WASHINGTON: FTI Consulting’s strategic communications revenue increased 31.1% year-over-year in Q3 to $69.4 million.
The increase was primarily due to higher demand for corporate reputation and public affairs services, the firm said in its earnings statement.
Global segment leader Mark McCall said FTI’s decision from last year to continue hiring and investing in people, not only in the core markets of the U.K., E.U. and the U.S., but also in Australia, Asia and Latin America, resulted in strong performance.
On an earnings call, FTI CEO Steven Gunby emphasized that the increased headcount and investing in the business even during the economic downturn, led to data that fully supported the firm’s “doing the right thing.”
“Each of our businesses are not only growth engines but vital and powerful, vibrant,” said Gunby. The decision allowed FTI to deliver on major assignments, attract talent and build an “incredibly powerful upward sloping line.”
“Clients are thinking about issues around supply chains and ESG, where globally that has become even more important,” said McCall. “These are areas that are in demand for clients as they come out of COVID lockdown and are ramping up their production.”
He also noted strategic comms experienced growth working with other segments, pointing to corporate finance and restructuring, which experienced a 5.8% increase to $250.3 million.
Forensic and litigation consulting revenue grew 22% to $145.3 million. Economic consulting saw an 11.3% revenue increase to $172.5 million, and the firm’s technology segment revenue rose 10.4%, reaching $64.7 million.
McCall stated that ESG is driving FTI’s business in corporate reputation, particularly in financial communications.
FTI’s overall Q3 revenue increased 12.9% to $702.2 million. Net income increased 38.5% to $69.5 million.