WEST PALM BEACH, FL: FTI Consulting's strategic communications unit reported a revenue drop of 5.4% year-over-year to $43.3 million in the third quarter of 2013.
The group attributed the decrease to reduced pass-through revenue for certain retained work in EMEA and North America and fewer mergers and acquisitions in the Asia-Pacific region.
Last year, FTI reported an 11.6% third-quarter revenue decrease in its strategic communications business, compared with Q3 2011.
In the first nine months of 2013, FTI's strategic communications segment reported revenue of $139.4 million, an increase of 1.4% compared with the first three quarters of 2012.
Overall, the holding company reported Q3 revenue of $414.6 million, a 7.4% increase compared with the same quarter in 2012. FTI's overall Q3 revenue was up 3.4% organically.
FTI saw a net loss of $50.6 million, compared with a profit of $22.7 million in Q3 2012, year-over-year. The holding company also reported an operating loss of $35.6 million in Q3, compared with an operating profit of $46.6 million in Q3 2012.
In the first nine months of 2013, FTI's operating income was $69.9 million, down from an operating profit of $114.4 million last year. It saw a net loss of $3.5 million, compared with a profit of $48.9 million in the first nine months of 2012.
The company's strategic communications unit was its smallest business segment in terms of Q3 revenue, compared with corporate finance and restructuring ($94 million), forensic and litigation consulting ($113.1 million), economic consulting ($113.1 million), and technology ($51.2 million).
Jack Dunn, president and CEO of FTI, said in an earnings statement that the firm's economic consulting in North America and Europe, along with its forensic and litigation consulting and its health solutions practice, saw “excellent” results.
“In technology, we benefitted from returns on the sustained strategic investments we have made in this business with respect to our products, people, and business development initiatives globally,” he added, in the statement.
A representative from FTI could not be immediately reached for additional comment.