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)