Q2 2025 National CineMedia Inc Earnings Call

Good afternoon and welcome to the National Center media, second quarter 2025 earnings conference call.

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I would now like to turn the conference over to Chan Park Vice President of Finance. Please go ahead.

Thank you operator. Good afternoon. I'm joined today by our chief executive officer, Tom lynskey and our Chief Financial Officer Ronnie

I would like to remind our listeners that this conference call contains 4 looking statements within the meaning of 27. A of the Securities Act of 1933 as amended and section 21e of the security, exchange Act of 1934 as amended.

All statements other than statements of a historical facts, communicated. During this conference call, May constitute 4 looking statements.

These 4 looking statements involve risks and uncertainties.

Important factors that can cause actual results to defer materially from the company's expectations are disclosed in the risk factors contained in the company's filings with DCC.

All 4 looking statements are qualified in their entirety by such factors. Further, our discussion today includes some non-gaap measures.

In accordance with Regulation G, we have reconciled these amounts back to the closest GAAP basis measurement.

These reconciliations can be found at the end of today's earnings release or on the investor relations page of our website at ncm.com.

Now, I'll turn the call over to Tom.

Thank you Chen. Hello everyone and thank you for joining our fiscal 2025 second quarter earnings call.

As we begin today's call, I want to take a moment to thank our team for their resilience and dedication to what has been a particularly demanding quarter.

In the face of a challenging economic and advertising environment, their commitment and strengths are what continues to drive our progress.

And physician and CM for what's ahead at the time of our last earnings call, we were encouraged by strong second quarter pacing while recognizing the ongoing uncertainty in the advertising Market.

Over the balance of the second quarter. We faced a more challenging operating environment than anticipated caution among advertisers, especially in key categories, like government consumer packaged goods and automotive, deepened and response to broader tariff, related Market, uncertainty and evolving government spending priorities.

Further. This quarter is box. Office performance was driven by a handful of unexpected. The welcome breakout hits.

Including a Minecraft movie Lilo and Stitch and centers.

While the success of these films demonstrates, the ongoing recovery of the box office and audience enthusiasm for Cinema. But there are over performance took place during a seasonally slower, advertising period, limiting, our ability to fully monetize those impressions. As a result of these, headwinds are second quarter performance. Did not meet our expectations. Ncm's second quarter 2025 total revenue was 51.8 million with adjusted woven of 7 million.

While this wasn't a quarter, we set out to deliver, we're approaching the back half of the year with optimism.

We are actively taking steps to better. Capitalize on box office momentum and deliver against our strategic priorities, positioning the company for stronger, performance, and long-term growth. We're encouraged by our third quarter momentum, add sales commitments are pacing ahead of last year's levels and improved visibility into the pipeline gives us confidence in our ability to deliver a stronger start to the second half.

Ships towards flexible closer to campaign, dates Solutions.

In the second quarter, we continue to expand our programmatic distribution through new Partnerships. With 2 leading programmatic platforms, providing advertisers with additional efficient pass to purchase ncm's. Premier inventory, notably programmatic, Advertiser, volume grew by more than 50% quarter over quarter with approximately 70% of second quarter. Programmatic advertisers new 10, cm underscoring, the growing appeal of our platform to Performance focused buyers looking ahead. We expect to build on this momentum and triple our programmatic footprint by year end, positioning us to accelerate further into 2026.

Additionally, our self-serve platform is also gaining traction with second quarter Revenue up, more than 30% year-over-year, signaling strong adoption heading into the second half of 2025.

On the local front, enhancing our sales capability Remains the top priority, we are focused on onboarding new talent and taking a targeted approach to engage high-value advertisers at the local and Regional level.

