Versant Media Group Reports Q2 2026 Results: Full Earnings Call Transcript

On Thursday, Versant Media Group (NASDAQ: VSNT ) discussed second-quarter financial results during its earnings call. The full transcript is provided below. This content is powered APIs. For comprehensive financial data and transcripts, visit Access the full call at Summary Versant Media Group reported a 4% decline in total revenue for Q2 2026, with adjusted EBITDA increasing by 3% to 624 million, reflecting strong audience engagement and disciplined expense management.

The company announced multi-year renewals with two large pay-TV partners and is expanding its direct-to-consumer offerings with initiatives like MSNow and a new CNBC platform. 05 billion for the full year. Operational highlights include MSNBC's continued audience growth, CNBC's significant ratings success, and new sports agreements with the Bundesliga and NASCAR. Management emphasized strategic investments in digital platforms like Fandango and GolfNow, and the acquisition of Full Swing to enhance their golf ecosystem, while maintaining a strong balance sheet and returning capital to shareholders.

Full Transcript OPERATOR Greetings. Welcome to Versant Media Group's second quarter 2026 operating and financial results conference call. At this time, all participants are in listen-only mode. A question-and-answer session will follow the formal presentation.

If anyone should require operator assistance during the conference, please press star zero from your telephone keypad. Please note that this conference is being recorded. I'll now turn the conference over to Wiley Collins, Executive Vice President of Treasury and Investor Relations. Thank you.

You may begin. Wiley Collins, Executive Vice President of Treasury and Investor Relations Thank you, and good morning, everyone. Welcome to Versant Media Group's second quarter 2026 operating and financial results conference call. Joining us today are Mark Lazarus, Chief Executive Officer, and Anand Kinney, Chief Financial Officer and Chief Operating Officer.

Also with us are Jordan Fassbender, General Counsel, and Natalie Candela, Vice President of Investor Relations. Before we begin, I'd like to remind you that certain statements made during this call may constitute forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. These statements reflect management's current expectations and are subject to risks and uncertainties that could cause actual results to differ materially from those expressed or implied. For a discussion of these risks and uncertainties, please refer to Versant Media Group's filings with the SEC and today's earnings release.

All forward-looking statements are made as of today, August 6, 2026, and we undertake no obligation to update them. In addition, we may refer to certain non-GAAP financial measures. Information and reconciliations to the most directly comparable GAAP measures are included in today's earnings release and in the materials posted in the Investor Relations section of our website during today's call. All comparisons to the prior year are against standalone adjusted figures, which represent our estimated 2025 results as if Versant Media Group were already a separate, independent company.

And with that, I'll turn the call over to Mark. Mark Lazarus, Chief Executive Officer Thank you, Wiley, and good morning, everybody. Our second quarter results reinforce the strength of our portfolio and the strategy that we're executing to win with premium live content, extend the reach of our iconic brands, and accelerate growth across our platforms across news, sports, and entertainment. Our brands continue to grow audiences and engagement while delivering value for viewers, advertisers, and our distribution partners.

Our TV portfolio now reaches more than 120 million viewers each month, with double-digit audience increases in aggregate across our networks. S. and one in Canada, further highlighting the value of our portfolio. That strength gives us confidence to invest where we see the greatest opportunities, growing our digital platforms, advancing our direct-to-consumer offerings, and deepening our audience relationships.

Together, these investments extend our audience reach and build upon the foundation of our iconic, highly cash-generative brands. Our performance this quarter demonstrated our strong execution of this strategy across the portfolio. Let's walk through a few of the highlights. CNBC reinforced its position as the leading global business news brand during market hours.

The network ranked among the top 10 cable networks for the fourth consecutive month and delivered its highest-rated quarter in more than five years. Coverage of the SpaceX IPO drove CNBC's highest-rated day during that same period. CNBC continues to generate the most affluent and educated weekday daytime audience in all of television, a distinction it has maintained for 27 consecutive quarters. The network also featured exclusive interviews with business leaders and policymakers, including Jeff Bezos, whose appearance generated more than 100 million video views across all platforms.

MSNBC also built on its momentum, delivering its seventh consecutive month of audience growth in TV and expanding its reach on digital platforms. In June, viewers watched an average of nine hours each week, the second-highest level of engagement across all of television, and MSNBC saw a 14% increase in viewership in the second quarter versus last year. That momentum extended well beyond television. Year-to-date, the network generated nearly 3 billion combined YouTube and TikTok views and, in June, ranked as the number one news organization on YouTube.

Podcast engagement was also healthy, with more than 11 million audio downloads during the month. In July, we celebrated MSNBC's 30th anniversary, an important milestone for one of the country's leading news brands. MSNBC continues to accelerate. Golf Channel also had an outstanding quarter.

S. Open, and PGA Tour, and its signature events. In sports and entertainment, USA remained a top-five entertainment network among key demographics, extending a track record of leadership spanning more than three decades. Live sports continue to drive large, highly engaged audiences.

In the WNBA's first season on USA, the network aired the three most-watched games across cable and streaming, while League 1 Volleyball increased viewership over its inaugural season, and the WWE continued to deliver large audiences. We're investing in sports where we believe we can create long-term value. Last month we announced a five-year agreement with the Bundesliga, one of Europe's most renowned soccer leagues, known for passionate fans, iconic clubs and athletes, and global appeal.

