Versant Q1 Sees Profit Slip On Revenue Dip, Corporate Costs

Versant Media said profit in its first fiscal quarter fell due to erosion at its TV operations and higher corporate costs tied to its recent spin-off from NBCUniversal, even as some of its direct-to-consumer businesses showed strength and buoyed its efforts to diversify revenue beyond traditional media assets,

The New York owner of MS NOW, CNBC and other cable businesses said net income fell $81 million, to $286 million, or $1.99 per share, compared with $367 million, or $2.55 a share in the year-earlier period. The company cited lower revenue, higher public company costs and interest expense following its separation from NBCU parent Comcast earlier this year.

Revenue, however, slipped just 1.1%, to nearly $1.69 billion, as Versant grappled with lower ratings and subscriber losses at its networks. Versant’s ad revenue came to $368 million, down 5% from the year-earlier period, when it faced a 12% decline in ad sales. Distribution fees, meanwhile, fell 7.3%, to about $1 billion.

Revenue from the company’s various direct to consumer operations proved more robust, rising 9.5% to $192 million, largely due to performance across e-commerce businesses 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,” said Mark Lazarus, Versant’s CEO, in a statement, noting tht the revenue increase at the company’s direct to consumer operations “reinforces our confidence in evolving the business over time and delivering long-term shareholder value.”

Versant has plans in place to bolster its non-traditional businesses. A new subscription app based on MS NOW is in development and will seek to enhance a feeling of community among adherents of the news and opinion outlet. Versant recently acquired StockStory, an AI-driven financial insights platform that is expected to play a role in CNBC’s direct to consumer operations.

More to come…