Versant Media Group — Third Quarter 2026 Earnings Summary

Financial Performance:

• Total revenue was $1,594 million, a 4.2% decrease year-over-year from $1,663 million; excluding SportsEngine and Full Swing impacts, revenue decreased 3.5%.
• Linear distribution revenue was $935 million, down 5.8% year-over-year, driven by subscriber declines partially offset by contractual rate increases.
• Advertising revenue was $373 million, down 5.3% year-over-year, reflecting the prior year's Ryder Cup timing impact.
• Platforms revenue was $245 million, up 9.6% year-over-year; excluding SportsEngine and Full Swing impacts, growth was 17.4%.
• Content licensing and other revenue was $41 million, down 23.6% year-over-year due to content licensing agreement timing.
• Net income attributable to Versant was $47 million, a 41.1% decrease from $80 million in the prior year quarter.
• Adjusted EBITDA was $353 million, down 20.9% year-over-year from $445 million; standalone Adjusted EBITDA was $381 million, down 7.4%.
• Net cash provided by operating activities was $346 million.
• Free Cash Flow was $302 million.
• Total assets were $12,656 million as of September 30, 2026, compared to $12,333 million as of December 31, 2025.
• Long-term debt was $2,813 million as of September 30, 2026, compared to $983 million as of December 31, 2025.
• Deferred revenue was $97 million as of September 30, 2026, compared to $163 million as of December 31, 2025.

Guidance and Future Outlook:

• Reaffirmed full-year 2026 total revenue outlook of $6.2 billion to $6.45 billion.
• Reaffirmed full-year 2026 Adjusted EBITDA outlook of $1.90 billion to $2.05 billion.
• Updated Free Cash Flow expectation to exceed the prior forecast range of $1.0 billion to $1.2 billion.
• CNBC plans to launch a new digital offering early next year.
• Management expects to complete an additional $100 million Accelerated Share Repurchase (ASR) transaction during the fourth quarter of 2026.

Business Segments and Product Lines:

• Networks: Aggregate viewership grew double digits year-over-year; networks reached over 120 million monthly viewers.
• Business News and Personal Finance: CNBC ranked among the top 10 most-watched cable networks during market hours for the eighth consecutive month.
• Political News and Opinion: MS NOW delivered double-digit year-over-year viewership growth, ranking as the second-most-watched cable network; digital engagement included ranking as the No. 1 news organization on YouTube and over 105 million podcast downloads year-to-date.
• Golf: Golf Channel delivered its most-watched PGA TOUR season since 2018; Full Swing was integrated into the golf ecosystem.
• Sports and Genre Entertainment: USA Network ranked among the top five cable entertainment networks; WNBA viewership on USA increased 25% compared to the prior year's cable average.
• Platforms: Fandango recorded significant growth in ticketing and home entertainment sales; MS NOW Membership was launched to connect directly with audiences.

Market and Competitive Landscape:

• MS NOW ranked as the second-most-watched cable network during the quarter.
• CNBC reinforced its position as the leading global business news brand.
• Golf Channel maintained its leadership position in the golf market.
• USA Network remained among the top five cable entertainment networks.

Risks and Challenges:

• Revenue declines in linear distribution and advertising were driven by subscriber declines and event timing impacts.
• Net income decreased due to lower revenue, public company costs, and interest expense following the separation from Comcast.
• Programming costs reflect additional sports rights compared to the prior year, which are typically higher in the third and fourth quarters.
• Forward-looking statements are subject to risks including changes in consumer behavior, distribution agreements, advertising market conditions, and competition.

Management Commentary and Tone:

• CEO Mark Lazarus stated momentum continues with audience growth and the completion of all planned pay television distribution renewals.
• CFO Anand Kini highlighted financial discipline, flexibility, strong Platforms revenue, operating efficiencies, and significant cash flow generation.
• Management expressed confidence in the ability to invest in growth, maintain a healthy balance sheet, and return capital to shareholders.

Other Key Points:

• Declared a fourth quarterly cash dividend of $0.375 per share, payable on January 25, 2027.
• Completed a $100 million Accelerated Share Repurchase (ASR) transaction in the third quarter, repurchasing approximately 2.6 million shares.
• Approximately $700 million remained available under the stock repurchase program as of September 30, 2026.
• Total of $457 million returned to shareholders to date.
• Separated from Comcast on January 2, 2026; prior year financials were derived from Comcast's historical records using carve-out methodologies.
• Acquired Full Swing during the third quarter of 2026; divested SportsEngine during the second quarter of 2026.