Versant posts smaller-than-expected revenue decline, unveils $1 billion buyback

By Harshita Mary Varghese

March ‌3 (Reuters) - Versant Media ​on ​Tuesday reported a smaller-than-expected decline in quarterly revenue and unveiled a $1 billion share buyback, in the first results for the ‌owner of CNBC and MS Now since it was spun out ⁠of Comcast.

Shares of the New York-based company were up nearly 4%.

The results indicate Versant's ‌legacy linear cable business is ‌holding up better than expected, as the industry contends with a steady drop in traditional TV viewership amid the shift toward on-demand streaming ​that offers more choice and flexibility than scheduled broadcasts.

Versant shares have plunged about 20% since their market debut in January, after Comcast spun ⁠off the business to curb its exposure to the assets.

"Linear TV-based companies such as Versant can ​expect declining revenues for the foreseeable future," Emarketer senior analyst Ross Benes said.

The newly formed company also houses brands including USA ​Network, Golf Channel, Oxygen, E!, SYFY, along ‌with digital assets such as Fandango and Rotten Tomatoes.

"About 60% of our audience comes from news and sports," Versant ⁠Chief Executive Mark Lazarus said on a post-earnings call.

Versant is planning to roll out several direct-to-consumer initiatives, including a CNBC subscription service tailored towards retail investors.

Fandango, ⁠Versant's movie-ticketing platform, is set to launch an ad-supported streaming service later this year that ​will include films and television series from Versant's content library and distribution deals for free.

"Versant did enough to steady nerves, but let's be clear: this was not a ‌turnaround quarter ... Now comes the hard part — proving there is a real future beyond milking decline," PP Foresight ‌analyst Paolo Pescatore said.

In the fourth quarter, Versant's revenue fell nearly 7% to $1.61 ⁠billion, compared with analysts' estimates ‌of $1.57 billion, according to ​three analysts polled by LSEG.

Versant's revenue for 2025 fell 5.3% to $6.69 billion.

(Reporting by Harshita Mary Varghese in Bengaluru; Editing by ‌Maju Samuel)

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