National CineMedia Reports 45.8% Revenue Growth to $240.8 Million for Fiscal Year 2024

National CineMedia, Inc. (NCM) reported a significant increase in its financial performance for the fiscal year ending December 26, 2024, with total revenue reaching $240.8 million, a 45.8% increase from $165.2 million in the previous year. This growth was primarily driven by a substantial rise in national advertising revenue, which surged by 63.8% to $188.0 million, up from $114.8 million in 2023. Local and regional advertising revenue also saw an increase of 28.6%, totaling $39.1 million compared to $30.4 million in the prior year. The company attributed these improvements to the full-year consolidation of NCM LLC following its emergence from Chapter 11 bankruptcy in August 2023.

Despite the revenue growth, NCM reported an operating loss of $19.5 million for 2024, an improvement from the $27.3 million loss in 2023. Total operating expenses increased by 35.2% to $260.3 million, influenced by higher costs associated with network operations, ESA Parties and network affiliate fees, and selling and marketing expenses. Notably, the amortization expense rose significantly, reflecting the fair value adjustments made during the reconsolidation of NCM LLC. The net loss attributable to NCM, Inc. was $22.3 million, a stark contrast to the net income of $705.2 million reported in the previous year, which included substantial gains from the deconsolidation of NCM LLC.

Strategically, NCM has made several key developments, including the launch of new advertising formats and digital products aimed at enhancing audience engagement. The Regal Advertising Agreement, effective July 14, 2023, allows NCM to provide on-screen advertisements at Regal theaters for a term of ten years, expanding its advertising inventory. Additionally, the company has introduced programmatic and self-serve advertising options, enabling advertisers to purchase inventory in real-time, which is expected to enhance revenue opportunities.

Operationally, NCM's advertising network consisted of 18,028 screens across 1,408 theaters, with total attendance reaching approximately 390.7 million in 2024. The company also reported a workforce of 254 full-time employees as of December 26, 2024. Looking ahead, NCM plans to continue investing in its digital and data capabilities, with expectations of capital expenditures between $10.5 million and $11.5 million for fiscal 2025. The company remains focused on optimizing its operations and expanding its market share in the cinema advertising industry, despite the challenges posed by fluctuating theater attendance and competition from other advertising mediums.