Versant Media posted third-quarter financial results that surpassed analyst expectations, with the company citing robust performance across its diversified portfolio of media properties. The media company recorded adjusted earnings before interest, taxes, depreciation and amortization of $353 million, exceeding StreetAccount estimates of $305 million. However, net income declined to $47 million, or 34 cents per share, compared with $80 million, or 56 cents per share, in the year-ago period.
Digital platforms emerged as a significant growth driver for the company. Revenue from digital properties including Fandango reached $245 million, representing nearly a 10% year-over-year increase. The ticketing platform achieved its highest revenue level since the pandemic during the quarter. In contrast, advertising revenue declined to $373 million, down 5.3% from the prior year, primarily reflecting the absence of advertising from the previous year’s Ryder Cup.
Total quarterly revenue fell modestly to $1.59 billion from $1.66 billion in the year-ago period. The company’s portfolio, which includes CNBC, Golf Channel, and other cable and digital properties, reached more than 120 million monthly viewers with double-digit year-over-year viewership growth. Linear television revenue decreased 5.8% to $935 million amid ongoing pressure from cord-cutting and subscriber declines.
Versant reaffirmed its full-year revenue guidance of between $6.2 billion and $6.45 billion and adjusted EBITDA outlook of $1.9 billion to $2.05 billion. The company raised expectations for free cash flow, now anticipating it will exceed the prior range of $1 billion to $1.2 billion. Versant also announced a $100 million accelerated stock repurchase program, with completion expected during the fourth quarter.
The company has completed four major distribution renewals this year following its separation from Comcast’s NBCUniversal. Management noted that 75% of network subscribers are now under contract into 2028 and beyond. Versant continues developing direct-to-consumer offerings, with new products launched for MS NOW and Fandango and a CNBC direct-to-consumer product anticipated for next year.
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