Financial highlights Q4 2025 Revenue in Q4 2025 amounted to ISK 7,336m, compared with ISK 7,431m in the corresponding quarter of 2024, representing a decrease of 1.3%. Revenue from telecommunications and television services declined by ISK 206m, or 3.7%, year-on-year. Advertising revenue amounted to ISK 798m, compared with ISK 821m in the corresponding quarter last year, a decrease of 2.8%. It should be noted that parliamentary elections took place in the corresponding quarter of 2024.EBITDA in Q4 2025 amou ...

Core Engagement and Performance - Netflix achieved its highest-ever viewing share in the U.S. at 8.6% and in the U.K. at 9.4%, indicating strong performance in key markets [1] - Since the end of 2022, viewing share has increased by 15% in the U.S. and 22% in the U.K., suggesting sustained competitive gains [2] Importance of Engagement Metrics - Engagement metrics are crucial for Netflix's monetization, enhancing pricing power, reducing churn risk, and improving advertising effectiveness [3] - Higher engagement allows Netflix to raise prices selectively without significant subscriber losses [3] Advertising Business Growth - Netflix's advertising business had its strongest quarter in Q3 2025, with record ad sales and a doubling of U.S. upfront commitments [5] - Upfront commitments will contribute to revenue starting late 2025 and into 2026, improving forecast reliability [6] Structural Drivers of Advertising Growth - Netflix offers a unique combination of global scale, engaged audiences, and advanced buying tools for advertisers [7] - The company has transitioned from an experimental phase to a more established execution phase in its advertising business [7] Future Advertising Roadmap - Netflix plans to enhance targeting and media planning tools globally and introduce more interactive ad formats [8] - Management expects advertising margins to expand as the advertising stack matures, despite potential near-term lag compared to subscription margins [9] Financial Guidance - For Q4 2025, Netflix anticipates revenue growth of 17% and an operating margin of 23.9%, with full-year revenue projected at $45.1 billion and a 29% operating margin [10][11] - The slight revision in revenue expectations is linked to tax issues rather than operational weaknesses [11] Upcoming Earnings Report Focus - The upcoming earnings report will focus on confirming margin normalization post-Brazil, continued advertising momentum, and durable engagement gains [12]

Financial Data and Key Metrics Changes - National CineMedia, Inc. reported fourth-quarter revenue of $86.3 million, slightly exceeding the guidance of $82 million to $86 million, but down from $90.9 million in the prior year [22][33] - Adjusted OIBDA for the fourth quarter was $35 million, surpassing the guidance range of $28 to $30 million, compared to $39.8 million in the prior year [22][38] - Full-year 2024 revenue was $240.8 million, down from $259.8 million in 2023, with adjusted OIBDA of $45.7 million compared to $52.7 million in 2023 [24][39] Business Line Data and Key Metrics Changes - National advertising revenue for Q4 decreased to $69.2 million from $71.9 million in Q4 2023, while local and regional advertising revenue fell to $13.5 million from $16.2 million [33] - Attendance for the fourth quarter was 101 million, driven by new titles, while total attendance for 2024 was 390.7 million, reflecting an 11% decline year over year [24][40] Market Data and Key Metrics Changes - The total domestic box office for Q4 2024 reached approximately $2.4 billion, a 26% increase year over year, with the full-year box office totaling $8.6 billion [12][15] - The audience demographic remains strong, with Gen Z and Millennials accounting for 69% of total viewership in Q4 [17] Company Strategy and Development Direction - The company is focusing on innovation and growth, particularly in programmatic and self-serve advertising solutions, which are expected to drive revenue growth in the coming years [31][50] - National CineMedia, Inc. is strategically investing in expanding its sales team and enhancing marketing efforts to support future revenue generation [49][50] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the second quarter of 2025, indicating strong sales pacing and a positive outlook for the remainder of the year despite expected near-term variability [29][48] - The company anticipates a slight decline in first-quarter revenue due to a weaker film slate and seasonal advertising slowdowns, but expects a strong recovery in attendance and advertising demand later in the year [30][48] Other Important Information - The company closed a new revolving facility with US Bank, reducing the cost of debt and annual interest expense, and has no outstanding long-term debt as of now [44][45] - National CineMedia, Inc. has repurchased 2.5 million shares for $13.4 million as part of its $100 million share repurchase program [45] Q&A Session Summary Question: Expectations on advertising headwinds and second half of the year - Management noted encouraging pacing for Q2 compared to last year, but could not provide specifics for the second half yet [55][56] Question: KPI-based ad sales and advertiser retention - Management indicated that half of the business is supported through NCMx, which is significant for advertiser retention and engagement [58] Question: Share of national advertisers still on the sidelines - Management acknowledged the need to calculate the percentage of pre-pandemic advertisers that have yet to return [63] Question: Expectations for attendance growth in 2025 and 2026 - Management stated that attendance is the primary driver of revenue growth, with forecasts for 2025 and 2026 aligning with industry expectations [66][67] Question: Advertiser sentiment compared to prior years - Management expressed that advertiser sentiment is currently positive, with no surprises expected from the industry [72] Question: Potential for higher upfront costs - Management believes they will perform better in the upfronts compared to last year, with a cleaner market environment [76][77] Question: Demand for premium screens and advertiser interest - Management confirmed high demand for premium screens, which is beneficial for attracting large advertisers [80] Question: Local and regional business growth - Management is optimistic about the local business comeback in 2025 and 2026, following reinvestment in the sales team [84]