National CineMedia, operator of the nation’s largest in-theater ad network, reported today after the closing bell that it grew revenue by 8.2% year-over-year to $136 million during the third quarter. That’s a quarterly record for the company, which saw its ad revenue jump 8% to $127.1 million; ad revenue is up 3.3% year to date. Net income for the quarter was $16.8 million, or 31 cents a share, compared with $11.8 million and 24 cents a share in 2010. Income for the year is up 40.9%. The company also said that it has authorized a 3Q cash dividend of 22 cents per share of common stock to be paid on December 1 and intends to pay a regular quarterly dividend for the foreseeable future.
For the full-year 2011, National CineMedia said it expects adjusted operating income to be in the range of $210 million-$220 million, down slightly from last year’s $222.4 million. “While I am disappointed with our recent decrease in expectations for the fourth quarter, the decrease in national scatter spending appears to be a short term phenomenon triggered by the sudden change in sentiment regarding the economic recovery in August shortly after brands had made record upfront commitments to cable and broadcast TV networks,” chairman and CEO Kurt Hall said in announcing the results. He said he remains optimistic longer term as he expects political ads to crowd out marketers in the TV space next year and send them to other platforms like cinema.
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