National CineMedia(US:NCMI)2025-10-30 22:00Financial Data and Key Metrics Changes - Total revenue for Q3 2025 was $63.4 million, up 2% year-over-year, and within the guidance range of $62 million to $67 million [14][15] - Adjusted EBITDA for the quarter was $10.2 million, exceeding $8.8 million in the same period last year [18] - National advertising revenue totaled $49.9 million, up 6.6% from $46.8 million in the prior year [15] - Total operating expenses decreased to $65.2 million from $69.9 million in the same period last year [18] - Free cash flow for the quarter was negative $1.8 million, an improvement from negative $2.4 million in the prior year [19] Business Line Data and Key Metrics Changes - Programmatic revenue grew approximately four times compared to last year, marking the strongest programmatic quarter ever [6][7] - Self-serve platform revenue increased by 23% quarter-over-quarter, driven by expanded outreach [7] - Platinum revenue was up 19% year-over-year, achieving the highest third-quarter Platinum sales in NCM's history [16] Market Data and Key Metrics Changes - NCM's quarterly audience was 109 million, down 11% compared to Q3 2024, reflecting a decline in overall attendance [4][5] - National revenue per attendee was $0.46, up 20% year-over-year, the highest in the last five years [17] Company Strategy and Development Direction - The company is focused on expanding its programmatic and self-serve advertising capabilities to capture a greater share of the advertising market [6][7] - NCM is enhancing its local sales organization and refining its structure to better align with market opportunities [8] - The company is optimistic about upcoming tentpole releases, which are expected to drive attendance and related revenues [12][23] Management's Comments on Operating Environment and Future Outlook - Management noted that advertiser sentiment stabilized in Q3, with a rebound in demand across key advertising categories [4] - The company expects sustained momentum through year-end, driven by a strong holiday film slate [12][23] - Management expressed confidence in the growth trajectory for 2026, anticipating a strong box office and attendance [41][42] Other Important Information - The company announced a quarterly dividend of $0.03 per share, amounting to $2.8 million, to be paid on November 26, 2025 [21] - NCM has repurchased 3.3 million shares at an average price of $5.78 year-to-date, with additional shares repurchased post-quarter end [22] Q&A Session Summary Question: Can you discuss the programmatic and ad categories adopting that format? - Management highlighted that programmatic revenue was four times higher than last year, with most new clients coming from various segments [26][27] Question: Is the renewal with AMC Theatres affecting profit growth? - Management explained that the extra week in Q4 would lead to higher theater access fees, impacting margins [28] Question: Are advertisers waiting to commit to campaigns for new IP? - Management indicated that advertisers generally buy impressions across various movies, not specifically avoiding new IP [34][36] Question: What is the outlook for 2026? - Management expressed optimism for 2026, citing good momentum from Q3 into Q4 and expected growth in box office and attendance [41][42]