FTI strategic comms revenue up 7.5% in Q3

FTI Consulting noted a marked turnaround in its financial numbers compared with Q3 2013, improving both net income and operating income. Its strategic comms group also achieved 7.5% revenue growth after seeing a drop last year.

FTI Consulting president and CEO Steven Gunby
FTI Consulting president and CEO Steven Gunby

WEST PALM BEACH, FL: FTI Consulting's strategic communications unit reported a 7.5% revenue increase to $46.6 million in the third quarter of 2014, compared with Q3 2013.

The company attributed the growth to favorable impacts of foreign currency translation and increased project work in North America and Asia-Pacific. FTI did not break out organic revenue growth or regional growth in its third-quarter earnings report.

The company's overall third-quarter 2014 revenue grew 8.8% to $451.2 million. FTI also achieved $46.4 million in operating income, compared with a loss of $35.6 million in Q3 2013. Its net income in the period was $22.5 million, up from a loss of $50.6 million last year.

In Q3 2013, FTI reported a 5.4% year-over-year revenue drop to $43.3 million in its strategic comms business, compared with the year prior.

Mark McCall, head of strategic communications for the Americas at FTI, said North America and Asia-Pacific are two regions where the company is exceeding expectations.

"We are continuing to execute very well in most regions, and especially in North America and Asia-Pacific," he said. "More profitable projects have been an important driver of the improved margins."

Revenue earned by FTI's technology segment rose 21.8% in the quarter to $62.4 million, while corporate finance and restructuring revenue increased 6.4% in the period to $100 million.

FTI president and CEO Steven Gunby said in an earnings statement that the third-quarter performance exceeded his expectations and was driven by "very high demand" from major clients in its technology and forensic and litigation consulting units. He also cited continued progress in economic consulting and strategic communications.

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 corporate reputation through thought leadership and campaigns.

In May, McCall told PRWeek that the firm expected growth in crisis, transaction, and issues-management work through this year, as well as in shareholder activism and employee engagement.

This story was updated on October 31 with comment from McCall.

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