NCMI Q2 Revenue Misses, Dividend Paused Amid Captivate Deal
NCMI sits 35% above its 52-week low of $2.78.
Summary
National CineMedia reported Q2 revenue of $58.4M, up 12.7% but below the $59.95M consensus. Adjusted OIBDA improved to $2.1M from $0.7M, while operating loss was $12.8M. The company paused its dividend due to the pending $275M acquisition of Captivate Holdings, which was announced earlier today. Cost savings of $2.7M year-to-date are on track for $11M annualized. The revenue miss and dividend suspension add uncertainty around the transformative deal.
At the time of this announcement, NCMI was trading at $3.75 on NASDAQ in the Trade & Services sector, with a market capitalization of approximately $355.4M. The 52-week trading range was $2.78 to $5.03. This news item was assessed with neutral market sentiment and an importance score of 7 out of 10. Source: Reuters.