Diana Marszalek 28 Oct 2021 // 8:51PM GMT
WASHINGTON — FTI Consulting’s strategic communications segment saw revenues rise by 31.1% in Q3, the third consecutive positive quarter since Covid casting a pall on business.
Q3 revenues rose to $69.4 million during the three months ending September 30, up from $53.0 million the third quarter of 2020. Excluding the estimated positive impact from FX, revenues increased $15.1 million, or 28.5%, primarily due to higher demand for corporate reputation and public affairs services compared to the prior year quarter.
Adjusted segment EBITDA of $15.5 million, or 22.3% of segment revenues, compared to $8.4 million, or 15.9% of segment revenues, in the prior year quarter. The increase in adjusted segment EBITDA was due to higher revenues compared to the prior year quarter.
Mark McCall, the global leader of FTI’s communications segment, credited the lift to a range of factors including bolstering its expertise with new hires.
“We are seeing those investments pay off,” McCall said. “We are strengthening our global network, making sure that in Australia, Asia and LatAm we are as strong as we are in our core markets of London, Europe and the US because clients are demanding more global support from us.”
Increased collaboration between the communications segment and other FTI groups — the company’s economic, forensic and litigation and corporate finance & restructuring consultancies — also has fueled the growth, he said. So has the demand for ESG offerings.
Thursday’s strong Q3 report follows a positive Q2, when the segment’s revenue rose 19.2%, and a positive Q1, when a 3.7% rise in revenue put an end to the three consecutive quarters of decline the division experienced in 2020.
The segment’s performance in Q1 was a notable lift over Q4 2020, when the group saw revenue drop 8.8%. That quarter, however, was an improvement in business from Q3, when revenue was down 11.7% from the same period of time the previous year, largely due to the Covid pandemic.