NCMI - National CineMedia: 2024 Looks Like A Write-Off
2024-06-11 05:52:34 ET
Summary
- National CineMedia emerged from bankruptcy in 2023 with a clean balance sheet but weak business fundamentals.
- The company's guidance for Q2/2024 suggests 2024 will be a major down year compared to 2023 for NCMI's ad business.
- The main issue is a weak film slate, which is outside of NCMI's control.
- Investors looking for an industry rebound in 2025 may find better value in beaten-down theater chains.
In February, I wrote a cautious update on National CineMedia, Inc. ( NCMI ). Although the company was operating with a clean balance sheet after emerging from Chapter 11 bankruptcy in late 2023, National CineMedia's business fundamentals were not robust, and I had doubts about whether the company can return to profitability in the near future.
With the company recently reporting fiscal Q1/2024 results, I thought it would be timely to check in on the company, to see how its cinema advertising business is progressing in 2024....
National CineMedia: 2024 Looks Like A Write-Off