National CineMedia Revenues Rise On Ads, Slip On Events

by , Feb 21, 2014, 2:57 PM
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National CineMedia, one of the country’s two dominant cinema ad networks, reported that total revenues increased 5.9% from $115.9 million in the fourth quarter of 2012 to $122.7 million in the fourth quarter of 2013. Advertising revenue increased 4% from $103.9 million to $108.1 million, while revenues from Fathom Events (sold in late December) jumped 21.7% from $12 million to $14.6 million.
 
NCM said total revenues edged up 3.1% from $448.8 million in 2012 to $462.8 million in 2013. Full-year advertising revenues increased 4.1% to $426.3 million, while revenues from the divested Fathom Events division fell 7.1% to $36.5 million.
 
Looking ahead, NCM chairman and CEO Kurt Hall said the company would continue to “broaden our client base, expand our network reach and improve our technology to make our marketing products more competitive as the video advertising marketplace expands with the growth of online and mobile video impressions.”

He also expressed confidence that despite increasing competition in the video ad marketplace, “our core selling proposition [is] stronger than ever as entertainment programming continues to fragment and ad-skipping technology adoption accelerates.”
 
In January, NCM unveiled Digital Turbo, a new, faster system for bringing digital video ads to theater screens. The system, currently being tested in select markets in San Diego, Los Angeles, Fresno-Bakersfield, Las Vegas, Reno and Hawaii, allows advertisers to get their ad creative into NCM’s FirstLook pre-show program within 72 hours. That’s a substantial improvement over the typical lead-time of 10 to 20 days for cinema advertising, which should benefit regional and local advertising clients that employ time-sensitive promotional advertising.
 
Excluding revenues from the Fathom division, NCM expects total revenues to fall anywhere from 2% to 9%, to a range from $67 million to $72 million, but also forecasted a 2% to 3% increase in full year revenues, to $430 million to $440 million.

"Movie Screen" photo from Shutterstock.

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