- Versant reported net income of $211 million, down 30% from $302 million a year earlier.
- Revenue fell 3.8% to $1.64 billion, topping analyst expectations.
- Versant posted earnings per share of $1.49, compared with $2.09 a year earlier and above the $1.42 per share analyst expectations, according to Yahoo Finance.
Versant beat Wall Street expectations in the second quarter and raised its full-year outlook Thursday, even as revenue and net income declined from a year earlier amid continued pressure on the traditional pay TV business.
Ad revenue declined just 0.6% — an improvement from the 13% drop in the prior year quarter — while platforms revenue excluding SportsEngine grew 9.3%, making it Versant’s fastest-growing business. Linear distribution revenue declined 6.3% as subscriber losses continued to weigh on the legacy pay TV business.
Versant said lower revenue, public company costs following its separation from Comcast, higher interest expense and increased tax expense related largely to the SportsEngine divestiture weighed on quarterly net income.
Versant raised its full-year 2026 outlook, now expecting revenue of $6.2 billion to $6.45 billion and adjusted earnings before interest, taxes, depreciation and amortization of $1.9 billion to $2.05 billion. The company maintained its free cash flow outlook of $1 billion to $1.2 billion, reflecting strong first-half execution and confidence in the second half of the year
“Versant’s brands once again demonstrated strength, durability and scale, reaching more than 120 million viewers each month during the quarter while reinforcing our leadership across news, sports and entertainment,” Versant CEO Mark Lazarus said in a statement.
Beyond the financial results, Versant highlighted continued audience momentum across several of its flagship brands. MS NOW posted its seventh consecutive month of year-over-year audience growth and ranked as the No. 1 news organization on YouTube in June, while CNBC delivered its highest-rated quarter in more than five years and remained among the top 10 cable networks during market hours for a fourth consecutive month. Golf Channel recorded its most-watched second quarter since 2020, and USA Network remained a top-five cable entertainment network among key demographics as live sports continued to drive viewership.
The moves are part of Versant’s broader effort to generate more revenue outside the shrinking pay TV bundle through subscription, platform and digital businesses. Following the quarter, Fandango launched its new ad-supported streaming service and Versant completed its acquisition of Full Swing, while continuing development of subscription products for CNBC and MS NOW. Executives said those businesses are central to Versant’s long-term goal of generating a more balanced revenue mix beyond linear TV.
Chief Financial Officer and Chief Operating Officer Anand Kini said the results reflected “the strength of our operating model, continued growth across Platforms and meaningful cash flow generation.” He added that the company remains focused on investing in strategic priorities while maintaining a disciplined approach to capital allocation.
Versant also continued returning capital to shareholders, announcing an additional $100 million accelerated share repurchase program after returning $305 million through dividends and share buybacks this year. The company also declared a quarterly cash dividend of 37.5 cents per share.