WEST PALM BEACH, FL: FTI Consulting's strategic communications unit reported a 1% year-over-year revenue increase to $45.5 million in the first quarter of 2013.
Mark McCall, head of strategic communications in the Americas, attributed the unit's increased revenue to project growth in North America and Europe. The group also saw growth in the financial services, healthcare, and energy sectors, he added.
In March, FTI Consulting acquired lobbying firm C2 Group, which will operate as part of the public affairs group within FTI's strategic communications unit.
“We made some important investments in both people and in the acquisition of C2 Group. We're really starting to see those pay off, particularly in the first quarter and even last month,” McCall said. “Our business has been good at adapting to the difficult market and continuing to help clients through crises, restructurings, and acquisitions.
In Q1, the company's overall revenue grew 3% year-over-year to $407.2 million. It also saw $937,000 in operating income and $23.6 million in net income in the quarter.
“Once again, our results for the first quarter were led by the excellent performance of our market-leading economic consulting group. We also enjoyed the contributions from two small corporate finance/restructuring acquisitions in Asia-Pacific and in telecommunications, media, and technology, respectively, and began to see results from our efforts to cut costs in [selling, general, and administrative] expenses,” FTI Consulting president and CEO Jack Dunn said in an earnings statement.
First-quarter revenue in the economic consulting group grew 15.1% year-over-year to $115.2 million, while corporate finance and restructuring revenue increased 2.3% year-over-year to $99.1 million. The company's technology sector saw a 6% year-over-year drop in revenue to $46.7 million.
In the prior year's Q1, FTI's strategic communications division reported a revenue drop of 2.9% year-over-year to $45 million. Overall revenue increased 9.2% to $395.2 million in that period, while the company earned $18.4 million in net income in Q1 2012.
This story was updated on May 9 to include quotes from McCall.