Versant Media has reported a decline in its first fiscal quarter profits, attributed to challenges in its TV operations and increased corporate expenses following its recent separation from NBCUniversal. Despite these setbacks, some of its direct-to-consumer ventures performed well, supporting the company’s aim to diversify its revenue streams beyond traditional media.
The New York-based company, which owns MS NOW, CNBC, and other cable channels, announced that its net income decreased by $81 million, reaching $286 million, or $1.99 per share. This compares to $367 million, or $2.55 per share, in the same period the previous year. The decline was linked to reduced revenue, increased public company costs, and interest expenses following its split from NBCU parent company Comcast earlier this year.
Overall revenue saw a slight dip of 1.1%, amounting to nearly $1.69 billion, as Versant faced subscriber losses across its networks. Advertising revenue dropped to $368 million, marking a 5% decline from the prior year, which had already experienced a 12% fall in ad sales. Distribution fees also decreased by 7.3%, totaling approximately $1 billion.
Conversely, the company’s direct-to-consumer operations showed resilience, with revenue increasing by 9.5% to $192 million. This growth was largely driven by the success of e-commerce platforms GolfNow and Fandango.
“We are executing our strategy by extending the reach of our brands, deepening our connection with audiences, and scaling our digital platforms,” stated Mark Lazarus, CEO of Versant. He emphasized that the growth in direct-to-consumer revenue “reinforces our confidence in evolving the business over time and delivering long-term shareholder value.”
Versant is also planning to strengthen its non-traditional business segments. A subscription app based on MS NOW is in development, aiming to foster a sense of community among the outlet’s followers. Additionally, Versant has acquired StockStory, an AI-driven financial insights platform, which is anticipated to enhance CNBC’s direct-to-consumer offerings.
