MW This cinema-related stock is up 77% this year amid box-office rebound. It's not AMC or Cinemark.

By James Rogers

In 2025 'we will finally see what could be the new normal,' as the box office continues its rebound, according to National CineMedia CEO Tom Lesinski.

In-theater advertising company National CineMedia Inc. is reaping the benefits of increased movie attendance in 2024 and eyeing a further boost in 2025, according to Chief Executive Tom Lesinski.

Set against this backdrop, the company's shares (NCMI) are up 77.4% this year. Shares of movie-theater chains AMC Entertainment Holdings Inc. $(AMC)$ and Cinemark Holdings Inc. $(CNK)$ are down 27.8% and up 139.7%, respectively. Shares of high-end movie-theater operator IMAX Corp. $(IMAX)$ are up 73.4% in 2024.

"The health of the exhibitors is obviously improving," Lesinski told MarketWatch, pointing to strong box office performance over the recent Thanksgiving holiday.

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Buoyed by the release of blockbusters "Wicked," and "Gladiator 2," as well as the eagerly anticipated "Moana 2," cinemagoers generated record domestic Thanksgiving box-office returns, according to data from industry tracker Comscore. The domestic box office drew an estimated $420 million over the five-day holiday period, Comscore said.

Lesinski also pointed to the slate of movies coming in 2025, including "Avatar: Fire and Ash," "Mission Impossible - The Final Reckoning," "Captain America: Brave New World," "Superman" and "Wicked 2."

"We will finally see what could be the new normal," Lesinski told MarketWatch. "Hopefully it's a year of rebirth after four years of tough dynamics."

Related: IMAX's stock is up more than 70% this year. Here's why an analyst sees more room to run.

"Clearly the consumer demand is there," he added.

The movie theater industry was hit hard by the disruption of the COVID-19 pandemic and was also impacted strikes from Hollywood writers and actors. "We took a punch to the nose, we took a punch to the gut," Lesinski said. However, there is now "a tremendous amount of optimism," Lesinski said.

Set against this backdrop, National CineMedia added about 40 new advertisers this year, according to Lesinski. "We expect to grow our business even more with new advertisers in 2025," he said.

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Last month, National CineMedia launched what it describes as the first-ever 4DX ad spot in the U.S. Tied to the movie "Wicked" and launched in partnership with movie-theater chain Regal, Comcast Corp.'s $(CMCSA)$ Xfinity and immersive platform CJ 4DPLEX, the ad combines on-screen visuals with synchronized motion seats and environmental effects like bubbles, wind, and lightning, according to National CineMedia.

The ad was launched in nearly 60 Regal cinemas. "I think it's another way of showing that movie theaters can be different from a streaming experience," Lesinski said. "It's a win for the movie industry - it's providing an experience you can only get in the cinema."

-James Rogers

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December 10, 2024 15:02 ET (20:02 GMT)

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