Latest news with #NationalCineMedia
The Independent
5 days ago
- Entertainment
- The Independent
AMC is reportedly looking to shorten ad pre-show
AMC Theaters recently added a disclaimer stating films would begin 25-30 minutes after the advertised showtime, following a deal to increase in-theater advertising. This decision, stemming from a partnership with National CineMedia, aimed to boost AMC's advertising revenue amidst its weakest first-quarter earnings since 1996. The extended pre-show, which included both new ads and AMC's branded content, caused significant frustration among moviegoers and major film studios. Audiences voiced their annoyance on social media, with many indicating they would simply arrive at the cinema later to avoid the lengthy pre-film content. In response to the backlash, AMC is reportedly considering shortening its pre-show, potentially reversing some of the recent changes.
Yahoo
6 days ago
- Business
- Yahoo
National CineMedia Inc (NCMI) Q2 2025 Earnings Call Highlights: Navigating Challenges with New ...
Total Revenue: $51.8 million for Q2 2025. Adjusted OIBDA: $0.7 million for Q2 2025. National Advertising Revenue: $41.2 million for Q2 2025. Local and Regional Advertising Revenue: $6.4 million for Q2 2025. Operating Expenses: $63.8 million for Q2 2025. Operating Income: $12 million for Q2 2025. Adjusted Operating Expenses: $51.1 million for Q2 2025. Free Cash Flow: Negative $6.8 million for Q2 2025. Cash and Equivalents: $40.3 million at the end of Q2 2025. Dividend: $0.03 per share announced for Q2 2025. Share Repurchase: 3.3 million shares repurchased year-to-date at an average price of $5.78 per share. Q3 2025 Revenue Guidance: Expected between $62 million and $67 million. Q3 2025 Adjusted OIBDA Guidance: Expected between $7.5 million and $11.5 million. Warning! GuruFocus has detected 3 Warning Signs with NCMI. Release Date: August 05, 2025 For the complete transcript of the earnings call, please refer to the full earnings call transcript. Positive Points Programmatic advertiser volume grew by more than 50% quarter-over-quarter, with approximately 70% of second quarter programmatic advertisers being new to National CineMedia Inc (NASDAQ:NCMI). Third quarter ad sales commitments are pacing ahead of last year's levels, indicating improved visibility and confidence in delivering a stronger start to the second half. The company welcomed 12 new advertisers that placed major cinema campaigns for the first time since the pandemic, showing a successful client acquisition strategy. National CineMedia Inc (NASDAQ:NCMI) reached over 115 million individuals across its network in the second quarter, up 24% compared with the second quarter of 2024. The company has reinstated its dividend program, announcing a quarterly dividend of $0.03 per share, amounting to $2.8 million, reflecting a commitment to returning capital to shareholders. Negative Points Second quarter total revenue was $51.8 million, below the guidance range of $56 million to $61 million and down 5% versus the prior year period. Local and regional advertising revenue totaled $6.4 million in the second quarter, down from $9.8 million in the second quarter of 2024, reflecting cautious advertiser sentiment. Adjusted OIBDA for the second quarter was $0.7 million compared to $7.6 million in the prior year, driven primarily by weaker top-line results. Total revenue for the year-to-date was $86.6 million compared to $92.1 million in the same period last year, with national and local advertising revenues declining 4% and 25% respectively. The company faced heightened volatility in advertiser budgets across key verticals such as automotive, consumer packaged goods, and government, driven by broader economic uncertainty and shifting public sector spending priorities. Q & A Highlights Q: The midpoint of the revenue guidance for Q3 indicates an increase year-over-year despite expectations for box office and attendance to be down. Can this trend continue through year-end, especially with a strong film slate and potential year-end ad budget flushes? A: Thomas Lesinski, CEO: We are seeing a more relaxed budgeting environment compared to the tariff debate period. The third quarter pacing is strong, and we have confidence in the fourth quarter due to anticipated films like "Wicked: For Good" and "Avatar." Barring major economic issues, we are optimistic about the momentum continuing into the fourth quarter. Q: Selling, marketing, and administrative expenses have been flat to down. Is the strategic investment in these areas expected to be more back-weighted this year? A: Thomas Lesinski, CEO: We are managing expenses based on market trends, investing in certain areas while finding efficiencies in others. We will adjust our plans as the year progresses, depending on market conditions. Q: Is the strength in Q3 guidance a spillover from Q2 deals paused due to economic concerns, or is it new demand? A: Ronnie Ng, CFO: The strength in Q3 is mostly new business, not just budgets being withheld and then released. This is promising as it indicates new demand specifically for the third quarter. Q: Programmatic advertising seems to be gaining traction. What feedback are you receiving from media buyers, and why is it working now? A: Thomas Lesinski, CEO: Programmatic advertising is becoming a significant part of advertisers' budgets. We are seeing a high percentage of new advertisers through programmatic channels, which is encouraging. The adoption of our platform by advertisers is strong, and we expect it to be more significant next year. Q: How are you addressing the challenge of increased scatter market and reduced upfront commitments? A: Thomas Lesinski, CEO: We have created a new business group focused on finding new clients and increasing awareness of our platform. We are actively engaging with new and existing clients to ensure cinema remains a top advertising choice, especially with the rise of streaming services. For the complete transcript of the earnings call, please refer to the full earnings call transcript. This article first appeared on GuruFocus.
