The company’s board of directors has initiated a search for a permanent replacement for England, who became CEO in January 2016. “Our CEO search will target a visionary leader who can help innovate around NCM’s platform to ensure that we remain the leading connector between brands and movie audiences,” board chairman Tom Lesinski said in the official announcement.
The management news came as the company reported soft earnings for the third quarter. Total revenue declined 5.4% to $110.1 million from $116.4 million in the year-earlier frame, missing Wall Street estimates. Operating income fell 16% to $42.3 million. On a net basis, income reached 14 cents a share, which barely exceeded Wall Street’s consensus of 13 cents, but it was down sharply from 21 cents in the prior-year period.
Marks spent 14 years as a ESPN and ABC sales executive before joining National CineMedia in 2002, when it was known as Regal CineMedia. He attained the title of president of NCM in 2016.
Shares in National CineMedia have gained more than 30% in 2018 to date. They entered today’s session at $8.61.
The company handles advertising for 21,100 U.S. movie screens in 1,700-plus locations. It has posted steady gains in recent years by positioning in-theater ads as an effective alternative to digital or linear TV ads, which are subject to a range of distractions and measurement issues. Ads in theaters routinely score higher for recall and purchase intent than ads on other platforms.