While we recognize his effort will take time, we are confident that a strategic rebuild in local will strengthen our Market position and help maximize the local advertising recovery over the long term. We are also continuing to demonstrate the effectiveness of Cinema as a performance advertising channel to share 1 example. In the second quarter, a national Telecom brand executed at campaign using our new Bullseye product, which featured 253 hyper localized, AI generated apps powered by our NCM data platform. The campaign successfully delivered double-digit gains in foot traffic to the locally promoted stores. Within the first 2 weeks of campaign. Launched following the success, The Advertiser renewed, their commitment with NCM a powerful signal that when advertisers engage with our platform. We deliver impactful measurable results.

Our premium platinum as but also continues to generate, strong demand from advertisers, who recognize the value of Cinema's, High attention environment and ncm's performance measurement capabilities. Our new agreement with AMC which we announced last quarter went into effect in the second quarter and standard is our show format across our exhibitor Network, improving our ability to meet demand for both platinum and post show ad inventory.

To further Drive utilization. We've also introduced added creative flexibility within the Platinum offering at Select theaters, enabling more Dynamic use of the available add window.

As we continue to invest in the business, we are also committed to accelerating new client acquisition, with more targeted Outreach. And a more agile go to market approach. In the second quarter, NCM welcome to 12 new advertisers, that placed Major Cinema campaigns for the first time since the pandemic as we continue to demonstrate the unique value of Cinema. As a high impact advertising Channel, we will deepen existing advertising relationships and strategically respond. Our client base driven by the successful box office, NCM reached over 115 million individuals across our Network and the second quarter up 24%. Compared with the second quarter of 24, as Cinema continues to reclaim, its prominent cultural relevance, we're not just seeing Rising attendance but also a deeper connection between audiences and content. This reinforces our confidence and the continued momentum of the theatrical ecosystem and positions and CM to benefit from the strong content pipeline heading back into the second half of the year.

Looking ahead. Early indicators from the third quarter are encouraging supported by a strong slate. Booked sales are pacing ahead of the same period last year with demand normalizing across key categories, including Auto Wireless retail. And travel importantly, the third quarter is historically front weighted with the majority of Revenue realized in July and August. This Dynamic combined with the strength. We are already seeing in the marketplace, gives us meaningful greater visibility into third quarter performance than we've had at the same point last quarter.

With a more robust sales Pipeline and stabilization in the advertising Market. Compared to the second quarter, we have increased confidence in our ability to deliver on our third quarter Outlook which Ronnie will share in a few moments.

Overall, we're expecting continued box office momentum for a full year 2025.

Despicable Me for we expect the strong and well-paced Theatrical slate to re accelerate the box office during the critical fourth quarter holiday season.

Highly anticipated, 10 pools, such as Wicked for Good, Avatar: Fire and Ash, Zootopia, and Tron, are positioned to drive box office re-acceleration as we close out the year. Combined with standout performances from this summer's blockbusters, including Jurassic World: Rebirth and Superman, this consistent cadence of high-profile releases drives the ongoing recovery in cinema attendance and reinforces cinema's appeal as a premium, high-impact advertising environment, supporting increased interest from both national and local advertisers as we close out the year.

NCM remains uniquely positioned to capture and convert this momentum. The fundamental differentiators of our offering broad reach among highly desirable audiences and immersive premium video format and unmatched. National scale continue to resonate with advertisers seeking performance impact and efficiency.

As Brands look to engage consumers at moments of peak attention and emotional resonance, NCM remains a trusted and proven partner.

With a healthy slate of 10, full movies, improving visibility, and a strong start to the third quarter already underway. We are confident in our ability to perform

We're optimistic about the remainder of fiscal 2025 and the steps we're taking to deliver, sustainable value for partners clients and shareholders with that. I'll now turn it over to Ronnie.

Thank you, Tom and good afternoon everyone as Tom outlined the second quarter presented a number of headwinds that impacted our results, most notably, during the month of May May saw heightened. Volatility in Advertiser, budgets, across key verticals, such as Automotive consumer packaged, goods, and government driven by broader economic uncertainty and shifting public sector. Spending priorities, in addition ongoing tariff, related, uncertainties

Have fueled further hesitation, evidenced by several submitted budgets being withdrawn as advertisers reassessed market conditions. While June showed early signs of stabilization in a more consistent inventory environment, the softness mid-quarter had a meaningful impact on our overall second quarter results.

