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    VSNT
    Earnings call· Dec 2025(Q4 FY25)

    Versant Media Group Q4 FY25 earnings call VSNT

    Mar 3, 2026 Source

    Executive summary

    Versant Media Q4 FY25 — Strategic Digital Expansion and Capital Returns

    Versant Media completed its transition to a stand-alone public company in Q4 FY25, reporting a strategic shift towards digital platforms and non-pay TV revenue, which increased to 19% of total revenue. Despite a 5% decline in total revenue and a 9% drop in adjusted EBITDA for FY25, the company announced its first dividend and a $1 billion share repurchase program, signaling confidence in its financial flexibility and long-term growth strategy focused on premium content and digital expansion.

    Highlights

    5

    • Reached an average of approximately 100 million people every month across its brands.

    • CNBC solidified its position as the #1 global business media brand, delivering over 6,000 hours of live on-air coverage in 2025.

    • MS NOW was the most watched network across all of cable on election night 2025, with double-digit growth in total viewers since November.

    • GolfNow delivered a record year with 40 million tee-times booked over 9,000 courses globally.

    • The Board declared the company's first dividend of $0.375 per share quarterly and approved a $1 billion share repurchase authorization.

    Concerns

    5

    • Total revenue was approximately $6.7 billion in 2025, down 5% year-over-year.

    • Stand-alone adjusted EBITDA was about $2.2 billion in 2025, down 9% year-over-year.

    • Advertising revenue was approximately $1.6 billion in 2025, down 9% year-over-year, reflecting ratings declines and post-election normalization.

    • Linear distribution revenue was $4.1 billion in 2025, down 5% year-over-year, driven by continued moderate cord cutting.

    • Fandango performance reflected a softer-than-expected theatrical slate in the second half of 2025.

    Guidance & targets

    8
    CategoryTargetConfidence
    Revenue
    $6.15 billion and $6.4 billion
    high materiality
    High
    Adjusted EBITDA
    $1.85 billion and $2 billion
    high materiality
    High
    Platforms revenue growth
    high single-digit revenue growth organically
    medium materiality
    High
    Free cash flow
    $1 billion and $1.2 billion
    high materiality
    High
    Non-pay TV revenue mix
    33%
    high materiality
    High
    Non-pay TV revenue mix
    closer to 50%
    high materiality
    Medium
    Cash tax rate
    approximately 26%
    medium materiality
    High
    Capital expenditures
    modestly above stand-alone 2025 levels
    medium materiality
    High

    Segment performance

    1
    SegmentRevenueYoYQoQMargin
    Platforms
    Platforms revenue, primarily GolfNow and Fandango, increased 4% to approximately $826 million. GolfNow delivered another strong year, while Fandango performance reflected a softer-than-expected theatrical slate, particularly in the second half.
    GolfNow: growth in bookings, payment volumes and subscriptionsFandango: softer-than-expected theatrical slate
    		$826 millionincreased 4%——

    Operational metrics

    24
    Non-pay TV revenue mix
    19%increased from 17% in 2024
    2025

    Achieved without the benefit of new initiatives launching this year; target is 33% over the next 3 to 5 years and closer to 50% over time.

    Net leverage
    1x
    trailing 12-month

    Provides substantial financial flexibility.

    Cash balance
    $850 million
    beginning of year

    Cash balance at the start of the year.

    Total liquidity
    $1.6 billion
    beginning of year

    Total liquidity at the start of the year, including available credit.

    Gross debt
    $3 billion
    beginning of year

    Gross debt at the start of the year.

    Share repurchase authorization
    $1 billion
    authorized

    Program reflects confidence in the business and strong balance sheet.

    Quarterly cash dividend
    $0.375
    quarterly

    First dividend declared by the company's Board.

    Cost of revenues
    declined by about $130 million
    2025

    Driven by programming cost savings, including from a new long-term NASCAR agreement.

    SG&A (excl. transaction/separation costs)
    slightly loweryear-over-year
    2025

    Reflects the resources required to operate as a stand-alone public company.

    Amortization of intangibles
    elevated
    2026

    Largely due to amortization of intangibles related to the 2011 Comcast acquisition of NBCUniversal; will be substantially complete by year-end 2026.

    Pay-TV subscribers under long-term agreements
    more than half
    current

    Not subject to renewal until 2028 and beyond, providing meaningful revenue visibility.

    MS NOW views
    nearly 8 billion
    2025

    Demonstrates depth and demand of a highly engaged audience.

