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Movie theaters may have reopened industry-wide due to successful vaccine rollouts, but in-cinema advertising network National CineMedia warns marketers have yet to make big screen ad buys.
“Despite the increase in network attendance, in-theater advertising revenue for the second quarter of 2021 remained significantly below historical levels as management believes many advertisers continued to delay making commitments until they confirmed that industry attendance had achieved necessary critical mass,” the cinema advertising company said in a statement as it released its latest financial results.
For the second quarter to July 1, National CineMedia saw revenue jump to $14 million, against a year-earlier $4 million. And the company saw its second quarter loss widen to $29.6 million, compared to a year-earlier loss of $23.8 million.
Given its low revenue levels and “future market uncertainties,” National CineMedia said it has continued to manage its balance sheet via cost-control measures.
“While the COVID-19 pandemic makes it challenging for management to estimate the future performance of our business, particularly over the near to medium term, the company began to ramp up its business during the second quarter of 2021 and expects to continue to increase advertising revenues in the third and fourth quarters of 2021,” the cinema advertising network added in its commentary.
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