As a result of these factors total revenue for the second quarter came in at 5 1. 8.

Below our guidance range of 56 million to 61 million, and down 5% versus the prior year period.

The scatter Market continues to represent an increasing percentage of mcm's Revenue mix.

Equating to 40% of national on-screen Revenue in the second quarter.

Inventory. Utilization was up. 12% partially offset by a decline in cpms.

National advertising revenue for the quarter was 41.2 Million, compared with 41.7 million in the second quarter of 2024.

National a revenue per attendee was 36 Cents for the second quarter compared with 45 cents in the same period last year.

Reflecting the 24% increase in quarterly attendance.

Local and Regional advertising Revenue totaled, 6.4 million in the second quarter down from 9.8 million in the second quarter of 2024 reflecting the cautious Advertiser sentiment, we've seen across the broader Marketplace.

Consistent with first quarter Trends, we experience reduced contract, volume and smaller deal sizes, particularly across categories, such as dining Automotive, Wireless and Healthcare.

Sectors that have remained sensitive to shifting economic signals.

The year-over-year decrease also reflects the recategorization of certain clients from local to national. Excluding that change would have resulted in a less pronounced decline.

These headwinds were partially offset by growth in the travel and Professional Services categories. Demonstrating that when aligned with the Right audience and value proposition, local markets, continue to present meaningful opportunities.

Brands. Adapt to ongoing tariff uncertainty regain confidence.

And begin to normalize their advertising budgets.

Additionally, a robust length of Highly anticipated. Blockbusters is set to debut over the balance of the year with Advertiser demand or ready. Materializing.

These Temple releases are expected to be significant drivers of growth in the second half.

Turning to our expenses. Second quarter operating expenses were $63.8 million, down slightly compared with the prior year. Operating income was negative $2 million compared to negative $9.3 million in the same period last year. Excluding one-time items, depreciation, amortization, and non-cash, share-based compensation, our adjusted operating expenses were $51.1 million, an increase of $4 million or 8% compared to the prior year. This increase was primarily attributable to higher attendance-driven costs, with exhibitor fees rising $4.2 million or 16%, while SG&A expenses declined slightly versus the prior year, reflecting our continued cost management efforts. Second quarter adjusted operating income, excluding non-cash charges and one-time items, was...

0.7 million compared to 7.6 million in the prior year.

Driven primarily by the weaker Topline results total and lever free cash flow for the quarter as defined by cash flow from operations less Capital expenditures was -6.8 Million as a reminder, our fourth quarter 2024 results, included approximately 13 million in advance payments from clients for advertising scheduled to run throughout 2025 of which 4 million is attributable to the second quarter.

As a result, these upfront payments will affect year-over-year comparability of free cash flow generation in 2025.

Year to date NCM has generated total revenue of 86.6 million compared to 92.1 million in the same period last year.

National and local advertising revenues declined 4% and 25% respectively.

Primarily reflecting softer Advertiser demand amid ongoing economic certainty, total adjusted oil for the period was -8.3 Million compared to 1.9 million in the prior year. Driven by the revenue shortfall resulting from the weaker add Market.

Turning to our Consolidated balance sheet.

At the end of the second quarter, NCM had 40.3 million of cash, cash equivalents restricted, cash and marketable, securities and zero outstanding debt.

We remain committed to a capital allocation strategy, that delivers value by balancing investment in the future of NCM and returning Capital to shareholders through our share repurchase and dividend programs.

Under the dividend program. We reinstated this year, we announced a quarterly dividend of 3 cents per share today, amounting to 2.8 million.

This quarter's dividend will be paid on, August 29th, 2025 to stockholders of record, on August 15th, 2025.

