Prime Highlights
- Versant raised its 2026 revenue and adjusted EBITDA guidance.
- Digital platforms such as Fandango and GolfNow helped offset declines in traditional pay-TV revenue.
Key Facts
- Versant operates pay-TV networks including CNBC, MS NOW and The Golf Channel.
- The company aims to make digital and other non-linear businesses a larger part of its revenue mix.
Background
Versant Media Group has raised its full-year 2026 guidance after its digital businesses, including Fandango and GolfNow, helped offset pressure on its traditional pay-TV operations.
The company now expects 2026 revenue between $6.2 billion and $6.45 billion. It also raised its adjusted EBITDA outlook to $1.9 billion-$2.05 billion.
Versant reported second-quarter revenue of $1.64 billion, down 3.8% from a year earlier but above market expectations of $1.62 billion. Adjusted EBITDA fell 8.9% to $624 million. Net income dropped 30% to $211 million, or $1.49 per share, although earnings per share beat the expected $1.35.
Linear TV revenue declined 6.3% to $954 million as subscriber numbers fell. Advertising revenue also slipped 0.6% to $423 million. However, stronger ratings for its news and sports networks helped reduce the pace of the decline.
The platforms segment, which includes Fandango and GolfNow, grew 0.8% to $225 million. Excluding the impact of the SportsEngine divestiture, revenue in the segment increased 9.3%. Higher movie ticket and video-on-demand sales at Fandango and stronger bookings and subscriptions at GolfNow supported growth.
Versant is working to reduce its dependence on traditional television. More than 80% of its revenue currently comes from pay-TV operations, while the company aims to increase the contribution from digital, subscription, advertising and other businesses.
The company also completed its acquisition of golf simulation firm Full Swing and plans another $100 million share repurchase in the third quarter.
