NCM Reports Results Q4 And Full Year 2014
Gail Chiasson, North American Editor
CineMedia Inc., managing member and owner of 45.8% of National CineMedia LLC – operator of the largest in-theatre digital media network in North America – last week announced consolidated results for the fiscal fourth quarter and fiscal year ended January 1, 2015.
Total revenue for the fourth quarter of 2014 increased 0.3% to $123.1 million from $122.7 million for the comparable quarter last year. Excluding revenue from the Fathom Events division that was sold in December 2013, advertising revenue increased 13.9% from $108.1 million for the fourth quarter of 2013.
Net income for Q4 was $8.1 million compared to net income of $19.0 million for Q4, 2013.
For the year ended January 1, 2015, total revenue decreased 14.9% to $394.0 million from $462.8 million for the year ended December 26, 2013. Excluding revenue from the Fathom Events division that was sold in December 2013, advertising revenue decreased 7.6% from $426.3 million for the year ended December 26, 2013.
Net income for the year ended January 1, 2015, was $13.4 million compared to net income of $41.2 million for the year ended December 26, 2013.
The Company announced that its Board of Directors has authorized the Company’s regular quarterly cash dividend of $0.22 per share of common stock. The dividend will be paid on March 26, 2015 to stockholders of record on March 12, 2015. The Company intends to pay a regular quarterly dividend for the foreseeable future at the discretion of the Board of Directors consistent with the Company’s intention to distribute over time a substantial portion of its free cash flow in the form of dividends to its stockholders.
Kurt Hall, NCM’s chairman and CEO, said, “2014 was a rollercoaster year for our company as the impact of new digital technology and the continued expansion of online content accelerated changes in consumer viewing habits. Despite these competitive pressures, we finished the year strong with Q4 2014 Adjusted OIBDA growth of 22% over the prior year (excluding Fathom).
“We are projecting further growth in 2015 as our effective competition in the TV upfront process produced national commitments for calendar 2015 that were nearly 75% higher than those booked going into 2014.
“Our ability to continue to compete more effectively in the broader video advertising marketplace will be closely tied to our continued success in the TV upfront sales process and the further expansion of our network. Further network expansion will enable us to offer marketers the broad audiences required to create meaningful targeted campaigns and the market coverage ubiquity that is now offered by our video advertising competitors, including broadcast, cable, online and mobile networks.”
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