Versant Media Group Reports First Quarterly Results as Independent Company
"We are executing our strategy by extending the reach of our brands, deepening our connection with audiences, and scaling our digital platforms."
— CEO Mark Lazarus
Versant Media Group, the publicly traded media company formed from the spin-off of Comcast's cable television networks and digital assets, has reported its first quarterly financial results as an independent entity. The company’s Q1 2024 revenue fell slightly year-over-year, though growth was seen in content licensing and digital platform segments. The company also provided updates on its capital allocation strategy and long-term business outlook.
Corporate Milestone: Spin-Off and Market Debut
Comcast finalized the separation of most of its NBCUniversal cable TV networks and digital properties into Versant Media Group, effective January 2, 2026. As part of the transaction, Comcast shareholders received one share of Versant Class A or Class B common stock for every 25 shares of Comcast stock held, based on the December 16, 2025 record date. The distribution occurred after the close of trading on January 2, 2026.
Versant commenced regular-way trading on the Nasdaq under the ticker VSNT on the same day. Its when-issued stock began trading on December 15, 2025, at $55 per share, closing at $46.65 on the preceding Friday. At the time of the spin-off, the company had 145.76 million shares outstanding and a reported market capitalization of $6.8 billion. As of the publication of its first earnings report, the company's stock had decreased by approximately 25% since its debut, resulting in a market capitalization of about $4.8 billion.
Leadership and Structure
Mark Lazarus, formerly chairman of the NBCUniversal Media Group, serves as CEO of Versant Media Group. Anand Kini, previously NBCUniversal's CFO, holds the dual role of CFO and COO.
Certain assets remained under Comcast's NBCUniversal entertainment arm, including Bravo, the NBC broadcast network, Peacock, Telemundo, Universal, and Sky.
Versant Media Group operates the following assets:
- Cable TV Networks: MS Now (formerly MSNBC), CNBC, Golf Channel, USA Network, E!, Syfy, and Oxygen.
- Digital Properties: Fandango, Rotten Tomatoes, GolfNow, and Sports Engine.
Goldman Sachs, Morgan Stanley, and PJT Partners provided financial advisory services to Comcast during the spin-off. Davis Polk & Wardwell provided legal counsel.
Financial Results for Q1 2024
Overall Performance
- Revenue: $1.69 billion, down approximately 1% year-over-year. Wall Street analysts had projected $1.62 billion.
- Net Income: $286 million ($1.99 per share), a decline of 22% compared to the prior year. The company attributed the decline to lower revenue, higher public company costs, and increased interest expense following the spin-off, partially offset by lower taxes.
- Adjusted EBITDA: $704 million, a decline of 7% year-over-year. On a standalone adjusted EBITDA basis (comparing pre-spin portfolio companies), EBITDA was up approximately 5%, which the company attributed to lower entertainment programming costs and reduced selling, general, and administrative (SG&A) expenses.
Segment Results
Linear Distribution (Pay TV Networks)
- Revenue: $1.01 billion, a decrease of approximately 7% year-over-year.
- The decline was driven by subscriber losses, partially offset by rate increases.
Advertising
- Revenue: $368 million, a decrease of 5% year-over-year. This represented an improvement from a 12% decline in the same period the prior year.
Content Licensing
- Revenue: $121 million, an increase of 113.5% year-over-year.
- Growth was largely attributed to licensing "Keeping Up With the Kardashians" and related content to Disney's Hulu.
Platforms Business (Fandango, GolfNow, Direct-to-Consumer)
- Revenue: $192 million, an increase of 9.5% year-over-year.
Capital Allocation and Shareholder Returns
The company declared a quarterly cash dividend of $0.375 per share for the second consecutive quarter, payable July 22 to shareholders of record as of July 1.
Versant announced a $100 million accelerated share repurchase agreement beginning May 15, expected to complete during the second quarter. During Q1, Versant repurchased approximately 2.7 million shares of Class A common stock. As of March 31, the company had approximately $900 million remaining under its share repurchase authorization.
Business Outlook and Strategic Positioning
Versant stated its goal to eventually achieve a 50/50 revenue split between pay TV (currently over 80%) and digital, platform, subscription, ad-supported, and transactional businesses.
CEO Mark Lazarus noted that 62% of Versant's audience originates from live programming in sports and news, positioning the company to weather industry shifts. Analysts highlighted Versant’s focus on sports and news as a differentiating factor amid the ongoing transition from traditional TV bundles to streaming services.
Industry Context
The media industry has seen limited public offerings from traditional media companies in recent years, a trend attributed to challenges from the streaming transition. Concurrently, the sector has experienced significant consolidation and M&A activity, including:
- The Paramount Skydance merger, followed by acquisitions by CEO David Ellison.
- Warner Bros. Discovery, formed through a 2022 merger, initiated a sale process that led to a proposed deal with Netflix.
- Paramount subsequently issued a hostile offer to Warner Bros. Discovery shareholders, challenging the proposed Netflix transaction.
- Warner Bros. Discovery is proceeding with a plan to separate its movie studio, HBO, and streaming services from its cable networks, which are to be housed in a new entity named Discovery Global.