Versant Media on Tuesday reported quarterly earnings and revenue that beat expectations and reaffirmed its full-year 2026 guidance, citing strength across its portfolio and growth in its platforms revenue.
The media company reported $245 million in revenue from digital platforms including Fandango, marking a nearly 10% year-over-year increase. Versant said Fandango saw "significant growth" in ticketing revenue in the third quarter, notching its highest level since the pandemic.
Advertising revenue, however, slipped to $373 million during the period, down 5.3% from last year, primarily due to the impact of last year's Ryder Cup, according to the company.
The Versant portfolio includes CNBC, MS NOW, Golf Channel and other cable and digital properties.
Here's how the company performed in its third quarter, compared with what Wall Street was expecting, based on a survey of analysts by LSEG:
- Earnings per share: 34 cents vs. 5 cents expected
- Revenue: $1.59 billion vs. $1.57 billion expected
Versant completed four major distribution renewals this year following its spinoff from Comcast's NBCUniversal.
"We understood the questions raised at the time of the spin about our ability to secure attractive carriage renewals," CEO Mark Lazarus said on a call with analysts. "We've now answered that question: 75% of our network subscribers are now under contract into 2028 and beyond, so we have clear visibility going forward."
During the third quarter, Versant said, its networks reached more than 120 million viewers monthly and its aggregate viewership grew by double digits year over year. The company also launched MS NOW's direct-to-consumer product and Fandango's on-demand product as new growth drivers. CNBC is expected to launch a direct-to-consumer product next year, Versant said.
For the period ended Sept. 30, Versant recorded net income of $47 million, or 34 cents per share, compared with $80 million, or 56 cents per share, the year prior.
Adjusted earnings before interest, taxes, depreciation and amortization was $353 million, beating Wall Street estimates of $305 million, according to StreetAccount.
Revenue fell slightly to $1.59 billion from $1.66 billion in the year-ago period. The company said its revenue figure included the acquisition of golf simulation company Full Swing and the sale of sports management software company SportsEngine.
The company reaffirmed its full-year revenue outlook of between $6.2 billion and $6.45 billion and its adjusted EBITDA outlook of $1.9 billion to $2.05 billion. It adjusted part of its full-year guidance, saying it now expects free cash flow to exceed the prior range of between $1 billion and $1.2 billion.
"We're building on strong relationships we already have with consumers, advertisers and distributors," Lazarus said on the call. "We're finding new ways to reach and serve those audiences. We have the brands, the financial strength and the people to execute this transition successfully."
Versant began trading as a standalone company on the Nasdaq in January after separating from Comcast. Though it began largely as a portfolio of cable networks, Versant executives have said they intend to diversify the company's revenue mix to eventually draw 50% from digital, platform, subscription, ad-supported and transactional businesses.
During the third quarter, revenue from linear TV decreased 5.8% to $935 million as the segment sees pressure from cord-cutting and subscriber declines.
Live sports continues to be a major driver for the company. Versant said it saw "robust audience engagement" in the third quarter and that WNBA viewership on Versant's USA Sports networks was 25% higher than the prior year's cable average.
Versant also announced an additional $100 million accelerated stock repurchase program beginning Wednesday. It expects that transaction to be completed during the fourth quarter.
Disclosure: Versant Media is the parent company of CNBC.