National CineMedia reintroduces dividend, plans ad growth

Published 13/03/2025, 12:10
© Reuters

CENTENNIAL, Colo. - National CineMedia, Inc. (NASDAQ: NCMI), the operator of the largest cinema advertising platform in the U.S. with a market capitalization of $1.27 billion, announced the reintroduction of an annual dividend and detailed its plans to accelerate advertising growth at its 2025 Investor Day on Thursday. According to InvestingPro data, the company generated $4.64 billion in revenue over the last twelve months. The company outlined its strategy to invest in technology and talent, aiming to enhance its advertising platform and drive shareholder returns.

The company’s Board of Directors has declared an annual cash dividend of $0.12 per share of outstanding common stock, to be paid quarterly. The first dividend payment is scheduled for April 7, 2025, to shareholders of record as of March 24, 2025. This announcement comes as the stock has experienced significant volatility, with InvestingPro data showing a -40.73% return over the past six months. The dividend is expected to be treated as a return of capital for tax purposes. National CineMedia also plans to accelerate share repurchases under its $100 million share repurchase program, which runs through 2027.

In addition to the dividend announcement, National CineMedia introduced Bullseye, a new addition to its NCMx suite of data-driven solutions. Bullseye utilizes AI-generated creative to deliver hyper-localized messaging at scale, integrating key signals such as market area, geo-targeting, and audience insights to optimize advertising campaigns.

The Investor Day event featured presentations from CEO Tom Lesinski and other executives, highlighting the company’s strategic market position and financial strength. A panel discussion and a Q&A session with NCM management were also part of the event. The full presentation and a replay of the conference are available on the company’s Investor Relations website.

National CineMedia’s strategy includes forming strategic partnerships, developing sales and inventory management tools, and creating self-serve and programmatic offerings to improve the advertiser experience. The company also plans to hire new sales talent to execute its aggressive sales plan.

The company’s forward-looking statements involve risks and uncertainties, and actual results could differ materially from those expressed or implied. Factors influencing these outcomes include theater attendance, competition for advertising expenditures, and technological changes, among others. Analysts maintain a mixed outlook on the stock, with price targets ranging from $2.80 to $4.00 per share. For deeper insights into National CineMedia’s valuation and financial health, including 12+ additional ProTips and comprehensive analysis, visit InvestingPro.

This news article is based on a press release statement from National CineMedia, Inc.

In other recent news, Amcor plc has successfully priced a private offering of $2.2 billion in senior unsecured notes, aimed at repaying existing debt linked to its upcoming merger with Berry Global Group, Inc. The notes are set to mature between 2028 and 2035, with varying interest rates. This financial move is part of Amcor’s strategic preparations for the merger, which has recently cleared significant regulatory hurdles, including antitrust clearances in the United States, China, and Brazil. The merger, anticipated to be finalized by mid-2025, was approved by a substantial majority of shareholders from both companies, meeting a key condition for completion.

Meanwhile, Benchmark analysts have maintained a Hold rating on AMC Entertainment, noting the company’s strong fourth-quarter performance in 2024, which exceeded expectations. The analysts attributed this success to robust consumer demand and strategic execution by AMC’s management. Additionally, DMC Global Inc. reported fourth-quarter sales of $152.4 million, surpassing its guidance, with an improved adjusted EBITDA margin of 7.8%. The company emphasized its focus on cash flow and debt reduction, setting a sales guidance range of $146 million to $154 million for the first quarter of 2025.

These developments reflect ongoing strategic initiatives and financial performances across the companies, with Amcor and Berry moving closer to creating a combined entity in the packaging industry, while AMC and DMC Global continue to navigate their respective market environments.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

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