To provide an update on our 100 million share repurchase program year to date. NCM has repurchased 3.3 million shares at an average price per share of 5.78 for a total of approximately 18.8 million.

This brings our total shares repurchased, under this program to 5.9 million shares at an average price of 5.51.

For a total of approximately 32 and a half million.

We are encouraged by the momentum we've seen so far in the third quarter.

The first 2 months which historically, accounted for the majority of third quarter Revenue due to the summer box office, slate and seasonal audience upticks.

To invest in our inventory, forecasting capabilities to enable us to price and package our inventory more dynamically.

Delivering greater value to advertisers.

While helping us drive higher utilization.

With improved planning tools. Increase visibility into Advertiser pacing and category, demand, and continue to investment in our strategic priorities. We are confident in our ability to deliver a stronger third quarter.

With this said, we expect third quarter Revenue to be between 62 million and 67 million.

Reflecting improved, Advertiser commitment and sustained theatrical strength. We anticipate adjust the overall in the range of 7 and a half billion.

To 11 and a half million.

Supported by higher utilization.

Discipline. Expense management.

And improving market dynamics.

As we look ahead, we are focused on discipline execution of our strategic priorities from accelerating investment in programmatic. And self-served to deepening Advertiser relationships, at both the national and local levels with a robust film slate on deck and signs of strengthening Advertiser demand. We believe we are well, positioned to drive improved performance in a back half of the year.

And lay the foundation for sustainable long-term growth.

Operator. Please open the line for questions.

We will now begin the question and answer session.

to ask a question, you may press star then 1 on your telephone keypad,

If you are using a speaker-phone, please pick up your handset before pressing the keys.

To draw your question. Please. Press star. Then 2

At this time, we will pause momentarily to assemble our roster.

Our first question is from Eric, Walt, with Texas Capitol Securities. Please go ahead.

Hey, good morning, Tom and Ronnie. Um, our good afternoon, a couple questions. Um, I guess, first off, um, you know, the midpoint of the, um, the revenue guidance for Q3 indicates, um, you know, an increase um, year over year. Um, even with an expectation for, you know, box office.

An attendance to be to be down. Um you know, with a tough comp against last year, which, you know, code, demit trades, um your ability to drive, you know, add share even in in, in a tough environment. Yeah, I know. I know you're not giving you a full year guidance or or Q4 guidance, but any reason to to think this shouldn't continue you through your end um you win this ad demand would be combined with

a strong film slate in any potential for kind of, you know, kind of year end, you know, ad budget, flushes and kind of 1 that last point, you know, what are your thoughts around, as you kind of, you know, you know, dollars that kind of weren't spent maybe in the first part of the year and the second quarter around kind of uncertainty with with um,

uh uh, you know, tariffs and kind of where the economy was, what are you going to hear in your thoughts and kind of, historically, how this kind of played out as you kind of move through the year and kind of have a dollars of kind of uh uh, loosen it up.

Well, yeah, it's a good question, and it's exactly what we should be focusing on. I think what we're seeing is a more relaxed approach to budgeting, which we didn't see in the middle of the tariff debate.

and the pacing that we're seeing in the third quarter,

Um, is very very good compared to last year.

um, so it it in, in my view, you know, we've we've gotten at least, you know, a significant amount of confidence back related to what

Seemed to be a little bit of an issue in the second quarter um and granted, it was in very limited categories. In the second quarter where that was happening. It was mostly government and automotive and cpg. But the third quarter doesn't seem to have had any impact for that.

Um, it's a little hard to say right now how the fourth quarter um, is shaping up. Um, we know that there's obviously some great movies and we've got a lot of traction already, you know, in our Pipeline, on Wicked, for good and Avatar. And some of the others. So, I think, you know, borrowing any major, you know,

Third quarter. And that momentum continuing into the fourth quarter.

Got it. And then just um last question. Um I know at the start of the year, I guess. Um yeah, on the fourth quarter call.

