WASHINGTON: FTI Consulting's strategic communications revenue grew 3.7% in Q1 to $60.5 million.
Excluding the estimated positive impact from foreign currency translation, revenues decreased 0.5%, primarily due to a $2.2 million decline in pass-through revenues.
FTI’s strategic communications segment was up on Q1 2020 in which its revenue grew 1.2%.
Global segment leader Mark McCall said he considers it a turning point in recovery after the recession caused by the COVID-19 pandemic as the demand for public affairs services increases compared to the prior year.
"We're not out of the woods yet, but we're continuing to see a pickup in transactions both in EMEA and in the U.S.," McCall said, adding that crisis continues to drive a significant part of the company's business. "ESG is also driving a lot of our ongoing corporate reputation work as companies face increased activism."
The strategic communications segment at FTI has been working more closely with other business units including the forensic litigation consulting segment, which saw revenues increase 2.2% to $150.8 million.
First-quarter revenue for the corporate finance and restructuring segment rose 8.9% to $226.2 million. In the economic consulting segment, revenue increased 28.1% to $169.3 million.
McCall said key hires in Q1 will fuel growth for the rest of the year. FTI brought on Bryan Zumwalt as senior MD and head of government affairs in the Washington, DC, office. Julian Lambertin was appointed MD, head of data and analytics for EMEA; and Kate Brader was named MD of crisis communications in London.
"It was a solid quarter for us because of our global network, and it reflects investments that we've made in our various practices as well as working with other segments," McCall said.
FTI's overall Q1 revenue rose 13.5% to $686.3 million. Net income increased to $64.5 million from $56.7 million. The company credited the increase to "higher operating profits in the economic consulting, forensic and litigation consulting, and technology segments" in an earnings statement.