Versant reported third-quarter revenue of $1.59 billion, topping Wall Street’s consensus estimate. The cable-focused company, spun off from NBCUniversal, owns CNBC, MS NOW, USA Network, Golf Channel and other assets.
Advertising revenue was $373 million, down 5.3% year over year, while platform revenue rose 9.6% to $245 million. Linear distribution generated $935 million. Versant is working toward a 50/50 split between advertising and platform revenue. Adjusted EBITDA fell 7.4% to $353 million, while net income was $47 million and earnings per share came to 34 cents. Free cash flow was $302 million.
Fandango recorded a strong quarter for ticket sales and launched its ad-supported video-on-demand platform. MS NOW also debuted its direct-to-consumer product, with a similar offering from CNBC planned for next year. Versant’s acquisition of golf technology company Full Swing closed this summer.
The company said its networks reach more than 120 million viewers each month. It also reported that Anna Pigeon was cable’s most-watched new scripted series this year and that it had completed the major distribution agreements it had been negotiating.
CEO Mark Lazarus said the company’s audience growth and completion of planned pay-television distribution renewals reflected the appeal of its brands. He highlighted the development of Fandango, Full Swing’s integration into Versant’s golf business and the launch of MS NOW Membership.
CFO and chief operating officer Anand Kini said Versant was reaffirming its full-year revenue and adjusted EBITDA outlook and expected free cash flow to exceed its previous forecast of $1.0 billion to $1.2 billion. The company said it had returned $457 million to shareholders and announced a planned additional $100 million accelerated share repurchase, alongside its quarterly dividend.
Sources: The Hollywood Reporter.