National CineMedia, Inc. Revenue Results

The National CineMedia Incorporation, a media company that targets consumers who are watching a movie at the movie theater with specific advertisements, announced its revenue results from the third quarter period of 2011.

Revenue from the third quarter has dramatically increased from a little over $125 million in 2010 to approximately $136 million in 2011. Advertisement revenue has also increased during the third quarter period of 2011 from 2010. In 2010, advertisement revenue was a bit over $117 million and is now at $127.1 million.

After the third quarter ended, revenue had increased by 3.7% in just nine months. While the total revenue grew from 2010 to 2011, it is not expected to continue to grow as dramatically for the fourth quarter. Expectations that have been set for the fourth quarter are not as high as the company would have liked them to be.

The Chairman and CEO of National CineMedia, Kurt Hall, has said, “I was very pleased with our record third quarter results. The nearly 8% increase in Adjusted OIBDA over a very challenging Q3 2010 comp that had grown approximately 44% over 2009 reflects the continued expansion of our digital theatre network and the broadening of our national and regional client bases. While I am disappointed with our recent decrease in expectations for the fourth quarter, the decrease in national scatter spending appears to be a short term phenomenon triggered by the sudden change in sentiment regarding the economic recovery in August shortly after brands had made record upfront commitments to cable and broadcast TV networks.”

When asked about the results, Hall also says, “I remain optimistic about the longer term prospects for our business. Our total national advertising commitments for 2012 have increased versus last year at this same time and we may benefit in 2012 from the increase in political spending that will crowd marketers out of TV and force them to look to other high quality video platforms, including cinema.”

The total amount of revenue that National CineMedia Incorporation has earned for the entire year of 2011 is expected to be anywhere from $425-$435 million. In 2010, total earnings for the entire year were approximately $427.5 million. The company is expected to earn more this year.

The National CineMedia Incorporation is one of the top and most important media companies in the United States. National CineMedia reaches millions of consumers in the United States while they are at movie theaters. The company also reaches consumers while they are on the Internet or using certain forms of technology (iPad, cellular phone, etc). National CineMedia advertisements are displayed for popular theaters in the United States. These known theaters include AMC Entertainment, Regal Entertainment Group, and Cinemark.