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National Cinemedia 2025 Q1 Earnings Misses Targets as Net Income Improves 11.5%
Generated by AI AgentAinvest Earnings Report Digest
Wednesday, May 7, 2025 3:44 am ET2min read
National Cinemedia (NCMI) reported its fiscal 2025 Q1 earnings on May 6th, 2025. The results showed a decrease in total revenue by 6.7%, totaling $34.90 million, which aligns with the company's guidance but indicates a miss in expectations due to weaker box office performance and advertiser uncertainty. For the second quarter of 2025, expects total revenue to be in the range of $56.0 million to $61.0 million, signaling an optimistic outlook despite current challenges. The company’s guidance remains in line with prior forecasts, aiming to leverage its new partnership with Theatres for improved financial performance.
Revenue
National Cinemedia's total revenue for 2025 Q1 declined to $34.90 million from $37.40 million in the previous year. National advertising revenue was the largest contributor at $27.40 million, followed by local and regional advertising revenue at $4.90 million. Additionally, ESA advertising revenue from beverage concessionaire agreements contributed $2.60 million to the overall total. This performance reflects a challenging advertising environment and weaker box office results.
Earnings/Net Income
National Cinemedia narrowed its losses, recording $0.32 per share in 2025 Q1, an improvement from a loss of $0.36 per share in 2024 Q1. The net loss also improved to $-30.70 million, reducing losses by 11.5% compared to the prior year. Despite the revenue decline, the EPS improvement indicates better cost management and resilience in a tough market.
Price Action
The stock price of National Cinemedia climbed 4.32% during the latest trading day, edged down 2.85% during the most recent full trading week, and decreased 2.52% month-to-date, illustrating volatility in investor sentiment post-earnings.
Post-Earnings Price Action Review
Over the past five years, the strategy of purchasing National Cinemedia shares after a quarter-over-quarter revenue drop and holding for 30 days yielded a 12.77% return. This pales in comparison to the benchmark return of 83.12%. The strategy's Compound Annual Growth Rate (CAGR) was 2.46%, indicating modest growth. However, the maximum drawdown stood at -24.47%, highlighting considerable risk. The Sharpe ratio of 0.15 further denotes moderate risk and returns, suggesting that while the strategy offers some positive returns, it is less consistent compared to the benchmark.
CEO Commentary
“NCM continues to position itself for future growth, with innovation across our advertising platform, an enhanced long-term partnership with AMC, and a dominant position in cinema advertising,” said Tom Lesinski, CEO of National CineMedia, Inc. He acknowledged that the first quarter reflected seasonal softness and near-term advertising market pressures but emphasized that the results were in line with guidance, showcasing the resilience of the business model. Lesinski expressed optimism regarding the robust slate of films for the year and reaffirmed the company’s commitment to delivering sustainable long-term value to shareholders.
Guidance
For the second quarter of 2025, National CineMedia expects total revenue to be in the range of $56.0 million to $61.0 million, with Adjusted OIBDA projected between $2.5 million and $7.5 million. The company aims to benefit from its new partnership with AMC Theatres, which aligns the payment structure more closely with performance metrics, thereby enhancing its financial outlook moving forward.
Additional News
National CineMedia has announced a new long-term agreement with AMC Theatres, extending their partnership through 2042. This agreement improves NCM's financial outlook by aligning payment structures with performance metrics, including attendance and advertising revenue. Additionally, the company declared a cash dividend of $0.03 per share on May 1, 2025, to stockholders of record on May 16, 2025, payable on May 30, 2025. The extension with AMC also includes exclusive rights to lobby advertising and collaboration on modernizing lobby video screens, enhancing audience engagement and monetization potential.
Revenue
National Cinemedia's total revenue for 2025 Q1 declined to $34.90 million from $37.40 million in the previous year. National advertising revenue was the largest contributor at $27.40 million, followed by local and regional advertising revenue at $4.90 million. Additionally, ESA advertising revenue from beverage concessionaire agreements contributed $2.60 million to the overall total. This performance reflects a challenging advertising environment and weaker box office results.
Earnings/Net Income
National Cinemedia narrowed its losses, recording $0.32 per share in 2025 Q1, an improvement from a loss of $0.36 per share in 2024 Q1. The net loss also improved to $-30.70 million, reducing losses by 11.5% compared to the prior year. Despite the revenue decline, the EPS improvement indicates better cost management and resilience in a tough market.
Price Action
The stock price of National Cinemedia climbed 4.32% during the latest trading day, edged down 2.85% during the most recent full trading week, and decreased 2.52% month-to-date, illustrating volatility in investor sentiment post-earnings.
Post-Earnings Price Action Review
Over the past five years, the strategy of purchasing National Cinemedia shares after a quarter-over-quarter revenue drop and holding for 30 days yielded a 12.77% return. This pales in comparison to the benchmark return of 83.12%. The strategy's Compound Annual Growth Rate (CAGR) was 2.46%, indicating modest growth. However, the maximum drawdown stood at -24.47%, highlighting considerable risk. The Sharpe ratio of 0.15 further denotes moderate risk and returns, suggesting that while the strategy offers some positive returns, it is less consistent compared to the benchmark.
CEO Commentary
“NCM continues to position itself for future growth, with innovation across our advertising platform, an enhanced long-term partnership with AMC, and a dominant position in cinema advertising,” said Tom Lesinski, CEO of National CineMedia, Inc. He acknowledged that the first quarter reflected seasonal softness and near-term advertising market pressures but emphasized that the results were in line with guidance, showcasing the resilience of the business model. Lesinski expressed optimism regarding the robust slate of films for the year and reaffirmed the company’s commitment to delivering sustainable long-term value to shareholders.
Guidance
For the second quarter of 2025, National CineMedia expects total revenue to be in the range of $56.0 million to $61.0 million, with Adjusted OIBDA projected between $2.5 million and $7.5 million. The company aims to benefit from its new partnership with AMC Theatres, which aligns the payment structure more closely with performance metrics, thereby enhancing its financial outlook moving forward.
Additional News
National CineMedia has announced a new long-term agreement with AMC Theatres, extending their partnership through 2042. This agreement improves NCM's financial outlook by aligning payment structures with performance metrics, including attendance and advertising revenue. Additionally, the company declared a cash dividend of $0.03 per share on May 1, 2025, to stockholders of record on May 16, 2025, payable on May 30, 2025. The extension with AMC also includes exclusive rights to lobby advertising and collaboration on modernizing lobby video screens, enhancing audience engagement and monetization potential.
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