Versant revenue, profit decline as company raises 2026 outlook

Versant Media Group reported lower second-quarter revenue and profit Thursday as continued pay TV subscriber losses outweighed growth at Fandango, GolfNow and the company’s other digital businesses.

Revenue fell 3.8% to $1.64 billion from $1.71 billion during the same quarter in 2025. Net income attributable to Versant declined 30% to $211 million, or $1.49 per diluted share, from $302 million, or $2.09 per share.

Adjusted earnings before interest, taxes, depreciation and amortization dropped 8.9% to $624 million. Versant said the decline reflected lower revenue and the costs of operating as an independent public company following its Jan. 2, 2026, separation from Comcast. Interest expenses and taxes connected to the sale of SportsEngine also weighed on profit.

The company raised its full-year outlook and now expects revenue of $6.2 billion to $6.45 billion and adjusted EBITDA of $1.9 billion to $2.05 billion. Versant maintained its free cash flow forecast of $1 billion to $1.2 billion.

Linear distribution revenue, which includes fees paid by cable, satellite and streaming television distributors, fell 6.3% to $954 million. Versant attributed the decrease to subscriber losses, partially offset by contractual rate increases.

Advertising revenue was nearly flat, slipping 0.6% to $423 million. The company said improved ratings across its television networks and revenue from a recent acquisition helped slow the decline. Advertising had fallen 5.2% during the first quarter.

Platforms revenue increased less than 1% to $225 million. Excluding SportsEngine, which Versant sold during the quarter, the segment grew 9.3% to $212 million. The increase was driven by movie ticket and video-on-demand transactions at Fandango and higher bookings, payments and subscription revenue at GolfNow.

Versant generated $382 million in operating cash flow and $350 million in free cash flow during the quarter. The company completed a $100 million accelerated stock repurchase covering nearly 2.4 million shares and plans to begin another $100 million repurchase Friday. About $800 million remained under its existing authorization as of June 30.

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The board also declared a quarterly dividend of 37.5 cents per share, payable Oct. 22 to shareholders of record Oct. 1.

“Versant’s brands once again demonstrated strength, durability and scale, reaching more than 120 million viewers each month during the quarter,” CEO Mark Lazarus said in a statement.

The company is seeking to reduce its reliance on traditional pay TV by investing in streaming, subscriptions and digital platforms. Since becoming independent, Versant has pursued direct-to-consumer products for CNBC and MS NOW, launched an ad-supported Fandango streaming service and expanded its golf business through the acquisition of Full Swing.

CNBC recorded its highest-rated day in more than five years during coverage of the SpaceX initial public offering, while MS NOW viewership increased 14% from the second quarter of 2025. Versant said MS NOW generated nearly 3 billion combined views on YouTube and TikTok during the first six months of the year.

Golf Channel’s PGA Tour coverage delivered its largest second-quarter audience since 2020. USA Network remained among the five highest-rated cable entertainment networks in key demographics, according to Versant, with WNBA coverage delivering the quarter’s three most-watched games across cable and streaming.

Versant also announced a five-year Bundesliga rights agreement covering more than 300 soccer matches annually. At least 30 matches will air on USA Network, with the remaining games streaming free through Fandango.