Last year Samsung spent more than $20M for movie theater ads, which accounted for 19% of National CineMedia‘s national Q3 revenue. But even with that expected decline, the cinema ad sales company’s results fell short of expectations. It reported net income of $13.7M, -18% vs the period last year, on revenues of $135.1M, -6%. Analysts thought the revenue number would be closer to $137.1M. Adjusted net income of 25 cents a share also missed the Street’s target of 29 cents. CEO Kurt Hall says that while local ad sales grew, as did revenue at the Fathom Events unit, it “could not offset the record national campaign of one of our clients.” (Samsung, still a client, made an unusually big buy to introduce the Samsung Galaxy phone.) National CineMedia also warned investors that revenue and cash flow in the current quarter likely will be “at the lower end” of its projections. It says revenues could go as low as $115M, a drop of 1% vs last year, with cash flow possibly hitting $58M, which also would represent a 1% decline. Still, Hall remains optimistic based on the company’s performance over the last nine months. It “reflected the broadening and diversification of our client base that, while negatively impacting our national CPMs, created a broader base of clients that will use our network for more than product launches.”
By DAVID LIEBERMAN, Financial Editor | Wednesday October 30, 2013 @ 4:43pm EDTTags: National CineMedia Earnings, Samsung
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This article was printed from http://www.deadline.com/2013/10/national-cinemedia-q3-financials-sag-with-loss-of-samsung-ads/