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    VSNT
    Earnings call· Mar 2026(Q1 FY26)

    Versant Media Group Q1 FY26 earnings call VSNT

    May 14, 2026 Source

    Executive summary

    Versant Media Group Q1 FY26 — Strong Start with Platform Growth and Capital Returns

    Versant Media Group reported a strong start to the year, driven by robust profitability and significant free cash flow generation, despite continued pressure on linear distribution. The company is actively expanding its digital platforms and direct-to-consumer offerings, while also returning capital to shareholders through dividends and share repurchases. Management emphasized disciplined execution and strategic investments in growth opportunities.

    Highlights

    5

    • Adjusted EBITDA increased 5% year-over-year to $704 million.

    • Platforms revenue grew 9% year-over-year to $192 million.

    • Content licensing and other revenue significantly increased to $121 million from $57 million in the prior year.

    • Advertising revenue decline improved to 5% year-over-year, compared to a 12% decline in Q1 last year.

    • Free cash flow totaled $558 million in the quarter.

    Concerns

    2

    • Total revenue decreased 1% year-over-year to $1.69 billion.

    • Linear distribution revenue declined 7% year-over-year to $1.01 billion due to continued cord-cutting trends.

    Guidance & targets

    5
    CategoryTargetConfidence
    Full-year 2026 Revenue
    $6.15 billion to $6.4 billion
    high materiality
    High
    Full-year 2026 Adjusted EBITDA
    $1.85 billion to $2.0 billion
    high materiality
    High
    Full-year 2026 Free Cash Flow
    $1.0 billion to $1.2 billion
    high materiality
    High
    SG&A Costs
    modest go-forward increase
    medium materiality
    Medium
    Capital Expenditures
    increase modestly over the remainder of the year
    medium materiality
    Medium

    Segment performance

    4
    SegmentRevenueYoYQoQMargin
    Linear distribution
    Driven by continued cord-cutting trends, partially offset by contractual rate increases. Consistent with prior year trajectory.
    		$1.01 billion-7%——
    Advertising
    Significant improvement from last year's Q1 decline of 12%, reflecting strong ratings and robust advertiser demand in news businesses.
    		$368 million-5%——
    Platforms
    Driven by GolfNow and Fandango, with Fandango1 (formerly INDY Cinema) fully integrated and contributing to success. Building a scalable revenue stream beyond Pay TV.
    GolfNow: strong resultsFandango: robust performance in ticketing and home entertainment
    		$192 million9%——
    Content licensing and other
    Significant increase compared to $57 million in the prior year, favorably impacted by licensing of select titles, including 'Keeping Up With the Kardashians'. Value of licensing transactions generally recognized immediately.
    		$121 million———

    Operational metrics

    13
    Adjusted EBITDA margin
    well above 30%
    Q1 FY26

    Reflecting continued focus on operating efficiency.

    Programming and production costs
    $519 milliondown 5% year-over-year
    Q1 FY26

    As we continue to deliver premium content efficiently. These costs have some degree of seasonality with higher costs in the second half of the year driven by sports rights timing.

    SG&A costs
    $346 milliondecrease of 9%
    Q1 FY26

    Reflecting focus on operating with a lean organization and modernizing technology infrastructure.

    Cash balance
    $1.2 billion
    quarter end

    Liquidity remains strong, supported by healthy free cash flow generation and timing-related items.

    Quarterly cash dividend
    $0.375
    Q1 FY26

    Declared by the Board.

    Share buyback
    $100 million
    Q1 FY26

    Repurchased under the authorization approved last quarter.

    Accelerated share repurchase agreement
    $100 million
    Q2 FY26

    Announced this morning, expected to complete in the second quarter.

    MS NOW YouTube and TikTok views
    over 1.6 billion
    year-to-date

    Combined across YouTube and TikTok.

    MS NOW weekly viewers
    over 30 million
    weekly

    Average reach.

    MS NOW weekly engagement
    9 hours
    weekly

    Average watch time, second highest across all cable networks regardless of genre and nearly double the next closest competitor.

    Golf Channel Masters unique viewers
    13.5 million
    during the week

    Reinforcing its role as primary destination for live golf, news, interviews, and post-round analysis.

    USA Network Olympic reach
    3/4
    Milan Cortina Olympics

    Largest Olympic audience in USA network history, aired across USA Network and CNBC.

    GolfPass subscribers
    highest number ever
    Q1 FY26

    Boosted by partnership with Rory McIlroy.

    Industry KPIs

    9
    MetricValueDetails
    Total revenue$1.69 billionUSD
    Adjusted EBITDA$704 millionUSD
    CAPEX capital programrelatively light
    Total operating expenses$638 millionUSD
    Content title performance13.5 millionunique viewers
    Cash marketable securities$1.2 billionUSD
    Ai product feature adoptionenhanced ability to deliver real-time actionable investment intelligence
    M a integration cost synergiesnot material
    Free cash flow operating cash flow$558 millionUSD

    Product announcements

    3
    ProductTypeDetails
    Morning Calllaunch
    MS NOW direct-to-consumer offeringroadmap
    Fandango AVOD serviceroadmap

    Deals & partnerships

    4
    StockStoryAI-driven platform

    Acquired as part of the strategy to build on CNBC's position and expand audience relationships through deeper and broader coverage.

