National CineMedia, which sells on-screen advertising in movie theaters, swung to a profit of $700,000 during its debut quarter as a publicly held company.

The Centennial-based company's revenue soared 66 percent to $74.1 million during the fourth quarter ended Dec. 28 as it added more theater screens to its advertising network and converted founding member legacy contracts.

National CineMedia, a venture of the nation's three largest theater chains, last month raised $798 million in an IPO that at the time was the richest for 2007. The company is using the proceeds to pay off its three founding members, AMC Entertainment, Cinemark Inc. and Phil Anschutz's Regal Entertainment Group. The company's shares are up about 29 percent since its Feb. 7 stock offering.

About 90 percent of National CineMedia's business comes from on-screen advertising, while the rest comes from renting out theaters for meetings and hosting events such as live concerts. The meeting and events revenue more than doubled in the quarter to $6.6 million, bolstered by a contract to rent theaters to government administrators explaining the Medicare Part D to seniors.

"While the meetings and events business is still a small percentage of our revenue, we are hopeful that it will become more meaningful over time," said CEO Kurt Hall on a conference call with analysts and investors.

This quarter, National CineMedia predicts sales of $60 million, up 45 percent from pro forma revenue of $41.1 million a year earlier. The company also said it plans to pay a quarterly dividend in the range of 10 cents to 12 cents a share by midyear.

The company sells ads that run on some 14,000 screens before the feature film and is tapping into advertisers' desire for an audience that can't fast-forward through commercials like they can on television. National CineMedia's Hall said the company has recently had luck attracting new advertisers, including Microsoft and wireless company Cingular.

National CineMedia

NCMI: Nasdaq

$27.01

+ $1.07

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