By Katherine Hamilton
National CineMedia shares fell after the company said it expects reductions in advertising spending due to government cuts and tariff uncertainty.
The stock declined 23% to $4.92 on Friday, continuing a 33% slide over the past three months. That puts the shares on pace for their largest percentage drop in almost two years.
The Centennial, Colo., company, which advertises in movie theaters, said it expects a temporary delay in advertising spend due to reductions in government spending and ongoing uncertainty about tariffs.
Because of those factors, it anticipates revenue in the first quarter to be $34 million to $36 million, below the $42.6 million that analysts polled by FactSet had been expecting.
Revenue for the fourth quarter fell 5.1% to $86.3 million mainly due to an unfavorable slate and the previous year's outperformance from the documentary "Taylor Swift: The Eras Tour," said the company. Analysts polled by FactSet had anticipated revenue of $84.5 million.
CineMedia had a profit of $24.7 million, or 26 cents a share, in the quarter ended Dec. 26, compared with $23.7 million, or 24 cents a share the prior year. Analysts had expected 18 cents a share.
Write to Katherine Hamilton at katherine.hamilton@wsj.com
(END) Dow Jones Newswires
March 07, 2025 13:30 ET (18:30 GMT)
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