Um, you know, an expectation for, you know, strategic investing this year around, you know, the sales team marketing, um, you know, but so far in the first quarter and the second quarter, you know, selling marketing and administrative have been, you know, flat to, you know, down and really haven't seen that play out. Is that what you expect that to be more back cap? Weighted? Has that kind of been been pushed down, kind of. What are your thoughts on? How that's, you know, how should we think about that for this year now?

So, so Eric, that's that's a great observation about how we're managing our expenses versus, you know, as as the business is trending through throughout the year. Um, you know, with with that said,

You know, it's something that our team, uh, really focuses on is how how we're, you know, how we are monitoring our operating expenses? How we're investing into our team versus kind of what we're seeing in in the current market and we are investing into, um, certain things that that we called out. Um, earlier this year, obviously, we're also trimming in some parts of the business that we find more efficiencies on and we're continuing to do that, right? So, so there's some offsets versus some of the investment and that's how we're continuing to invest into sales.

um, you know, in the, in the current environment

Got it. She was expecting things to improve in the back half of the year that maybe something some of the stuff that wasn't spent the first half of the year, maybe maybe play on the back, half.

Yeah the way I would say is is we're just going to have to see on the pace of the Improvement. Um and and uh, you know, to make that determination. So uh, you know, we don't we obviously have a set plan but but quite frankly we you know, we we kind of change that plan as as things play out. So I wouldn't say it's it's definitely for sure that

You know, we're we're going to continue to invest, we're just going to have to see um how the rest of the year continues to go.

Perfect. Thank you both.

You're welcome. Excuse me. The next question is from Mike Hickey with the Benchmark Company. Please go ahead.

Hey, Tom Ronnie, chant, thanks for taking our questions. Um, just the first 1 on, um, the 32 guide, nice to see.

Strength there, especially in a difficult uh box. Uh just curious Ronnie. If if any of that is sort of a spillover from 2, few may maybe some

Some deals that got paused just because of economic concerns here that, you know, lost in the tariff wash, you know, or if that's sort of a...

A clean Q3 in terms of what you're seeing in terms of demand that we could extrapolate into Q4 and Beyond.

Yeah, I think, I think most, you know, in what's embedded, in our guide, when we, when we, when we're looking at it and quite frankly, obviously the third quarter is really uh front half weighted, right? So, so really the majority of the revenues earned in July and August, not so much in September. What, what we've seen thus far in the business is, um, mostly new business for, for the third. So that's I think what's actually the most, you know, promising part about it is, is it's not necessarily, uh, you know, budgets being withheld for a very, very long time. And then also, you see a rush, and that's why you see the, the upside in the third versus the, the prior year, that these are a lot of brand new businesses, that that actually got placed uh, specifically in the third quarter.

Nice. Good to hear. Uh, also nice to hear your, your programmatic um, looks like it's

Start starting to to get some traction here. Um, just curious like, you know, I think last quarter maybe it was 2% of your business. You look at the broader

So clearly, you know, investing in programmatic 2 years ago and rolling it out, you know, was rapidly as we can and continuing to roll out against all the platforms.

Was a prudent idea.

Um, and I think most meaningfully is the percent of new buyers or new advertisers that were getting on a prom, programmatic is really significant.

Um, in fact that's even higher than than we had forecasted.

So, um, we're not—we can't give you a number just yet on where we are in programming.

But I can tell you that all the metrics that we're looking at particularly the new advertisers that are coming in the increases quarter to quarter.

Um, and the strong adoption of the platform by advertisers is really encouraging.

Um and it's particularly I think going to help on our self-serve side on local as well.

So, um, you know, we've been talking about programmatic on these calls for over 2 years and, um, it's certain I think paying off in the way we hoped it would, and I think it's going to be even more significant obviously in going into next year.

