Versant Earnings Best Estimates in Quarter of Fandango, MS NOW Expansion

Versant is getting there.

The cable TV-focused spinoff from NBCUniversal that owns CNBC, MS NOW, USA, Golf Channel and other assets beat Wall Street’s consensus third-quarter revenue estimate with $1.59 billion reported. $373 million (-5.3 percent) came from advertising and $245 million (+9.6 percent) from platforms ($935 million in linear distribution, $302 million in free cash flow.) Versant is pushing forward toward its goal of a 50/50 mix of advertising and platforms revenue. The company’s adjusted EBITDA dropped to $353 million (-7.4 percent); net income was $47 million, earnings per share was 34 cents.

Fandango had a strong quarter in ticket sales and launched its AVOD platform in the quarter. MS NOW’s direct-to-consumer product also debuted; CNBC’s will following 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 Pigeon became cable’s most-watched new scripted series this year, though are not a whole bunch of those these days. Versant completed the major distribution deals it had on the table.

“Versant’s momentum continues, with audience growth and the completion of all planned Pay Television distribution renewals for the year, underscoring the value and enduring appeal of our brands,” said CEO Mark Lazarus. “In the third quarter, we advanced Fandango’s evolution into a comprehensive entertainment platform, integrated Full Swing into our golf ecosystem, and launched MS NOW Membership to connect directly with our audiences. We’re building deeper consumer relationships, expanding our reach and creating new opportunities for growth and monetization across our four core markets.”

“Our third quarter performance demonstrates the financial discipline and flexibility that underpins Versant’s strategy,” said CFO and chief operating officer Anand Kini. “We delivered strong Platforms 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 prior $1.0 to $1.2 billion forecast. We believe that our ability to invest in growth, maintain a healthy balance sheet, and return capital to shareholders is a distinct advantage. With $457 million already returned to shareholders through today, this morning’s announcement of an additional planned $100 million ASR, along with the declaration of our quarterly dividend, underscores our commitment to delivering shareholder value.”