    INDY Cinema (now Fandango1)Cinema operator integration

    Acquired to expand platform capabilities and accelerate evolution.

    Free TV NetworksExpands platform capabilities

    Acquired to expand platform capabilities and accelerate evolution.

    SportsEngineSale of most of the business

    Decision to explore strategic alternatives for SportsEngine, with most of the business sold on May 1.

    Risks & headwinds

    4
    Continued pressure on Pay TVQ1 FY26, ongoing

    Total revenue decreased 1% YoY to $1.69 billion; Linear distribution revenue declined 7% YoY to $1.01 billion.

    Mitigation: Actively managing through secular changes by expanding digital platforms and direct-to-consumer initiatives.

    Seasonality in programming and production costsH2 FY26, Q4 FY26

    Higher costs in the second half of the year, particularly in the fourth quarter, driven by sports rights timing.

    Mitigation: These dynamics are reflected in our full year outlook and consistent with 2025.

    Variability in content licensing revenueOngoing

    Can vary significantly quarter-to-quarter and year-over-year.

    Mitigation: Acknowledged as inherent to the revenue stream, with value recognized immediately upon content delivery.

    Variability in free cash flow due to working capital timingRemainder of 2026

    Expected to normalize as the year progresses.

    Mitigation: These dynamics are reflected in our full year outlook.

    What to watch in Q2 FY26

    5

    MS NOW D2C and Fandango AVOD launch

    Later this year (Q2/Q3 FY26)
    CurrentOn track to launch later this year
    TargetSuccessful launch and initial user adoption

    Why it matters

    These are key initiatives for expanding beyond Pay TV and diversifying revenue streams, crucial for the company's strategic evolution.

    We're building on this momentum with other new platform initiatives as well, including the previously announced MS NOW direct-to-consumer offering and Fandango AVOD service, both on track to launch later this year.

    Q&A highlights

    6

    What drove the better-than-expected advertising performance, and is it sustainable? How are skinny bundles impacting network performance, especially news-inclusive plans?

    Advertising strength was driven by the resilient portfolio of live content (news, sports, entertainment) and a fruitful partnership with NBCU, with no significant halo effect from the Olympics. The company is well-positioned in skinny bundles, particularly in sports and news tiers, and focuses on maximizing total revenue across its diverse portfolio.

    “The marketplace has been strong. The portfolio of news and sports, along with a bunch of the live entertainment we had has been resilient. And the -- our partnership with NBCU representing us in the market has proven to be fruitful for both parties. And we believe that this is sustainable.”

    asked by Michael Ng · answered by Mark Lazarus

    2 min read6 chapters

    Detailed Narrative

    01

    Strategic Focus and Portfolio Strength

    Versant Media Group, in its first quarter as an independent company, highlighted its unique culture and disciplined execution, driving momentum across the business. The company maintains leadership positions in four key markets: business news and personal finance (CNBC), political news and opinion (MS NOW), golf and sports (Golf Channel), and genre entertainment. The strategy focuses on operating scale, market-leading brands anchored in live sports and news, winning with premium content, expanding audience reach, and accelerating the growth of its digital platforms.

    02

    News and Sports Performance

    CNBC delivered its highest-rated quarter in four years with double-digit year-over-year growth, reinforcing its role in business news. MS NOW achieved its most-watched quarter since 2024 with double-digit growth in total day and prime-time viewership, reaching over 30 million weekly viewers and 1.6 billion views across YouTube and TikTok combined year-to-date. Golf Channel drew its largest audience for the Players Championship in two decades and reached 13.5 million unique viewers during the Masters week. USA Network delivered its largest Olympic audience in history with the Milan Cortina Olympics, reaching approximately three-quarters of U.S. pay TV households.

    03

    Platform Expansion and Digital Initiatives

    The Platforms business delivered high single-digit growth in the quarter, driven by strong results at GolfNow and Fandango. As part of its strategy to expand beyond Pay TV, Versant acquired StockStory, an AI-driven platform to enhance CNBC's investment intelligence. The company is also on track to launch MS NOW's direct-to-consumer offering and a Fandango AVOD service later this year, aiming to build scalable revenue streams and manage secular changes in the industry.

    04

    Capital Allocation and Shareholder Returns

    Versant Media Group remains committed to returning capital to shareholders, declaring a quarterly cash dividend of $0.375 per share. In the first quarter, the company repurchased $100 million of Class A shares and announced a $100 million accelerated share repurchase agreement for the second quarter. Liquidity remains strong with a total cash balance of $1.2 billion at quarter-end, supported by healthy free cash flow generation.

    05

    Content Monetization and Library Value

    Content licensing and other revenue saw a significant increase to $121 million, favorably impacted by the licensing of select titles from its content library, including 'Keeping Up With the Kardashians.' Management emphasized the value of its robust content library and its ability to monetize it across the evolving distribution landscape, noting that content sales are generally profitable and contribute good margins.

    06

    Operational Efficiency and Cost Management

    The company demonstrated continued focus on operating efficiency, with adjusted EBITDA increasing 5% year-over-year to $704 million and margins remaining well above 30%. Programming and production costs decreased 5% year-over-year to $519 million, reflecting efficient content delivery. SG&A costs decreased 9% to $346 million, driven by a lean organization and modernizing technology infrastructure, though a modest increase is expected to support growth initiatives.

    AI-generated summary of the company’s earnings call. Not investment advice.