Versant earnings beat expectations as digital platforms drive growth

Summary

• Versant Media reported third-quarter earnings of 34 cents per share & revenue of $1.59 billion, both exceeding Wall Street expectations.
• Digital platform revenue reached $245 million, a nearly 10% year-over-year increase driven by significant ticketing growth at Fandango.
• Advertising revenue declined 5.3% to $373 million, primarily due to the impact of last year's Ryder Cup.
• Net income for the period ended Sept. 30 was $47 million, or 34 cents per share, compared to $80 million or 56 cents per share the prior year.
• Adjusted EBITDA was $353 million, surpassing estimates of $305 million.
• The company completed four major distribution renewals following its spinoff from Comcast, with 75% of network subscribers under contract into 2028 & beyond.
• Network viewership exceeded 120 million monthly viewers with double-digit year-over-year growth.
• Versant launched direct-to-consumer products for MS NOW & Fandango, with CNBC planning a similar launch next year.
• Full-year revenue guidance remains between $6.2 billion & $6.45 billion, while adjusted EBITDA guidance is $1.9 billion to $2.05 billion.
• Free cash flow expectations were raised to exceed the prior range of $1 billion to $1.2 billion.
• Revenue figures included the acquisition of Full Swing & the sale of SportsEngine.
• Linear TV revenue decreased 5.8% to $935 million due to cord-cutting & subscriber declines.
• WNBA viewership on USA Sports networks was 25% higher than the prior year's cable average.
• Versant announced a $100 million accelerated stock repurchase program expected to complete in the fourth quarter.