Versant Posts Mixed Q2 Results As Advertising Trends Show Improvement
Versant delivered mixed results in its second quarter after spinning off from Comcast, with revenue and earnings per share both declining from the year-ago period.
Total revenue slipped 4% to $1.64 billion, while EPS dipped to $1.49 from $2.09.
The company, whose assets include cable TV networks like MS NOW and CNBC and digital platforms like Fandango, started trading last January after a spin-off from Comcast was finalized.
Over the long term (the company hasn’t specified a date), Versant hopes to achieve a 50-50 revenue split from linear TV and digital. Currently, the share is closer to 75-25.
The company’s Platforms division posted $212 million in revenue, which was up a fraction from a year ago. Not counting SportsEngine, a property Versant sold off during the quarter, revenue in the platforms unit grew 9%.
Advertising revenue dipped less than 1% to $423 million, improving on a 13% decline in the prior-year quarter. The company cited a strong ratings showing in the period as well as additional revenue from the acquisition of Free TV Networks.
Linear distribution revenue fell 6% to $954 million, with the company saying subscriber declines were offset by contractual rate increases.
Fandango, which originated as a movie ticketing service, has evolved into a more comprehensive media brand. Versant recently launched a Fandango AVOD streaming service, which the company is using for select live sports in addition to general entertainment fare.
USA Network, one of Versant’s linear brands, has been established as a key outlet for live sports. It has rights to properties like the WNBA, PGA, USGA and Ryder Cup golf and NASCAR. Versant also recently landed rights to Bundesliga, a major European soccer league.
