics and infrastructure – profitability has also significantly fallen, including a 17 percent dive to just under $620 million over the firm’s past financial year.

Still, PwC remains resolute in its path to reform, recently releasing an independent report which found that all but one of the 47 cultural and governance measures it had committed to were now implemented or well-progressed. The firm will also welcome ex-Accenture executive Wendy Stops as its fourth independent director from next month.