Key facts
- Versant's distribution revenue decreased by 6.3% due to declining cable subscribers.
- The company's non-cable 'platforms' business, including Fandango and GolfNow, grew by 9.3%.
- Versant anticipates generating up to $1.2 billion in free cash flow for the year.
- The company will continue quarterly dividends and has announced an additional $100 million in share buybacks.
- Versant raised its full-year revenue and profit forecasts.
Versant is navigating the decline of the traditional cable TV business by simultaneously managing its existing operations, investing in new ventures, and returning capital to shareholders. The company reported a 6.3% decrease in distribution revenue due to fewer cable subscribers, but advertising revenue remained relatively stable, supported by viewership on channels like CNBC and MS NOW.
To offset the decline in its core business, Versant is growing its non-cable platforms, which include Fandango and GolfNow, with a 9.3% increase in revenue (excluding the divested SportsEngine business). The company is also developing digital subscription services, such as an upcoming MS NOW service.
Versant anticipates generating up to $1.2 billion in free cash flow this year, enabling it to continue quarterly dividends and share buybacks. Following a $100 million buyback in the spring, the company announced an additional $100 million repurchase program. These financial maneuvers, coupled with an increase in full-year revenue and profit forecasts, contributed to a nearly 10% rise in Versant's stock price following the announcement.