National CineMedia, Inc. Q3 FY2025 earnings call

• Advertiser sentiment stabilized with demand rebounding in key categories like retail, automotive, etc. Q3 audience was 109 million, down 11% YOY but attendance improved in the back half of September. - Programmatic revenue was 4x YOY, self-serve revenue up 23% QOQ. - Local sales transformation ongoing with added talent and refined structure. - Platinum Spot had 89% ad recall in a tech campaign, 4DX had 85% ad recall in automotive. - Strong holiday slate ahead with Wicked, Avatar, Zootopia 2 driving advertiser demand.

Total revenue for Q3 was $63.4 million, up 2% year-over-year. National advertising revenue was $49.9 million, up 6.6% from the prior year, driven by strong scatter demand and improved inventory utilization. Local and regional advertising revenue was $9.6 million, down from $11.4 million in the prior year. Programmatic revenue grew 82% sequentially, achieving the strongest Programmatic quarter ever. Platinum revenue was up 19% year-over-year, with revenue per attendee up 33% YOY. The 4DX format had about 85% ad recall in a recent automotive campaign. NCMX data platform enhances campaigns with data-driven targeting.

For Q4, revenue is expected to be between $91 million and $98 million, and adjusted OIBDA between $30 million and $35 million. The fourth quarter has an additional week compared to the prior year, leading to expected total attendance growth outpacing industry trends but lower revenue per attendee due to mix.

• Macro-economic uncertainties could impact advertiser spending. - Fluctuations in box office performance and attendance may affect revenue. - Competition from other advertising platforms could impact market share.

Q: Talk more about Programmatic and ad categories adopting it.

A: Programmatic revenue was 4x YOY, most clients are new, categories are varied, reaching new cinema advertisers.

Q: On EBITDA guidance and revenue growth, impact of AMC renewal?

A: Fourth quarter has an extra week with high attendance, leading to more dealer access fees and margin impact.

Q: Incremental attendance in extra week between Christmas and New Year, impact on ad value?

A: Fourth quarter is a high-attendance period, but demand softens after Christmas holiday despite more attendance.

Q: Trend of advertisers with new IP vs blockbusters?

A: Generally, people buy across movies, not avoiding new IP, with incremental buying for well-performing new IP.

Q: 2026 growth outlook, capital allocation, cost structure?

A: Momentum from Q3 to Q4 expected to continue, committed to dividend, opportunistic with buybacks, and looking at AI for efficiencies and lead generation.