WEST PALM BEACH, FL: FTI Consulting's strategic communications unit reported an 8.9% organic revenue decrease to $43.2 million in the first quarter of 2014.
The company cited reduced pass-through revenues as the reason for the decline.
Last year, FTI reported a 1% year-over-year revenue increase in Q1 to $45.5 million in its strategic communications business, compared with Q1 2012.
Mark McCall, senior MD and Americas head of FTI’s strategic communications practice, said via email that the agency expects "second-quarter 2014 revenues and adjusted-segment EBITDA to improve compared with the first quarter of 2014" for the strategic communications practice.
"We will continue to focus on providing exceptional client service and will position our business to take advantage of market opportunities in areas where FTI has strong market positions such as financial communications, government relations, public affairs, and in industries such as energy, natural resources, healthcare, and life science," he added in the email.
FTI does not break down results on a regional basis.
The company's overall first-quarter 2014 revenue grew 4.5% to $425.6 million. FTI also achieved $40.1 million in operating income and $18.1 million in net income in Q1.
Revenue earned by FTI's technology segment rose 28.6% in the quarter to $60.1 million, while corporate finance and restructuring revenue decreased 5.1% in the period to $94 million.
Despite the challenges of the first quarter, FTI president and CEO Steven Gunby said in a statement that he’s optimistic the firm will begin "meeting the aspirations" it has in a relatively short time.
"I do want to underscore that 2014 will see no rapid turnaround in profitability," he added. "Though we see numerous opportunities to drive the performance of all of our segments and regions, most of these opportunities will benefit 2015 and 2016 much more than 2014."
Gunby was appointed chief executive of FTI at the beginning of the year.
In January, FTI Consulting merged with TLG Partners, bolstering its strategic communications segment. TLG specializes in building corporate reputation through thought leadership and campaigns.
This story was updated on May 1 with comment from FTI.