Versant is getting there.
The cable TV-focused spinoff of NBCUniversal, which owns CNBC, MS Now, USA, Golf Channel and other assets, beat Wall Street’s consensus third-quarter revenue estimate with $1.59 billion. $373 million (-5.3 percent) came from advertising and $245 million (+9.6 percent) came from platforms ($935 million in linear distribution, $302 million in free cash flow.) Versant is moving toward its goal of a 50/50 mix of advertising and platform revenues. The company’s adjusted EBITDA fell to $353 million (-7.4 percent); Net income was $47 million, earnings per share were 34 cents.
Fandango had a good quarter in ticket sales and launched its AVOD platform in the quarter. MS Now’s direct-to-consumer product also launched; CNBC’s will will come next year. The company’s acquisition of Full Swing also closed this summer.
Versant says its networks are “reaching more than 120 million viewers monthly.” anna dove It became cable’s most-watched new scripted series this year, although its numbers aren’t quite there these days. Versant closed major distribution deals that were on the table.
CEO Mark Lazarus said, “With audience growth and the completion of all planned pay television distribution renewals for the year, Versant’s momentum continues, underscoring the value and enduring appeal of our brands.” “In the third quarter, we furthered the evolution of Fandango as a comprehensive entertainment platform, integrated Full Swing into our golf ecosystem, and launched MS Now memberships to connect directly with our audience. We are building deeper consumer relationships, expanding our reach and creating new opportunities for growth and monetization in our four key markets.”
“Our third quarter performance reflects the financial discipline and flexibility that underpins Versant’s strategy,” said Anand Kini, CFO and Chief Operating Officer. “We delivered strong platform revenue, continued operating efficiencies and significant cash flow. Looking ahead, we are reaffirming our full-year revenue and adjusted EBITDA outlook, and we expect free cash flow to exceed our previous $1.0 to $1.2 billion forecast. We believe our ability to invest in growth, maintain a healthy balance sheet and return capital to shareholders is a distinct advantage. $457 million already returned to shareholders through today This morning’s announcement of an additional $100 million ASR, along with the announcement of our quarterly dividend, underlines our commitment to delivering shareholder value.