National Cinemedia Backs 2009 Forecasts

CENTENNIAL, Colo. (AP) — National CineMedia Inc., which sells in-theater advertising, on Tuesday maintained its forecasts for 2009, but called for less revenue than analysts expected in the second quarter.

"While our first-quarter results are strong, the business environment continues to be very difficult creating high levels of uncertainty and providing low levels of visibility into the second half of 2009," said Kurt Hall, National CineMedia chairman and chief executive. "Should the difficult business environment not begin to improve, there may be some headwinds as we are measured against some strong 2008 second half comparables."

The company said it still expects its 2009 operating income and revenue to be about flat year-over-year. In 2008, National Cinemedia reported a profit of $185.6 million from operations, not including depreciation and amortization costs, along with $369.5 million in revenue.

Analysts expect $377.5 million in revenue this year, according to a Thomson Reuters poll.

For the second quarter, the company forecast $84 million to $87 million in revenue, which is below Wall Street's average estimate of $91.3 million. National Cinemedia said it expects operating income of $38 million to $40 million, excluding depreciation and amortization.

The company's first-quarter profit and revenue were about equal to analyst estimates. In aftermarket trading, shares of National Cinemedia slid 93 cents, or 6.3 percent, to $13.80.