National CineMedia Inc (NCMI) Q1 2025 Earnings Call Highlights: Navigating Revenue Declines and ...

Yahoo

07-05-2025

Q : Has the strength of pacing seen in Q4 weakened in Q1, and how is it affecting the upcoming quarter? A : The pipeline remains active, but there are headwinds in certain categories like government and auto due to tariff discussions. The pacing has softened slightly since Q4, reflecting uncertainty impacting advertisers' decisions. However, the scatter business is performing well, with bookings more than double compared to last year. (Thomas Lesinski, CEO; Ronnie Ng, CFO)
Government policy shifts and tariff uncertainties have led to reduced government ad spend and delayed ad spending decisions across various categories.
The first quarter of 2025 saw a 7% year-over-year decline in total revenue, primarily due to a weaker box office performance and advertiser uncertainty regarding tariffs.
NCMI's programmatic and self-serve platforms are gaining traction, with programmatic revenue contributing 3% of total revenue for the first quarter.
The introduction of new products like Bullseye and Blueprint, powered by artificial intelligence, strengthens NCMI's innovative solutions for advertisers.
NCMI has secured a five-year extension of its contract with AMC Theaters, enhancing its advertising inventory and modernizing lobby video screens.
The company has reinstated its dividend and is committed to generating long-term value for shareholders through a share repurchase program.
National CineMedia Inc ( NASDAQ:NCMI ) is well-positioned as the leading platform in cinema advertising with a strong competitive edge and attractive industry tailwinds.
For the complete transcript of the earnings call, please refer to the full earnings call transcript .
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Q: Are you planning to be more flexible with upfront commitments given the current environment? A: While advertisers are expected to be more flexible in future upfront negotiations, we plan to adhere to current cancellation policies for the next two quarters. The upcoming upfront period may see more advertisers buying closer to air dates, and we are prepared to compete in the scatter market with our programmatic and self-serve capabilities. (Thomas Lesinski, CEO)
Q: How is the ability to deliver ads quickly helping with monetization during strong box office periods? A: Quick ad delivery is beneficial when movies outperform, allowing us to capitalize on increased demand. With programmatic capabilities, we can deliver ads within 24 hours, improving utilization and monetization during high-performing film releases. (Thomas Lesinski, CEO)
Q: What is the incremental revenue opportunity from the new AMC agreement, particularly with the Platinum Spot? A: The new AMC agreement allows us to sell Platinum across the entire network, enhancing growth potential. While specific dollar amounts aren't disclosed, Platinum's growth was significant in 2024, and we expect greater impact in the second half of 2025. (Thomas Lesinski, CEO; Ronnie Ng, CFO)
Q: How is NCMX helping compete with other digital video platforms, and what feedback are you receiving from advertisers? A: NCMX's data and targeting tools allow us to compete effectively with digital media companies. Advertisers appreciate the ability to deliver outcome-based results. Our new product, Blueprint, enhances targeting capabilities by using construction data to reach high-intent consumers. (Thomas Lesinski, CEO)
Q: How does the strong upcoming film slate affect media buyers' interest in placing ads with NCM? A: The strong film slate, including titles like Mission Impossible and Jurassic World, generates excitement and positive buzz, attracting advertisers. The consistency and quality of upcoming releases are expected to drive increased interest and ad placements. (Thomas Lesinski, CEO)
Q: What are the current trends in advertising categories, and how are they impacting NCM? A: There is a pause in brand awareness advertising due to economic uncertainty, while performance-based categories like CPG, pharma, and travel continue to invest in marketing. NCM's platform is well-suited for delivering measurable outcomes, attracting advertisers in these sectors. (Thomas Lesinski, CEO)
Q: Can you provide more details on the new product, Blueprint, and its impact on NCM's offerings? A: Blueprint uses real-time renovation permit data to target homeowners engaged in remodeling projects, offering brands a unique opportunity to reach high-intent consumers. This addition strengthens NCM's competitive edge in delivering targeted advertising solutions. (Thomas Lesinski, CEO)
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
This article first appeared on GuruFocus.