National CineMedia, one of two dominant cinema advertising networks in the U.S., saw total revenues increase 3.1% from $435.4 million in 2011 to $448.8 million in 2012, the company reported this week. The positive result was due to growing advertising revenues, which increased 6% from $386.2 million to $409.5 million over the same period -- more than offsetting a decrease in revenues from NCM’s Fathom Events series, which fell 20.1%, from $49.2 million to $39.3 million.
The fourth quarter saw more modest growth of 1.1% for overall revenues, from $114.6 million to $115.9 million, as advertising revenues increased 2.6% from $101.3 million to $103.9 million, and Fathom Events revenues decreased 9.8% from $13.3 million to $12 million. NCM didn’t offer any details as to why Fathom Events revenues were decreasing.
As reported earlier last year, NCM’s 2012 results included the biggest cinema advertising buy in history: a network-wide campaign by Samsung promoting its new Galaxy S III phone, with a budget of $20 million or more. The campaign ran on 18,000 NCM screens nationwide as part of NCM’s FirstLook pre-show package of entertainment and advertising. It also included a 3D interactive crowd motion game, designed by Audience Entertainment; interactive kiosks and NCM’s Lobby Entertainment Network of 2,800 screens in 1,300 movie theater lobbies; an interactive mobile component using NCM’s Movie Night Out app; and an online component using NCM’s portfolio of movie and entertainment-related sites.
Looking ahead, NCM expects first quarter revenue growth in the range of 0%-6%, to around $79 million-$84 million, and an increase for the full year of 1%-4%, to a range of $455 million-$465 million.