(MENAFN- PRovoke)
WASHINGTON — FTI Consulting’s strategic communications segment saw revenues rise by 19.2% in Q2, a significant lift after a year of Covid casting a pall on business.
Q2 revenues rose to $67.8 million during the three months ending June 30, up from $56.9 million the second quarter of 2020. Excluding the estimated positive impact from FX, revenues increased $7.3 million, or 12.9%, primarily due to higher demand for corporate reputation and public affairs services compared to the prior year quarter.
Adjusted segment EBITDA of $13.5 million, or 19.9% of segment revenues, compared to $10 million, or 17.6% of segment revenues, in the prior year quarter. The increase in adjusted segment EBITDA was due to higher revenues, which was partially offset by an increase in compensation and higher SG & A expenses compared to the prior year quarter.
“It was a very strong quarter on the heels of a really strong start to the year,” said Mark McCall, the global leader of FTI's communication segment.
McCall credited the rise in revenue to demand for the segment’s cybersecurity, business transformation and ESG offerings, as well as services for highly regulated industries such as energy and healthcare.
Thursday’s strong Q2 report follows 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.
The group's revenue dropped more in Q3 than it did in Q2, when revenue declined $2.2 million, or 3.8%, to $56.9 million from the second quarter of 2019.
Business was slightly up, 1.2% , in the first quarter of 2020, during which businesses started changing dramatically due to the coronavirus outbreak. That quarterly lift furthered the growth trend FTI’s communications segment saw in 2018 and 2019, during which revenue grew 16%.
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