When you watch those pre-show commercials when you go to the movie theater, you can count it probably being handled by National CineMedia.
In a move to clear their debt slate and grow, the company announced that it will be preparing an initial public offering of 38 million shares at a potential price per share of $18-20. They will be listed on the NASDAQ under the stock symbol "NCMI." They are looking to raise around $674 million, of which the larger portion will go toward its debt of $686.3 million that it owes to AMC Theatres and Regal Entertainment Group.
Some of the advertisers that have been using theaters as an advertising venue in 2005 were American Express (AXP), Verizon (VZ), Hyundai (HYMLF.PK), Nike (NKE), Toyota (TM), Wal-Mart (WMT), and X-Box (MSFT).
Cliff Marks, president of National CineMedia commented: "Retail has also been a big one, with companies like Radio Shack and Wal-Mart really getting serious now. We're also seeing wireless companies like Verizon and Cingular using us more and more."
Over the last several years cinema advertising has grown strongly with statistics from 2005 showing that revenue had grown by 20.6 percent, to reach close to $528 million; up from $438 million in 2004.
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