Versant profit falls more than 40% as ad, distribution revenue decline

Versant Media reported a sharp decline in third-quarter earnings as falling advertising revenue and distribution fees continued to weigh on its cable television business, offsetting growth in the company’s digital and direct-to-consumer operations.

The parent company of MS NOW, CNBC and USA Network reported net income of $47 million, down 41.3% from $80 million during the same period a year earlier.

Revenue declined 4.2% to nearly $1.6 billion, compared with $1.67 billion in the year-earlier quarter.

Versant attributed the earnings decline to lower revenue, additional costs associated with operating as a publicly traded company and interest expenses following its separation from Comcast.

The results underscore the financial challenges facing Versant as it works to reduce its reliance on traditional television networks while investing in businesses that can generate revenue outside the cable distribution system.

Advertising revenue fell 5.3% during the quarter, while distribution revenue declined 5.8%, reflecting continued pressure on the company’s traditional television operations.

Revenue from businesses outside its television networks increased 9.6%, providing a source of growth as the company expands its digital portfolio.

Versant said the increase was partly driven by Fandango, which benefited from higher movie ticket sales and revenue generated by its new cinema operating platform.

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CEO Mark Lazarus pointed to several initiatives launched or expanded during the quarter as examples of the company’s efforts to diversify its operations.

“In the third quarter, we advanced Fandango’s evolution into a comprehensive entertainment platform, integrated Full Swing into our golf ecosystem, and launched MS NOW Membership to connect directly with our audiences,” Lazarus said in a statement.

MS NOW launches membership offering with live TV, exclusive programming

The Full Swing integration expands Versant’s golf-related businesses, while MS NOW Membership represents an effort to establish direct relationships with viewers through digital subscriptions and additional programming experiences.

Those investments are part of a broader strategy to develop new revenue streams as advertising and distribution income from cable networks declines.

Versant has also been expanding its free, ad-supported streaming television operations, using programming from its established television brands to reach viewers on streaming platforms.

The company recently announced four additional FAST channels featuring programming from CNBC, Oxygen and E!, bringing its portfolio to 13 channels.

The expansion follows Versant’s acquisition of Free TV Networks in January 2026, which added three channels to its streaming lineup.

Despite the decline in quarterly earnings, Versant maintained its full-year revenue forecast of $6.2 billion to $6.45 billion.

The company also said it expects full-year free cash flow to exceed its previous forecast range of approximately $1 billion to $1.2 billion.