National CineMedia posts revenue growth amid box office dip By Investing.com

National CineMedia Inc. (NCM) has reported a 7.2% increase in total revenue for the first quarter of 2024, reaching $37.4 million, despite a 9% decline in box office attendance compared to the same period in 2023.

The growth was attributed to higher revenue per attendee and an increase in national advertising spend. The company’s national revenue saw a significant increase of 31% with a large portion of this revenue being secured through upfront commitments.

Looking ahead, National CineMedia anticipates a second-quarter revenue of $49.5 million to $51.5 million and has announced a new $100 million share repurchase program.

Key Takeaways

• National CineMedia’s total revenue increased to $37.4 million in Q1 2024, up 7.2% year-over-year.
• National revenue grew 31%, with 70% coming from longer-term commitments.
• The company secured deals with 15 advertisers for its programmatic offering and has nine more in the pipeline.
• A new $100 million share repurchase program was announced.
• Free cash flow reached $22.6 million, the highest in the past 15 quarters.
• Adjusted OIBDA is expected to be between $3.5 million and $4.5 million for Q2 2024.
• Despite a weaker film slate, NCM is confident in its Q2 performance due to strong national advertising bookings.

Company Outlook

• NCM expects Q2 2024 revenue to be between $49.5 million and $51.5 million.
• The company plans to continue share repurchases and grow its advertising network.
• NCM is optimistic about its position in the premium video ad space.

Bearish Highlights

• Box office attendance saw a 9% decline in Q1 2024 compared to the previous year.
• Local and regional advertising revenue decreased due to a reduced movie slate and certain sales not returning.
• The company anticipates weaker attendance in Q2 due to a less favorable film slate.

Bullish Highlights

• Despite the box office dip, revenue per attendee increased, driving revenue growth.
• The company secured a substantial portion of its revenue from long-term upfront commitments.
• National CineMedia remains a leader in the premium video ad space with strong free cash flow.

Misses

• Local sales were negatively impacted by lower attendance and the absence of notable contracts in Q1.

Q&A Highlights

• NCM is focusing on optimizing their cinema business but is open to diversification in the future.
• The company expects to benefit from political ads, especially in swing states.
• NCM’s core advertisers, particularly in…