    MS NOW podcast downloads
    more than 140 million
    2025

    Demonstrates depth and demand of a highly engaged audience.

    Golf Channel live coverage
    over 2,000 hours
    2025

    Reinforces leadership in golf.

    GolfNow tee-times booked
    40 million
    record year

    Demonstrates Versant's scale in the broader golf ecosystem.

    GolfNow market share
    less than 10%
    current

    Represents less than 10% of total rounds booked, indicating room for organic growth and international expansion.

    MS NOW prime time audience
    1.2 milliondoubled its audience in prime time in the last 10 years
    daily average

    Viewers watch roughly 8 to 9 hours a week, representing the second highest engagement across the entire media TV landscape.

    MS NOW total viewers growth
    double-digit growthsince the rebrand to MS NOW in the fourth quarter
    since November

    Momentum has accelerated since the rebrand.

    Total audience reach
    approximately 100 million
    monthly average

    Meaningful scale across all brands.

    Audience from news and sports
    approximately 60%
    current

    Most valued by audiences and advertisers.

    CNBC live on-air coverage
    more than 6,000 hours
    2025

    Delivered exclusive breaking news.

    USA Network scripted original premiere
    #1
    2025

    Reinforces ability to launch and develop premium franchises.

    Critics Choice Awards ratings
    strongest ratings since 2022
    current

    A reminder of the enduring appeal of live unscripted entertainment.

    Cord cutting pace
    roughly the same
    current

    Assumed to be roughly the same as seen for a while, in the high single digits.

    Industry KPIs

    5
    MetricValueDetails
    Free cash flow$1.5 billionUSD
    Operating income$2.2 billionUSD
    Operating marginabove 30%%
    Revenue net sales$6.7 billionUSD
    Effective tax rateapproximately 26%%

    Product announcements

    3
    ProductTypeDetails
    CNBC direct-to-consumer subscription servicelaunch
    MS NOW direct-to-consumer platformlaunch
    Fandango ad-supported streaming servicelaunch

    Deals & partnerships

    8
    KalshiIntegrating real-time prediction market data directly into CNBC's editorial coverage.multiyear

    Partnership to integrate real-time prediction market data into CNBC's editorial coverage.

    USGAExtension of partnership for golf rights.through 2032

    Extended USGA partnership through 2032.

    PGA of AmericaExtension of partnership for golf rights, including the Ryder Cup.through 2033

    Extended PGA of America partnership, including the Ryder Cup, through 2033.

    Pac-12Agreement to broadcast Pac-12 football and basketball.

    USA Sports added Pac-12 football and basketball.

    WNBALong-term agreement to expand leadership in women's sports.long-term

    USA Sports expanded its leadership in women's sports through a long-term agreement with the WNBA.

    League One VolleyballLong-term agreement to expand leadership in women's sports.long-term

    USA Sports expanded its leadership in women's sports through a long-term agreement with League One Volleyball.

    INDY Cinema GroupAcquisition to expand offering for cinema operators with a cloud-based operating system.

    Completed the acquisition of INDY Cinema Group, expanding the offering for cinema operators with a cloud-based operating system now deployed across theaters worldwide.

    Free TV NetworksAcquisition to gain national over-the-air distribution and expand presence in the free ad-supported market.

    Added Free TV Networks to the portfolio with national over-the-air distribution, expanding presence in the fast-growing free ad-supported market.

    Capital programs

    1
    New Manhattan headquarters build-outunderway
    Period spend: modestly above stand-alone 2025 levels

    The increase in 2026 CapEx primarily reflects the build-out of the new Manhattan headquarters and targeted investments in platforms and other growth businesses. Capital intensity is expected to normalize over the medium term following completion of these projects.

    Risks & headwinds

    5
    Secular pressure in pay TVongoing

    Linear distribution revenue was $4.1 billion, down 5% year-over-year

    Mitigation: More than half of pay-TV subscribers are under agreements not subject to renewal until 2028 and beyond, providing meaningful revenue visibility.

    Advertising normalization post-election cycle2025

    Advertising revenue was approximately $1.6 billion, down 9% year-over-year

    Mitigation: Expected to be supported by midterm political advertising and new product initiatives in 2026.

    Ratings declines impacting advertising revenue2025

    Advertising revenue was approximately $1.6 billion, down 9% year-over-year, reflecting ratings declines

    Mitigation: New product initiatives, cross-platform packaging, and leveraging data for targeted advertising are expected to improve trajectory.

