- NCMI is an integrated digital media company that focuses on terrestrial and satellite network technology, making its network efficient and scalable
- Seeking Alpha financial expert Julian Lin believes that NCMI’s PPS will rise in 2018 due to larger theater audiences and the financial impact of its MoviePass creating a ‘significant tailwind’ for the stock
- Company integrates marketing – bundling on-screen, lobby, online and mobile exposure
- Noovie brand is designed to connect brands with movie audiences both in and out of theaters
In spite of its reported decline in revenue for 2017, National CineMedia, Inc. (NASDAQ: NCMI) expects generally better conditions in 2018, forecasting annual revenue gains of up to 4.5 percent. NCMI also said that it expects to receive $23 million this year related to integration and other encumbered theater payments, from Cinemark and AMC, associated with the Rave Theatres and Carmike Theatres acquisitions (http://ibn.fm/LglN8).
NCMI holds a 48.8 percent interest in and is the managing member of National CineMedia, LLC. It produces the Noovie brand pre-show in 49 national and regional circuits. Its advertising network includes more than 20,800 screens in more than 1,700 theaters. It has 20-year agreements with the three largest theater circuits in the U.S., according to its 2018 investor presentation (http://ibn.fm/Bt9rZ).
In an article published by Seeking Alpha, financial analyst Julian Lin affirmed a buy rating for the company’s stock, despite NCMI’s recent drop in share price related to the company cutting its dividend. “My 12x price target is $12 which is 15 times free cash flow and a 5.6% yield,” Lin wrote in the article. “Including the 68-cent dividend, this is a 108% total return.” In the article (http://ibn.fm/ZQywU), titled ‘National CineMedia: Wall Street Forgot About MoviePass’, Lin asserts that the investment community “has greatly underestimated the rapidly improving environment for the theater advertising industry.”
He added that MoviePass would have numerous benefits to NCMI in the future. MoviePass’s revamped and lower pricing helped it expand its reach to two million subscribers in January 2018. Lin predicts that this will mean increased theater traffic that may result in increased advertiser demand. The result, he said, is a ‘significant tailwind’ for NCMI stock.
For more information, visit the company’s website at www.NCM.com
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