Versant Media Group has announced its recent quarterly results, marking its first earnings report as an independent entity following its separation from Comcast’s NBCUniversal and subsequent listing on Nasdaq earlier this year. The results showed ongoing challenges in the traditional pay TV segment but also highlighted notable growth in its digital platforms and licensing ventures. The company’s stock experienced a nearly 10% rise in premarket trading following the announcement.
The linear distribution revenue for its pay TV networks—comprising CNBC, MS NOW, the Golf Channel, USA, E!, Syfy, and Oxygen—declined approximately 7% during the quarter, amounting to $1.01 billion. This decrease was attributed to subscriber losses but was partially cushioned by increases in subscription rates. Additionally, advertising revenue fell 5% to $368 million, which, although a decline, was viewed as an improvement relative to the 12% drop reported in the same quarter the previous year.
Conversely, revenue from content licensing surged dramatically, increasing by 113.5% to reach $121 million. This significant growth was largely driven by the licensing of the highly popular reality TV series “Keeping Up With the Kardashians” and other associated content to Disney’s Hulu platform.
Throughout the quarter, Versant emphasized its strong positioning in the sports and news sectors, reporting increases in viewership for CNBC and MS NOW, along with continued positive momentum for the Golf Channel and other live sporting events. Presently, over 80% of Versant’s revenue is derived from the pay TV sector. However, company executives have indicated plans to gradually shift this revenue mix, aiming for a more balanced distribution where 50% stems from digital, subscription-based, advertising-supported, and transactional businesses.
In the first quarter, revenue from its platforms—which includes Fandango, GolfNow, and various direct-to-consumer units—increased by 9.5% to $192 million. CEO Mark Lazarus stated, “We are executing our strategy by extending the reach of our brands, deepening our connection with audiences, and scaling our digital platforms.” He added that the positive performance across their platforms and core brands underpins the company’s confidence in evolving its business model and delivering long-term shareholder value.
Overall revenue for the quarter ending March 31 reached $1.69 billion, a marginal decline of about 1% compared to the same period last year. Analysts had projected revenue of approximately $1.62 billion. The net income attributable to Versant fell by 22% to $286 million, or $1.99 per share, a decline attributed to lower revenue, increased costs associated with becoming a public company, and elevated interest expenses following the spinout from Comcast, which were partially offset by reduced taxes.
Adjusted earnings before interest, taxes, depreciation, and amortization (EBITDA) fell 7% year-on-year to $704 million. However, when comparing the adjusted EBITDA figures from its prior portfolio as a standalone entity, there was an approximately 5% increase, attributed to lower entertainment programming costs and reduced selling, general, and administrative expenses that offset revenue declines.
In line with its commitment to returning capital to shareholders, Versant declared a quarterly cash dividend of 37.5 cents per share for the second consecutive quarter, payable on July 22 to shareholders recorded by July 1. Additionally, the company announced plans for a $100 million accelerated share repurchase agreement, set to commence on Friday and expected to conclude in the second quarter. During the first quarter, Versant repurchased nearly 2.7 million shares of Class A common stock, leaving approximately $900 million in remaining authorization as of March 31.
Notably, Versant serves as the parent company of CNBC.
