Versant Media Group, Inc. Class A

Total revenue was $1.64 billion, down 4% year over year; excluding SportsEngine, revenue declined 3%. Adjusted EBITDA was $624 million, up 3%, and margins remained above 30%. Linear distribution revenue was $954 million, down 6%; advertising revenue was $423 million, down 0.6%; platforms revenue was $225 million, up 9% excluding SportsEngine; and content licensing and other revenue was $43 million, flat. Free cash flow was $350 million, and Versant ended the quarter with approximately $1.5 billion of cash. Management raised full-year revenue guidance to $6.2 billion-$6.45 billion from $6.15 billion-$6.4 billion and adjusted EBITDA guidance to $1.9 billion-$2.05 billion from $1.85 billion-$2 billion, while keeping free cash flow guidance at $1 billion-$1.2 billion. They also said second-half adjusted EBITDA is unlikely to show growth versus the prior year because of higher sports rights costs, and second-half free cash flow will be lower than the first half.

Mark Lazarus emphasized that the quarter validated Versant’s strategy of winning with premium live content, extending iconic brands, and accelerating growth across platforms. He pointed to strong audience engagement at CNBC, MS NOW, Golf Channel, USA, Fandango, and GolfNow, plus recent multiyear distribution renewals, as evidence that the portfolio is valued by both viewers and partners. He sounded constructive and expansionary, highlighting investments in D2C products, AVOD, golf technology through Full Swing, and a broader capital-return commitment through dividends and an additional ASR.

Anand Kini said the quarter delivered EBITDA growth, strong margins, and meaningful free cash flow despite secular pay TV pressure. He cited $624 million of adjusted EBITDA, $350 million of free cash flow, about $1.5 billion of cash, and $305 million returned to shareholders year to date, including $200 million of repurchases and $105 million of dividends. He also noted full-year guidance was raised because of first-half strength and portfolio momentum, but warned that sports-rights costs will step up in the second half, SG&A will increase modestly for growth initiatives, and CapEx will be higher due to New York office construction.

Analysts focused on affiliate renewals, D2C demand for MS NOW and CNBC, the impact of SportsEngine divestiture versus Full Swing, the new ASR and M&A appetite, Fandango’s AVOD strategy, linear distribution trends, ad growth, and the Bundesliga deal. Management said affiliate talks were effectively business as usual and centered on brand value and audience delivery, while D2C demand is supported by large off-pay-TV audiences on YouTube, TikTok, websites, apps, live events, and existing CNBC subscription products. On capital allocation, they said they will keep investing, returning cash, and maintaining a healthy balance sheet, with leverage around 1.25x as a North Star; on CNBC ad sales, they said the current NBC arrangement is working well and any future change is months to a year away.