National CineMedia Says “Nothing Has Changed Day To Day” Despite Regal Showdown
deadline.comThe nation’s biggest cinema advertising network National CineMedia saw revenue rise and losses narrow last quarter as executives cited brisk sales of movie theater ads and insisted that it’s business as usual fo now, even as part owner and major client Regal is swept up in bankruptcy. “From our perspective, nothing has changed on a day-to-day basis with Regal.
We are advertising in all of their theaters without disruption and our business remains unaffected,” said CFO Ronnie Ng. The giant cinema chain is looking to retool or exit a longstanding agreement with NCM as part of the bankruptcy proceedings of parent Cineworld.
NCM has sued Regal for breach of contract. NCM revenue grew 72% to $54.5 million for the three months ended Sept. Net losses narrowed to $8.9 million, or $0.11 per diluted share, from $15.2 million, or $0.19.
Shares closed up 4% at 43 cents. That’s another issue. The stock has been under $1 for so long that that the company risks delisting on the Nasdaq market if it can’t rise above that thresholder for ten consecutive trading days over the next six months.
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