National CineMedia’s Q4 Revenue Up 10.8%; Full Year 2015 Revenue Up 13.3%
Gail Chiasson, North American Editor
Centennial, Colorado-based National CineMedia Inc., the managing member and owner of 43.8% of National CineMedia, the operator of the largest in-theatre digital media network in North America, has announced consolidated results for the fiscal fourth quarter and fiscal year ended December 31, 2015.
Total revenue for the fourth quarter ended December 31, 2015 increased 10.8% to $136.4 million from $123.1 million for the comparable quarter last year. Adjusted OIBDA increased 3.7% to $75.2 million for Q4 from $72.5 million for the fourth quarter of 2014. Net income was $6.6 million, compared to net income of $8.1 million, for Q4 2014.
Total revenue for the year ended December 31, 2015, increased 13.3% to $446.5 million from $394.0 million for the comparable period last year. Adjusted OIBDA increased 15.4% to $229.9 million from $199.3 million for the full year of 2014. Net income for the fiscal year of 2015 was $15.4 million compared to net income of $13.4 million, or income of $0.23 per diluted share for 2014. As adjusted to exclude costs associated with the terminated merger with Screenvision, an income tax reserve and certain other non-recurring items set forth in the table at the end of this release, net income for the full year of 2015 would have increased 42% to $0.51 per diluted share from $0.36 per diluted share for the full year of 2014.
Commenting on the Company’s 2015 operating results, Andy England, NCM’s CEO, said, “2015 was a very strong year for National CineMedia with record revenue and Adjusted OIBDA derived from advertising. These results reflect higher national and local advertising revenue, as well as higher utilization and pricing compared to 2014. Our medium was embraced across the advertising community as a result of high Millennial movie theater attendance and increased fragmentation across the media landscape.
“We enter 2016 with a strong platform and an enviably stable position in the fast changing premium video advertising segment. We continue to strengthen the core of our business by upgrading our targeting and data analytics tools, while also building new digital marketing solutions to enable marketers to reach movie-goers before, during and after the movie.
“With the support of our founding member circuits and network affiliates, as well as the attention of advertisers, we are confident that NCM is well positioned to continue creating value for our stockholders, employees and circuit partners. It is a great time to be in the cinema advertising business and I look forward to working with the talented NCM team to build on our strengths, expand our theatre circuit and advertising client relationship base and capitalize on our strong position within the marketplace.”
For the first quarter of 2016, the Company expects total revenue to be down 2% to 8% and Adjusted OIBDA is expected to be down 13% to 28% from a record first quarter in 2015 that grew revenue and Adjusted OIBDA 10% and 23%, respectively versus the first quarter of 2014. The Company expects total revenue in the range of $71.0 million to $75.0 million during the first quarter of 2016, compared to total revenue for the first quarter of 2015 of $76.9 million and Adjusted OIBDA in the range of $20.0 million to $24.0 million during the first quarter of 2016 compared to Adjusted OIBDA for the first quarter of 2015 of $27.7 million.
For the full year 2016, the Company expects total revenue to be up 4% to 6% and Adjusted OIBDA to be up 4% to 8% from the full year 2015. The Company expects total revenue in the range of $463.0 million to $473.0 million for the full year 2016, compared to total revenue for the full year 2015 of $446.5 million and Adjusted OIBDA in the range of $238.0 million to $248.0 million for the full year 2016 compared to Adjusted OIBDA for the full year 2015 of $229.9 million.
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