WASHINGTON: FTI Consulting’s strategic communications revenue grew by 14.3% year-over-year in Q4 2019 to $66.3 million and 8.8% to $243.1 million for the full year.
The numbers, which include $4.5 million in pass-through revenue, resulted from increases in project work in North America, Europe, the Middle East and Africa.
“We continue to operate in a really complex business environment with disruptions to supply chains and political uncertainty, and that continues to drive our business in crisis, public affairs, complex capital market assignments, merger and acquisitions and bankruptcy restructuring,” said Mark McCall, global leader of FTI’s strategic comms division.
He didn’t disclose which area was most successful, but said bankruptcy and litigation-related comms are increasingly important for FTI.
“In complex capital assignments, like bankruptcy and restructuring, we’re working in parallel with folks in our corporate finance segment, particularly in the restructuring aspect. We have a very large restructuring business in that segment, so that has been important,” he said.
“We’re doing a lot more work in litigation, particularly environmental litigation, as more companies are facing large, complex class action lawsuits.”
The firm is also doing more work focused on bringing together corporate cultures after a merger or acquisition, McCall said.
Litigation work is prominent in North America, McCall explained, while in other regions such as Asia operational challenges are generating work for the communications segment. Although Asia generates a smaller part of the strategic comms segment’s revenue, McCall said it is increasingly important.
“We would not be a global comms firm if we did not have presence in China, Singapore and Japan,” he said.
Part of the firm’s work in the region has been dealing with the effects of coronavirus on business. “Our business continues to grow there because of the challenging environment,” McCall said. “It’s not just coronavirus but also trade.”
FTI’s forensic and litigation consulting team saw a 13.8% Q4 revenue increase to $150.3 million, while economic consulting revenue was up 19.2% to $153.1 million. The technology segment saw revenue increase 23.5% to $51.5 million in Q4. Revenue for the corporate finance and restructuring segment grew 25.1%, to $181.1 million.
As a whole, FTI posted 16% revenue growth in 2019 to $2.4 billion and 19.3% in Q4 2019 to $602.2 million.