Versant reported net income of $47 million, or 34 cents per share, for the quarter ended September 30, beating analyst expectations of 5 cents per share. Revenue was $1.59 billion, above the $1.57 billion forecast, though down from $1.66 billion a year earlier. Adjusted EBITDA reached $353 million, topping estimates of $305 million.
Digital platforms, including Fandango, generated $245 million in revenue, an increase of nearly 10% year over year. Versant said Fandango’s ticketing revenue recorded significant growth and reached its highest level since the pandemic.
Advertising revenue fell 5.3% to $373 million, which the company attributed primarily to the impact of the previous year’s Ryder Cup. Linear TV revenue declined 5.8% to $935 million amid pressure from cord-cutting and subscriber losses.
The company reaffirmed its 2026 revenue guidance of $6.2 billion to $6.45 billion and adjusted EBITDA outlook of $1.9 billion to $2.05 billion. It also said free cash flow is now expected to exceed its previous range of $1 billion to $1.2 billion.
Versant said its networks reached more than 120 million viewers per month in the quarter, while aggregate viewership grew by double digits year over year. WNBA viewership on its USA Sports networks was 25% higher than the prior year’s cable average. The company also launched a direct-to-consumer product for MS NOW and an on-demand product for Fandango; CNBC is expected to launch a direct-to-consumer service next year.
CEO Mark Lazarus said four major distribution renewals had been completed this year following Versant’s separation from Comcast’s NBCUniversal. He said 75% of the company’s network subscribers are under contract through 2028 or later.
Versant also announced a $100 million accelerated stock repurchase program beginning Wednesday, with completion expected during the fourth quarter.
Sources: CNBC Markets.