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Jun 30, 2022
National CineMedia Q2 2022 Earnings Report
Reported consolidated results with revenue increasing and operating income improving.
Key Takeaways
National CineMedia, Inc. reported a significant increase in revenue for the second quarter of 2022, driven by increased theater attendance and a stronger film slate. Total revenue increased by 379.3% compared to the same quarter last year, and operating income improved from a loss to a gain. The company's adjusted OIBDA also showed substantial improvement, and the management guides to first full year of positive AOIBDA since the pandemic began.
Total revenue increased 379.3% to $67.1 million compared to Q2 2021.
Operating income improved to $5.6 million from an operating loss of $29.6 million in Q2 2021.
Adjusted OIBDA improved to $15.1 million from negative $18.7 million in Q2 2021.
Net loss was $0.7 million, or $0.01 per diluted share, compared to a net loss of $22.7 million, or $0.28 per diluted share, in Q2 2021.
National CineMedia
National CineMedia
National CineMedia Revenue by Segment
Revenue by Segment
National Advertising Revenue
CapyFin.comLocal and Regional Advertising Revenue
CapyFin.com Forward Guidance
The Company expects to earn total revenue of $53.0 million to $57.0 million for the third quarter of 2022 and Adjusted OIBDA in the range of $3.0 million to $7.0 million. For the full year 2022, the Company expects to earn total revenue of $265.0 million to $285.0 million and Adjusted OIBDA in the range of $58.0 million to $75.0 million.
Positive Outlook
- Continued growth in the cinema advertising business is expected.
- Strong film slate anticipated, especially moving into the fourth quarter with several blockbuster releases planned.
- Monthly box office reached nearly $1 billion in June, resulting in NCM achieving pre-pandemic level AOIBDA margins.
- The second quarter demonstrated, that with a strong film slate, large audiences will return to the theaters.
- Company expects to earn total revenue of $265.0 million to $285.0 million for the full year 2022.
Challenges Ahead
- Variants of the COVID-19 virus continue to circulate throughout the United States and may lead to increased health and safety regulations and restrictions.
- Impacts from post-production delays.
- Future market uncertainties.
- Lower revenue levels.
- The Company is currently unable to forecast precisely the timing and/or magnitude of any such amounts or events.
Revenue & Expenses
Visualization of income flow from segment revenue to net income