Entrepreneur
02-07-2025
- Business
- Entrepreneur
AMC Theatres Warns Customers of '25-30 Minutes of Previews'
Some film fans applaud knowing when the show is actually going to begin, while others lament sitting through a sitcom-length commercial marathon. AMC Theatres wants to help you plan your next trip to the movies better. The company is officially warning customers to expect 25 to 30 minutes of previews and ads before the main feature begins. The new advisory appears during online ticket purchases, clearly stating that "movies commence 25-30 minutes after showtime." So, no more panicking on the popcorn line that the movie is about to start when you've got a good half hour before the opening credits kick off. The change comes as AMC implements a new deal with National CineMedia, the country's leading cinema advertising network, according to its website. Under this agreement, AMC will now show up to five minutes of commercials after the official start time, plus an additional "Platinum Spot" ad just before the last trailers, writes The Verge. Related: 'We Brought the New York Hustle to Hollywood': How the Movie-Making Couple Behind 'Novocaine' Scored a Creatively-Satisfying Number One Hit This expansion in preshow content is designed to boost much-needed advertising revenue, following an overall drop industry-wide. "Setting aside those first quarters directly impacted by Covid and its aftermath, the January to March industry box office in 2025 was the lowest it has been since 1996," said AMC CEO Adam Aron in the company's first-quarter earnings report for 2025. The move has generated mixed reactions. Some patrons welcome the clarity, appreciating the ability to skip lengthy ads and trailers by arriving later, reports Parade. While others, accustomed to a life of skippable ads, are not so thrilled. AMC maintains that the added ad revenue will help keep ticket prices stable and support the company's long-term stability. Ready to break through your revenue ceiling? Join us at Level Up, a conference for ambitious business leaders to unlock new growth opportunities.
The Independent
01-07-2025
- Business
- The Independent
AMC Theaters will show more ads before movies
AMC Theatres will begin showing more ads before movies starting July 1, resulting in films beginning 25–30 minutes after the listed showtime. This new agreement with National CineMedia aims to boost AMC's advertising revenue, following its weakest first-quarter earnings since 1996, excluding pandemic years. AMC has reversed its 2019 stance against in-theater ads, now joining competitors Regal and Cinemark in a deal it previously rejected. Despite closing 169 theaters since 2019 and a decline in 2024 ticket sales, AMC's CEO Adam Aron remains optimistic about a strong summer box office rebound. The added ad revenue is intended to help AMC maintain steady ticket prices and ensure long-term stability, with AMC Stubs members also receiving a 50 percent discount on Wednesday tickets starting July 9.
The Verge
01-07-2025
- Business
- The Verge
AMC now warns moviegoers to expect ‘25-30 minutes' of ads and trailers
AMC Theatres is making it easier for moviegoers to know the actual start time of their film screening and avoid sitting through lengthy ads. A new notice has started appearing when people purchase tickets via the AMC website, warning that 'movies start 25-30 minutes after showtime.' This already mirrors the estimated runtime of AMC's preshow content, which includes ads and trailers, but now customers will be better informed if they want to arrive a little later without missing the start of their movie. This small change also tracks with a report made by The Hollywood Reporter last week that said AMC will soon start 'addressing the preshow on its ticketing platforms.' Starting today, AMC will also show more ads than before, meaning its preshow lineup may have to be reconfigured to avoid exceeding the 30-minute mark. The company made an agreement with the National CineMedia ad network that includes as much as five minutes of commercials shown 'after a movie's official start time,' according to The Hollywood Reporter, and an additional 30-to-60-second 'Platinum Spot' that plays before the last one or two trailers. AMC was the only major theater chain to reject the National CineMedia ad spot when it was pitched in 2019, telling Bloomberg at the time that it believed 'US moviegoers would react quite negatively.' Now struggling financially amid an overall decline in movie theater attendance and box-office grosses, AMC has reversed course, telling The Hollywood Reporter that its competitors 'have fully participated for more than five years without any direct impact to their attendance.'
