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Versant Earnings Best Estimates in Quarter of Fandango, MS NOW Expansion
Versant, the cable-focused company spun off from NBCUniversal, reported third-quarter revenue of $1.59 billion, ahead of Wall Street’s estimate. The results highlight growth in platform revenue and new direct-to-consumer services as Versant seeks to broaden its business beyond traditional television advertising and distribution.
Advertising revenue fell 5.3% to $373 million, while platform revenue rose 9.6% to $245 million; linear distribution contributed $935 million. Adjusted EBITDA declined 7.4% to $353 million, and net income was $47 million, or 34 cents per share. Fandango had a strong ticket-sales quarter and launched an ad-supported streaming service, while MS NOW introduced a direct-to-consumer product. Versant reaffirmed its full-year revenue and adjusted EBITDA outlook and said it expects free cash flow to exceed its previous $1.0 billion to $1.2 billion forecast.
In short
- Versant reported $1.59 billion in third-quarter revenue, beating estimates.
- Platform revenue grew 9.6% as advertising revenue declined.
- The company expects full-year free cash flow to exceed its prior forecast.
Steelman: both sides, in good faith
The strongest fair case each way — we don't pick a winner.
The case for
Versant’s results suggest it can adapt as audiences and advertisers move away from traditional television. Revenue beat estimates, platform revenue grew, Fandango expanded its streaming offer and MS NOW launched a direct-to-consumer product; stronger-than-forecast free cash flow could give the company room to invest in that transition.
The case against
The quarter also shows how difficult that transition may be: advertising revenue and adjusted EBITDA fell, while most revenue still came from linear distribution. New services may not grow quickly enough to offset pressure on established businesses, so the results offer limited evidence yet that Versant can sustain growth as viewing habits change.
Explained simply
Versant is a US media company formed when NBCUniversal separated some of its cable television businesses. Its channels include news and entertainment brands, and it also owns Fandango, a ticketing service. Much of its income has traditionally come from television advertising and fees paid by distributors such as cable providers.
As viewing shifts towards streaming, Versant is adding services people can use directly online. Fandango has launched an ad-supported streaming service, while MS NOW, its news brand, has introduced a subscription product. The company’s results matter because they show how its established television income and newer digital businesses are contributing as it tries to broaden its sources of revenue.
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