National CineMedia Reports $34.9 Million Revenue in Q1 2025, Down 6.7%

National CineMedia, Inc. (NCM) reported a revenue of $34.9 million for the first quarter of 2025, a decrease of 6.7% compared to $37.4 million in the same period last year. The decline in revenue was primarily attributed to a 4.6% drop in total theater attendance, which fell to 72.3 million from 75.8 million. National advertising revenue decreased by 7.1% to $27.4 million, while local and regional advertising revenue also saw a decline of 7.5%, totaling $4.9 million. Despite these challenges, the company maintained its beverage concessionaire revenue at $2.6 million, consistent with the previous year.

Operating expenses for the quarter decreased by 2.2% to $58.8 million, down from $60.1 million in the prior year. Notable reductions were seen in network operating costs, which fell by 13.9% to $3.1 million, and theater exhibition fees, which decreased by 3.6% to $21.7 million. However, selling and marketing costs increased by 7.0% to $10.7 million, primarily due to higher selling-related expenses. The overall operating loss widened slightly to $23.9 million from $22.7 million year-over-year, while the net loss attributable to NCM, Inc. improved to $30.7 million from $34.7 million.

In terms of strategic developments, NCM entered into a new Exhibitor Services Agreement (ESA) with AMC on April 11, 2025, extending the term by five years and modifying the payment structure based on attendance and revenue generated from advertising. This agreement is expected to enhance NCM's operational framework and advertising capabilities within AMC theaters. Additionally, the company successfully transitioned to a new $45 million senior secured revolving credit facility, which is anticipated to reduce overall interest expenses and extend the maturity date to January 2028.

As of March 27, 2025, NCM's total assets stood at $503.8 million, down from $568.6 million at the end of the previous fiscal year. The company reported cash and cash equivalents of $59.7 million, a decrease from $75.1 million. The total equity attributable to NCM, Inc. also declined to $370.8 million from $411.2 million. The company’s employee headcount remained stable, and it continues to focus on enhancing its advertising platform and expanding its market share in the cinema advertising sector.

Looking ahead, NCM anticipates that the new agreements and operational adjustments will position the company for improved performance in the upcoming quarters. The management remains cautious about market conditions but is optimistic about leveraging its strategic partnerships and advertising capabilities to drive future growth. The company plans to continue monitoring its financial health closely, with a focus on maintaining liquidity and managing operational costs effectively.