FD sees second quarter revenue drop from $62.2m to $44.6m

FTI Consulting has reported that its strategic communications segment record revenues of $44.6m over the second quarter, down from $62.2m in 2008.

FD chief executive: Charles Watson
FD chief executive: Charles Watson

The US firm established its comms division when it bought FD in 2006.

FTI said that its communications business had been adversely affected by economics conditions: ‘The segment continued to be negatively impacted by both the significantly lower level of capital markets activity, which reduced revenues from M&A- and IPO-related work.'

The 28 per cent drop in revenue is exaggerated by FTI reporting FD's results in dollars due to the relative strength of the currency over the past year. Weakness in foreign currencies relative to the dollar reduced revenues by $6.3m compared to a year ago.

FD reported first half revenue of $87.3m for the first six months of the year, decreasing from $116.8m for the same period in 2008.

Charles Watson, FD's group chief executive based in London, said: 'Obviously having to translate our numbers into dollars for FTI's reporting purposes greatly distorts the true picture of how FD has performed given the recent very dramatic strengthening of the dollar relative to the pound. On a constant currency basis, revenues declined 13% in the first half of the year, reflecting the decline in global capital market activity.'

FD's business did stabilise in the second quarter and revenues grew by 4.2 per cent during this period compared to the first quarter.
FTI stated: ‘Most recently, the segment is beginning to experience increasing activity in capital market related activities including possible IPO's in Asia and strategic M&A assignments.'

In recent weeks FD has won a brief to explain the recapitalisation of the Iceland banking system.

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