Versant Media Q3: profit falls over 40% as TV revenue drops; revenue beats estimates
Versant Media, the Comcast spinoff that owns MS NOW, CNBC and USA, reported third-quarter net income of $47 million, down from $80 million, on revenue of about $1.59 billion. Advertising and distribution revenue fell while non-TV businesses such as Fandango grew.
1 / 2
The story, neutrally told
Left · 2Versant Media, the owner of MS NOW, CNBC and USA, reported third-quarter net income of $47 million, down more than 40% from $80 million a year earlier. VarietyLC “net income in the period fell more than 40% to $47 million, a decrease of $33 million from $80 million in the year-earlier period” Read at Variety ↗ The Hollywood ReporterLC “net income was $47 million, earnings per share was 34 cents” Read at The Hollywood Reporter ↗ Left · 1Variety reported that Versant attributed the decline to lower revenue and to public company costs and interest expense following its separation from Comcast. VarietyLC “Versant cited lower revenue and public company costs and interest expense following its separation from Comcast.” Read at Variety ↗ Left · 2Revenue fell 4.2% to nearly $1.6 billion from $1.67 billion a year earlier, but The Hollywood Reporter said the $1.59 billion figure beat Wall Street's consensus estimate. VarietyLC “Revenue fell 4.2% to nearly $1.6 billion, compared with $1.67 billion in the year-earlier quarter” Read at Variety ↗ The Hollywood ReporterLC “beat Wall Street’s consensus third-quarter revenue estimate with $1.59 billion reported” Read at The Hollywood Reporter ↗
Left · 2Advertising revenue fell 5.3% and distribution fees fell 5.8%, while revenue from non-TV operations rose 9.6%, driven by Fandango's movie ticket sales and its new cinema operating platform. VarietyLC “advertising revenue dipped 5.3% during the period while fees from distribution were off 5.8%. Revenue from its non-TV operations, however, rose 9.6%.” Read at Variety ↗ The Hollywood ReporterLC “Fandango had a strong quarter in ticket sales and launched its AVOD platform in the quarter.” Read at The Hollywood Reporter ↗ Left · 1The Hollywood Reporter added that adjusted EBITDA dropped 7.4% to $353 million and that Versant is working toward a 50/50 mix of advertising and platforms revenue. The Hollywood ReporterLC “The company’s adjusted EBITDA dropped to $353 million (-7.4 percent)”“Versant is pushing forward toward its goal of a 50/50 mix of advertising and platforms revenue.” Read at The Hollywood Reporter ↗ Left · 2During the quarter Versant launched MS NOW Membership, integrated its Full Swing acquisition into its golf business, and advanced Fandango into what CEO Mark Lazarus called a comprehensive entertainment platform; a CNBC direct-to-consumer product is due next year. VarietyLC “integrated Full Swing into our golf ecosystem, and launched MSNOW Membership to connect directly with our audiences” Read at Variety ↗ The Hollywood ReporterLC “MS NOW’s direct-to-consumer product also debuted; CNBC’s will following next year.” Read at The Hollywood Reporter ↗
Left · 1Lazarus also said Versant completed all planned pay-television distribution renewals for the year, and the company said its networks reach more than 120 million viewers monthly. The Hollywood ReporterLC “the completion of all planned Pay Television distribution renewals for the year”“reaching more than 120 million viewers monthly.” Read at The Hollywood Reporter ↗ Left · 2Versant reaffirmed its full-year outlook and said it expects free cash flow to exceed its earlier forecast of $1.0 billion to $1.2 billion. VarietyLC “Versant reaffirmed its projections for between $6.2 billion and $6.45 billion for the end of the year” Read at Variety ↗ The Hollywood ReporterLC “we expect Free Cash Flow to exceed our prior $1.0 to $1.2 billion forecast” Read at The Hollywood Reporter ↗ Left · 1CFO and chief operating officer Anand Kini said $457 million has been returned to shareholders so far, and the company announced an additional planned $100 million accelerated share repurchase and declared its quarterly dividend. The Hollywood ReporterLC “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” Read at The Hollywood Reporter ↗
Every sentence links to the reporting it rests on. The pill in front of each says where its sources sit: Left, Centre or Right when one side supplies at least half of them, Mixed when they are evenly split. The number is how many outlets it cites.
Left2 outlets
- Framing
- Both left-leaning trade outlets cover it as a business earnings report. Variety leads with the profit drop and the company's reliance on traditional TV; The Hollywood Reporter leads with the revenue beat and the expansion of Fandango and MS NOW.
- Emphasis
- Variety stresses falling net income, advertising and distribution declines; The Hollywood Reporter stresses the beat versus estimates, growth in platforms, new launches, and executives' quotes on cash returns.
- Leaves out or plays down
- Variety omits the beat against analyst estimates, EBITDA and the shareholder returns; The Hollywood Reporter omits the year-over-year revenue decline and the stated reasons for lower profit.
- Charged language
- “dependence on traditional media properties”“Best Estimates”
- For example
-
“Versant Media said third quarter profit fell as its dependence on traditional media properties forced it to navigate with drops in cash from both advertising and distribution” — Variety
“beat Wall Street’s consensus third-quarter revenue estimate with $1.59 billion reported” — The Hollywood Reporter
Centre0 outlets
No centre outlet in our sources has covered this story yet.
Right0 outlets
No right outlet in our sources has covered this story yet.
What every side reports
- Net income was $47 million.
- Advertising revenue fell 5.3% and non-TV/platforms revenue rose 9.6%.
- Versant reaffirmed its full-year outlook and expects free cash flow above $1.0–1.2 billion.
- Mark Lazarus is CEO and cited Fandango, Full Swing and MS NOW Membership.
Where accounts differ
-
How to characterise the quarter
- Left
- Variety presents it as a profit drop tied to reliance on traditional TV; The Hollywood Reporter presents it as an earnings beat on revenue.
Versant Media organisation
Versant presents the quarter as one of momentum: CEO Mark Lazarus points to audience growth, completed distribution renewals and new consumer businesses, while CFO Anand Kini cites financial discipline, strong cash flow and shareholder returns.
“Versant’s momentum continues, with audience growth and the completion of all planned Pay Television distribution renewals for the year” — The Hollywood Reporter
“Our third quarter performance demonstrates the financial discipline and flexibility that underpins Versant’s strategy” — The Hollywood Reporter
Left2 articles
-
Versant Sees Q3 Profit Drop Despite Upticks in Non-TV Operations
Critical Frames the results as a profit decline driven by dependence on traditional TV, with non-TV growth as a partial offset.
-
Versant Earnings Best Estimates in Quarter of Fandango, MS NOW Expansion
Mixed Frames the quarter as an earnings beat with expansion in Fandango and MS NOW, relaying executive quotes at length.
Centre0 articles
No coverage yet.
Right0 articles
No coverage yet.
- 3 Nov 12:00 First VarietyLC Versant Sees Q3 Profit Drop Despite Upticks in Non-TV Operations
- 3 Nov 12:01 +1m The Hollywood ReporterLC Versant Earnings Best Estimates in Quarter of Fandango, MS NOW Expansion
Times are when each article was published, or when we first saw it if the outlet gave no time.
Ask about this story
Loading…