Yeah, last question, can you sort of talk to us about, um, that maybe ways that that you can think about increasing your visibility? And I mean, Tom when you look back on on your business you used to have a big upfront and you know that would pad, you know, if I remember, right, maybe 60 to 70% of your revenue and now just a digital is, I think in general, you're seeing a, you know, a larger mix uh to scatter.

And then you have disruptions on tariffs, and, and the economy. It just seems like it's must be much more challenging, uh, for you guys to sort of guide your business and and that environment, uh, where buyers can sort of move in and out very quickly. So, are there ways uh, that you see, you know, Katherine in your team in terms of, uh, trying to build, uh, better visibility with your media buyer, uh, Partners, um, in terms of steering the street and obviously your business as well.

Yeah, I I think that's a really important, you know, topic and and clearly when The Upfront was a bigger part, that's not just of our business but of everybody's business. Um, there was, I would say less FaceTime involved because so much of the percentage of your buy was coming in in advance and getting committed. Um, what we've done is created an entire new business group, um in our sales team.

That's now exclusively charged with finding new business with new clients.

And this team which is growing literally every quarter um their sole job is to get out and make sure that the new advertisers are aware of our platform.

Our current team, you know is much more responsible for going after our, our our existing customers as well as for the advertisers. And and we do a lot of, you know, big events. You know, we, we we sponsored, you know, the cam Lions fairly recently prior to that, we had a big event at Sundance. So I, I think the awareness levels are actually quite good. And and I think the trust in the platform and the data metrics around, it are are very well known and obviously reinforcing those. And I think that's why, you know, we're having such a nice bounce back in Q3 as as the pacing goes

So um, I can tell you, you know, we're all advocates for this industry. Um, it's what I spent a lot of my time on personally and um, you know, there isn't a week that goes by where we're not advocating, either directly to new clients or existing clients making sure that Cinema stays at the top, top of mind uh, particularly in light of the streaming, guys, you know, becoming more and more significant.

Okay, thank you guys. Good luck.

You're welcome.

The next question is from Alicia Reese with wedbush Securities. Please go ahead.

All right, thanks. Um, hi Tom. Hi Ronnie. How are you guys doing?

Hi Alicia. Thank you for participating in the call.

Yeah, thanks for taking my question.

Quarter guidance. Uh, what is baked into that in terms of, um, cpms either year-over-year or sequential? Um, decline flat, um, versus utilization, expectations, can you share that with us

Yeah, sure. So

For for the third quarter. Obviously uh, you look at the middle of the guy, you know, we we are pointing to uh, a year on year improvements versus last year. In terms of um,

And also cpms to be relatively stable on a, on a year-on-year basis. Um, we've seen definitely better utilization thus far for the quarter, uh, in particular, you know, obviously here in in um, in the July month, that's that's passed.

So that's what's, what's baked into? Um, into the guidance in terms of the kpis?

Thanks and the the inventory forecasting capabilities. We're talking about um seeking to improve. Um is that going to get require a significant investment or is that relatively light investment? And the the result of that, uh, presumably is just better utilization, um, such that is when cpms eventually improve. You know, coming out of, uh, uh, the current tariff situation. We would assume that that could drive some, some nice Revenue gains. Perhaps, can you give us a little more color on on those statements? Yeah, yeah. So, so on that, you know, it, it's actually that Tool, uh, specifically is actually part of the, the number of things that we highlighted in our investor day. Um, and also in the beginning of year, in terms of, uh, capex related Investments. Um, so it is it is um, we're not we're not done with that yet, by the way. So we're still, we're still working to implement that system, uh, into our existing system, which is a little bit comp.

Complicated. Uh, so we're not getting the full benefit of it right now. Um, so so I think that's still to come. And once we once we do that, it's really finding, uh, or improving utilization, you know, in in seasonally slower months, right? Because that's, that's actually the harder part. So, I, I would suspect. It's, it's definitely for us by doing this. It's, it's really a play on improving utilization, uh, increasing ad loads, uh, really throughout the year, uh, is is the biggest lover.

