Scandal-hit PwC posts $3.4 billion in revenues for 2023

The Australian branch of PwC has recorded $3.4 billion in revenues for its 2023 financial year, with $680 million of that sum generated by its soon to be divested government advisory practice.

Embattled professional services firm PwC has released its final financial report before it sheds its public sector practice as Scyne Advisory, recording double digit growth to pull in $3.4 billion over the 2023 financial year to July.

The figures confirm that, for now, PwC remains the largest of the local Big Four, eclipsing the $2.85 billion recorded by Deloitte by a substantial margin. Profits however remained flat, impacted by the tax scandal engulfing the firm.

“It has clearly been a challenging year for PwC and our people. While our revenue results were pleasing, the challenges we experienced in the final quarter had an impact on profit,” stated Kevin Burrowes, who was brought in to replace Tom Seymour as CEO in June. “I want to thank our people for their resilience, their continued focus on our clients, and the high quality of their work in the face of what has been a difficult time for them at the firm.”

Somewhat abnormally among its competitors, the 11 percent revenue growth was led by the firm’s Assurance division rather than Consulting, up by 15 percent compared to plus 12 percent. While difficult to make comparisons due to the way the Big Four organise their various divisions, the growth of KPMG’s Assurance & Risk Consulting practice for example slowed from 13 percent to 4 percent. PwC’s third line, Financial Advisory, rose by 9 percent.

Although the firm didn’t disclose the total income of each of its primary divisions, the greatest interest will be in the $680 million sum generated by its soon to be divested government advisory practice, which accounted for roughly 20 percent of total revenues. Coupled with the expected impacts of the greater reputational damage caused to the firm by its government tax breach, PwC’s partnership has accepted a target income reduction of up to 30 percent for the current financial year.

The upcoming pay cut follows a 12 percent drop in average partner income over the past year, which ranged from $374,000 to Seymour’s $4 million pay packet. The rise in the firm’s partnership numbers to 882 through 97 admissions in 2023 will also shortly be reversed with the more than 115 departures to Scyne Advisory, along with those forced out over ethical breaches and others looking for a clean slate. The firm has also deferred its standard mid-year partnership intake.

“We thank those moving to Scyne Advisory for their hard-work, dedication and contribution during their time at PwC and wish them all the best in this next chapter,” Burrowes said. “As we look forward, we completely accept that past leadership failed to meet the standards our people, clients, the community and Australian government rightly expect. We didn’t get it right, but our focus has and always will be on our clients as we take the necessary steps to re-earn trust.”