Versant Profit Falls as Digital Businesses Expand

Versant Media’s third-quarter net income fell more than 40% from a year earlier, to $47 million, as the company faced lower advertising and distribution revenue, along with expenses and financing charges after it split from Comcast. Earnings were 34 cents per share, above analysts’ average estimate of 3 cents.

Revenue declined 4.2% to $1.59 billion, but exceeded analysts’ estimate of $1.55 billion. Advertising revenue fell 5.3%, and distribution fees were down 5.8%. Revenue from non-TV operations rose 9.6%, with Versant citing stronger Fandango revenue from ticket purchases and its new cinema operating platform.

The company, whose properties include MS NOW, CNBC, USA and Golf Channel, expanded several businesses during the quarter. Fandango launched an ad-supported streaming platform, MS NOW introduced a membership service, and Versant completed its acquisition of golf technology company Full Swing. CNBC’s direct-to-consumer service is planned for next year.

CEO Mark Lazarus said Versant was working to broaden its revenue mix and deepen relationships with consumers. He pointed to the Fandango expansion, Full Swing’s integration into the company’s golf business and the MS NOW membership launch.

Versant reaffirmed its full-year revenue outlook of $6.2 billion to $6.45 billion. Its chief financial officer and chief operating officer, Anand Kini, said the company expects free cash flow to exceed its previous forecast of $1 billion to $1.2 billion. Kini also cited an additional planned $100 million share repurchase and the company’s quarterly dividend.