Perfect. Um,

The local Market expansion opportunity with the bullseye AI Tech. Um,

A comment you made on the, um, in your prepared marks suggested that, um, there's additional investment that could be made to expand that. Um, or perhaps it's, um, it's just a big push in that. So, I'm curious is that, um, do you need to expand the tech? Their expand, the sales Personnel, um, or is that just a sales push across the addressable Market to really ramp that up?

So, it's a combination of all those things. Um, it it's not a direct heavy investment. Really we, we have found resources, um, that have allowed us to do this kind of personalization. Um, at a very, um, efficient rate. Um, there is clearly an education involved, um, with our sales team that we have the capability of doing significant, personalization of advertising and localizing it.

Um, you know, pushing out, um, nearly 300 ads in a really short time period. Um, for our clients, you know, had given us the order a week before was was something we couldn't have done um, without, you know, technology and without the help of AI. Um, so it is a, it is a transition and a change for our sales team, particularly locally to be able to have the skill set and the understanding of what we're capable of. Um, but there's nothing like having a case study, you know, and in this case study, you know, we we executed on that something we hadn't done before and then the client was so pleased, they renewed literally the following week.

so, that type of program is getting, um,

literally pushed out to all of our local people um, and they're excited about it and I'm sure we'll get more business out of it from our local advertisers

Seems like you're really early Innings on a pretty exciting opportunity there.

Yeah, we're really happy about it. I mean, we're truly ahead of the curve even compared to, you know, definitely compared to the traditional, you know, media companies. But what we're doing, innovating particularly at scale in a movie theater environment, um, with that kind of personalization using automation is sort of a first of its kind. So we're quite proud of that. And, you know, I honestly it's a testament to the, you know, our team, you know, particularly the sales team and our team that does all of our analytics and strategic work around that, that they've really been staying on top of this.

Um, and it's paid out. So um we're happy about it.

The next question is from Patrick Shaw. With bington research, please go ahead.

um, it's kind of what a follow up about a comment that you had about, you know, being mindful of CTV, I was just curious, you know, as

You know, ad supported plans have become more popular with that, to what extent is that impacting either? Do you see that impacting your utilization or cpms and that, you know, not having as uh I guess a unique footprint in terms of reaching the the younger audiences?

Are you can you you were talking about CTV at the beginning? It kind of broke up for a second pad. Is that what you were referencing?

Is that what you said at the top of it? Yeah, I I'm sorry. Uh, yeah. Just maybe could you talk about like just as the ad supported plans for, for the CTV Services have?

Increased the popularity of what you're sort of seeing just in terms of your cpms and utilization in the marketplace.

Yeah so I I I think you know CTV is only 1 competitive bucket that we're competing in and obviously we're focused on that as 1, that's a growing bucket.

Um, and it's a relatively younger demo, but it's not as young as our demo.

So we're more than anything looking at watching and participating in that transition.

And we're building out another programmatic platform that specifically addresses our ability to deliver within that CTV world. So far, you know, it's hard, honestly, to measure a specific category impacting our platform.

Um, but more than anything, we've had our eye on CTV, we want to be able to compete programmatically in the CTV space so we are going to be on those kinds of platforms. Um,

It's in the very near future.

Okay, thank you.

All right.

This concludes our question and answer session, I would like to turn to the conference back over to Tom lazinski for any closing remarks.

Okay, thank you for joining us today. We appreciate it. Um, We are continuing to take decisive steps to adapt to this changing Marketplace. Um, including investing in our operations, deepening our client relationships, and strengthening, of course, the overall Core Business.

Box office is showing real signs of Vitality and we're now seeing that momentum reflected in increased advertising.

Well, it gives us confidence. It's not just where we're headed but how we're getting there with discipline agility and a clear strategy for the future growth?

So we're grateful for your ongoing support and we look forward to seeing you again soon at the movies. Thank you.

The conference is now concluded. Thank you for attending today's presentation. You may now disconnect