(MENAFN - The Holmes Report)
WASHINGTON — FTI Consulting's strategic communications segment Thursday reported Q1 2019 revenues rising to $57.7m, up 9.3% from the same period of time the year before, or 13.3% on a constant currency basis.
The increase in revenues was due to an increase in project-based revenues in North America and EMEA, primarily related to corporate reputation services, and a $2m increase in pass-through revenues.
Mark McCall, the communications segment's global leader, also credited the lift to more business from multinationals dealing with issues like trade and tariffs, as well as a growing US tech and telecom practice.
"Clients are increasingly turning to us to help navigate those challenges," McCall said. The comms group also is seeing a rise in the number of clients seeking communications services after working with FTI's other segments on business transformations, he said.
"It was a solid quarter for us," McCall said.
Adjusted segment EBITDA of $11.5m, or 20% of segment revenues, compared to $9.9m, or 18.7% of segment revenues, in the prior year quarter. The increase in adjusted segment EBITDA was due to higher revenues.
The positive start to 2019 continues the growth trend FTI saw in 2018 , during which the segment saw a turnaround in North American business.
The rebound is notable for the segment, which experienced a downturn in revenue during the first half of 2017, followed by a spate of executive changes including McCall assuming the global role after Ed Reilly stepped down as CEO.
FTI as a whole also reported a Q1 lift. The firm's Q1 revenue rose to a record $551.3m, up 10.7% from $497.8m the year before. The increase in revenues was driven by higher demand across all business segments, FTI said.