    Softer-than-expected theatrical slateH2 2025

    Fandango performance reflected a softer-than-expected theatrical slate, particularly in the second half

    Mitigation: Platforms revenue is expected to return to high single-digit organic growth in 2026, supported by a stronger box office slate.

    Working capital variability2026

    Anticipate quarterly variability, particularly in the fourth quarter

    Mitigation: Principally caused by separation-related timing effects, including NBCUniversal's prefunding of certain receivables at separation, which increased the opening cash balance with a corresponding Q1 working capital impact.

    What to watch in Q1 FY26

    5

    Platforms revenue growth

    2026
    Currentincreased 4% to approximately $826 million (2025)
    Targethigh single-digit revenue growth organically

    Why it matters

    Platforms are critical for achieving revenue diversification goals and long-term growth, making their organic growth trajectory a key indicator.

    We expect platforms to return to high single-digit revenue growth organically in 2026, supported by a stronger box office slate and continued growth at GolfNow.

    Q&A highlights

    8

    How confident is management in achieving the 1/3 non-pay TV revenue target, and what key product launches will drive this?

    Management expressed high confidence, citing organic growth in GolfNow and Fandango, new direct-to-consumer platforms for CNBC and MS NOW, and strategic tuck-in M&A like INDY Cinema Group. They expect high single-digit organic revenue growth for platforms in 2026.

    “We're really confident in our platforms business. As we mentioned earlier, though the results for 2025 were a little bit impacted by a slightly softer film slate for the industry. And Anand mentioned, we expect high single-digit revenue growth for 2026, which is consistent with the history that we have with these businesses.”

    asked by Michael Ng · answered by Mark Lazarus

    2 min read6 chapters

    Detailed Narrative

    01

    Strategic Transformation & Digital Growth

    Versant Media completed its transition to a stand-alone public company in 2025, focusing on a clear strategy to win in four large markets: business news, political news, golf/athletics, and sports/genre entertainment. The company aims to extend its iconic brands beyond pay TV, with non-pay TV revenue increasing from 17% in 2024 to 19% in 2025, targeting 33% in 3-5 years and eventually 50%. This transformation is driven by investments in digital platforms and strategic acquisitions.

    02

    CNBC's Digital Expansion & Innovation

    CNBC maintained its position as the #1 global business media brand in 2025, delivering over 6,000 hours of live coverage. A multiyear partnership with Kalshi integrated real-time prediction market data, introducing new revenue streams and engaging a younger investor audience. CNBC plans to launch a next-generation direct-to-consumer subscription service later this year, offering editorial insights, investment recommendations, AI-powered analysis, and decision-making tools to retail investors.

    03

    MS NOW's Audience Engagement & D2C Platform

    MS NOW was the most watched cable network on election night 2025, demonstrating its strength in political news. Since its rebrand in Q4, it has seen double-digit growth in total viewers. In 2025, MS NOW generated nearly 8 billion views across TikTok and YouTube and over 140 million podcast downloads. A new direct-to-consumer platform centered on community and exclusive content is slated for launch later this year to further extend its audience reach.

    04

    Golf & Sports Portfolio Strength

    The Golf Channel is the #1 golf media outlet, airing over 2,000 hours of live coverage in 2025 and extending key partnerships with USGA (through 2032) and PGA of America (through 2033). GolfNow, the tee-time platform, achieved a record year with 40 million tee-times booked globally. USA Sports expanded its offerings by adding Pac-12 football and basketball and strengthening its position in women's sports through agreements with the WNBA and League One Volleyball.

    05

    Entertainment & Fandango Initiatives

    USA Network delivered the #1 scripted cable original premiere of 2025 with 'The Rainmaker.' Fandango is set to launch a new ad-supported streaming service later this year, leveraging its distribution and content library for incremental monetization. The company also acquired INDY Cinema Group, expanding its cloud-based operating system for cinema operators, and Free TV Networks, enhancing its presence in the free ad-supported market.

    06

    Capital Allocation & Financial Flexibility

    Versant Media is committed to disciplined investing and returning capital to shareholders. The Board authorized a $1 billion share repurchase program and declared a $0.375 per share quarterly cash dividend, representing an expected annualized dividend of $1.50 per share. The company ended the year with approximately $850 million in cash and $1.6 billion in total liquidity, with net leverage at 1x trailing 12-month adjusted EBITDA, providing substantial financial flexibility.

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