- Versant reported revenue of $1.59 billion, exceeding the $1.57 billion expected by analysts, according to Yahoo Finance. Net income fell 41.1% to $47 million.
- Linear distribution revenue declined 5.8% to $935 million, while advertising revenue fell 5.3% to $373 million despite stronger TV ratings.
- Platforms revenue grew 9.6% to $245 million, driven largely by Fandango, while Versant said free cash flow would exceed its previous full-year forecast.
Versant Media Group CEO Mark Lazarus said Tuesday that MS NOW isn’t experiencing the viewer fatigue cited by Fox CEO Lachlan Murdoch a day earlier, pointing to continued audience growth at the cable news network on Election Day.
“We’re not seeing any of that viewer fatigue,” Lazarus said during Versant’s third-quarter earnings call. “And in fact, I think some of the viewership is leaving other places and trying us and spending some more time with us because I think they’re seeing the value in what we’re providing.”
His comments came in response to an analyst who asked about Fox’s assessment of the cable news audience ahead of Election Day. Murdoch said Monday that Fox News viewers were watching less TV after an unusually busy news cycle, rather than switching to competing networks.
“Those viewers are not switching to another news channel, they are just fatigued and watching slightly less television overall,” Murdoch said during Fox’s earnings call.
While Fox News remains the most-watched cable news network, MS NOW’s total viewership increased 20% year over year during the third quarter, making it the second-most-watched network across cable, according to Versant. September marked its 11th consecutive month of audience growth.
Lazarus attributed MS NOW’s gains to its programming, talent and approach to news coverage. He said the network is focused on attracting more viewers through a variety of voices and a welcoming tone, while expressing confidence that its audience can continue growing beyond the elections.
Versant’s total revenue fell 4.2% to $1.59 billion from $1.66 billion a year earlier, although it exceeded the $1.57 billion expected by analysts, according to Yahoo Finance. Adjusted earnings before interest, taxes, depreciation and amortization declined 7.4% to $353 million compared with the prior year’s standalone results, while net income dropped 41.1% to $47 million.
The results highlight the challenge facing Versant in its first year as an independent publicly traded company following its January separation from Comcast: growing its newer businesses fast enough to offset continued declines in traditional pay television, even as audiences for its networks expand.
Linear distribution revenue declined 5.8% to $935 million, primarily due to subscriber losses that were partially offset by contractual rate increases. Advertising revenue fell 5.3% to $373 million, with Versant citing the timing of last year’s Ryder Cup as a factor. The company also pointed to stronger ratings and demand across its news and sports networks.
Versant’s television portfolio reached more than 120 million viewers monthly during the quarter, with aggregate viewership growing by double digits year over year.
The company completed four major distribution renewals this year, leaving 75% of its network subscribers under contract into 2028 or beyond. The agreements provide greater visibility into future carriage revenue as Versant navigates subscriber declines across the pay-TV industry.
Meanwhile, platforms revenue increased 9.6% to $245 million, driven largely by Fandango’s ticketing business and sales from its new cinema operating platform. Excluding the effects of the SportsEngine divestiture and Full Swing acquisition, platforms revenue grew 17.4%.
Versant launched MS NOW Membership in September, offering viewers access to the network’s live programming without a traditional cable subscription for $7.99 a month. On Monday, MS NOW expanded the service to connected-TV platforms including Roku, Apple TV and Amazon Fire TV, just ahead of the midterms.
Lazarus said the goal is to use Versant’s direct-to-consumer offerings to offset as much of its traditional subscriber losses as possible. But he cautioned that the transition would take time, describing the newer services as membership products offering more than simply streaming the company’s television networks.
Versant is also in talks with potential distribution partners about making its streaming services available through other platforms, a strategy that could help the company reach subscribers without relying solely on its own apps.
During the call, CFO and COO Anand Kini said Versant is open to different business models and is actively engaged in discussions about how to expand the reach of its services. He did not identify potential partners or announce any agreements.
CNBC is expected to launch its own direct-to-consumer offering in early 2027, while Fandango introduced a free, ad-supported streaming service in July. Linear distribution still accounted for nearly 59% of quarterly revenue, compared with about 15% from platforms.
Versant also announced plans for another $100 million accelerated share repurchase during the fourth quarter, following a $100 million repurchase completed in the third quarter. The company declared a quarterly dividend of 37.5 cents per share.
Looking ahead, Versant reaffirmed its full-year revenue outlook of $6.2 billion to $6.45 billion and adjusted earnings before interest, taxes, depreciation and amortization guidance of $1.9 billion to $2.05 billion. The company now expects free cash flow to exceed its previous $1 billion to $1.2 billion forecast, after generating $302 million in the third quarter.
Shares of Versant were up 2.5% to $33.14 in Tuesday morning trading following the company’s third-quarter earnings report, as of 10:04 a.m. ET.
