FTI Consulting’s strategic communications segment reported a Q4 organic revenue increase of 6.7% to $58 million and a spike of 16% to $223.3 million for all of 2018.
Mark McCall, global leader of FTI’s strategic comms division, said the results are the latest expression of long-term trends at the consultancy.
"It’s a good mix of business across the board," he said. "I will say last year was fantastic, and it is a continuation of a longer-term trend in our business of good growth in revenue and really strong profit growth in the last five years."
McCall added that trends such as M&A, shareholder activism, and crisis management needs are driving its business.
"The secular trends we’ve been focused on for several years, those are longer-lasting," he said. "I’m talking about the impact of nationalism, tariffs, sanctions, and the impacts of government and regulation on business globally. That’s the overriding trend that has been driving our growth."
FTI attributed the growth to both retainer and project-based revenue and said the size of both types of accounts has increased.
"Clients are coming to us with very specific capital markets issue or public affairs issues and then seeing the complexity of these challenges require [that] we provide more integrated comms across the board," McCall said.
The company as a whole posted 12.2% 2018 revenue growth to $2 billion, with Q4 revenue up 8% to $505 million. FTI’s forensic and litigation consulting team saw a 9.3% revenue increase in Q4 to $132.1 million, while its economic consulting group was up 6.1% to $128.4 million. The technology segment reported a revenue increase of 2% to $41.7 million in Q4.
FTI’s Q4 net income was down 64.6% to $23.7 million, but up by 39.4% for all of 2018 to $150.6 million.