Versant Beats Revenue Estimate as Profit Falls 41%

Versant Media Group beat analysts’ third-quarter revenue estimate, reporting $1.594 billion in sales even as revenue and profit fell from a year earlier amid lower linear distribution and advertising revenue. Revenue for the three months ended Sept. 30 declined 4.2% from $1.66 billion a year earlier. The result exceeded the $1.57 billion analyst estimate cited in one report. Net income fell 41.1% to $47 million from $80 million, while adjusted EBITDA was $353 million. Linear distribution revenue, largely fees from cable and satellite distributors, dropped 5.8% to $935 million. Versant attributed the decline primarily to subscriber losses, partly offset by contractual rate increases. Advertising revenue fell 5.3% to $373 million; the company said the comparison was affected by the prior year’s Ryder Cup, which had supported advertising sales. Platforms revenue rose 9.6% to $245 million. Excluding the effects of the SportsEngine divestiture and Full Swing acquisition, Versant reported growth of 17.4%. The company said Fandango’s ticketing business and sales from its cinema operating platform contributed to the increase. The results show the contrast between growth in Versant’s...