Beginning this season, we will broadcast more than 300 live matches annually, with at least 30 premium matches airing on USA Network and all remaining matches streaming for free on Fandango. This agreement builds on our year-round sports offerings, expands our reach with soccer fans, and creates more opportunities to engage audiences across platforms. In addition to Bundesliga, the start of our NASCAR Cup Series coverage on USA Network begins this Sunday, and the return of the Premier League later this month provide a strong lineup of live sports as we enter the second half of the year.

In entertainment, we're driving viewership with a balanced portfolio of original programming and proven franchises. Our strategy is to build brands that engage audiences across multiple platforms for years to come, and that strategy is delivering results. Everything on the Menu saw double-digit ratings growth in its second season, and we're excited to build on that momentum with our next generation of originals, including Anna Pigeon and The Golden Life, set to premiere this month and fall, respectively. Platforms continue to be an important part of our long-term strategy, and both Fandango and GolfNow delivered strong results.

We are evolving Fandango from a leading movie ticketing business into a comprehensive entertainment platform. A few weeks ago, we launched our new AVOD service, bringing ticketing, home entertainment, and free streaming together under the Fandango name. AVOD is one of the fastest growing areas in media, and we enjoy clear advantages from the well-known Fandango brand, broad connected TV distribution, rich first-party data, and unique and exclusive content, most recently with the addition of the upcoming live Bundesliga matches. The Fandango platform we're creating is anchored by a differentiated core business, as demonstrated by healthy ticketing volume growth.

In any given month, 50 million consumers visit either Fandango or Rotten Tomatoes to decide what to watch. Together, these platforms enjoy loyal customer relationships and support our long-term growth strategy. GolfNow realized broad-based growth, including domestic rounds booked, global course relationships, payments volume, and GolfPass subscribers. We are further strengthening our leadership in golf and platforms with the acquisition of Full Swing.

Full Swing is a leading sports technology company serving one of the fastest growing segments in the golf industry through immersive off-course golf experiences. The acquisition expands our portfolio with an interactive offering spanning immersive simulation, launch monitors, virtual greens, integrated software, and performance data. As a trusted partner to many of the game's top players, Full Swing is growing rapidly, is profitable, and generates healthy recurring revenue. We believe Versant Media Group's leadership in golf uniquely positions us to accelerate adoption of Full Swing's technology across both consumer and commercial markets.

We believe there is meaningful upside in this market. S. off-course golfers, exceeding the number who play on traditional courses, and since 2019 the number of off-course golfers grew more than 60%, and simulator golfers grew by more than 150%. More importantly, Full Swing will expand our golf ecosystem by broadening our relationship with the golf community.

Together with Golf Channel, GolfNow, and GolfPass, we are uniquely positioned to connect premium content, commerce, technology, and participation, creating more ways to engage golfers throughout their journey. There are also additional opportunities beyond golf, including baseball, where Full Swing's technology is already used by both college and professional teams.

We are also advancing our direct-to-consumer strategies around MSNBC, which will launch its direct-to-consumer experience ahead of the midterm elections, giving audiences new ways to engage with its hosts, programming, and community while deepening engagement, strengthening the brand's relationships with viewers and fans. And at CNBC, we're developing a next-generation digital platform that will combine CNBC's trusted journalism, exclusive access to leading voices in business, and AI-powered investing tools to become a premier destination for investors.

Taking a step back, our accomplishments this quarter reinforced what we've believed since becoming an independent company just over seven months ago. We continue to deliver premium content that expands our audiences, delivered compelling results across pay TV and platforms, renewed distribution agreements with valued partners, and advanced a strategic initiative that will further strengthen our leadership in golf. Looking ahead, we'll continue to invest where we see competitive advantages and clear returns, extending the reach of our brands while creating long-term value through scalable platforms.

Today's announcement of an additional $100 million accelerated share repurchase program alongside our quarterly dividend reflects our commitment to returning capital to shareholders, the enduring strength of our business, and the confidence in the opportunities ahead. With that, let me turn it over to Anand. Wiley Collins, Executive Vice President of Treasury and Investor Relations Thanks, Mark, and good morning, everyone. Our second quarter results reflect another quarter of disciplined execution of our strategy and progress toward our financial objectives.

We delivered EBITDA growth, strong margins, and meaningful free cash flow while continuing to invest in the business to drive growth. 05 billion. 2 billion to account for natural quarterly fluctuations in working capital timing. 64 billion, a decline of 4% compared to the prior year.

Excluding the impact of the SportsEngine divestiture, revenue declined 3%. Our performance reflects the resilience of our brands, strong audience engagement, and continued momentum in platforms, mitigating the secular changes in pay TV. Turning now to the components of revenue, linear distribution revenue was 954 million, down 6% year over year, reflecting subscriber declines that were partially offset by contractual rate increases. These trends were consistent with the prior year's performance.

6% decline year over year compared with a 13% decline in the prior-year period. The improvement was driven by strong demand across our news and sports portfolio, favorable network ratings, and additional revenue from our acquisition of free TV networks. Platforms was the fastest-growing part of Versant Media Group, with revenue increasing to 225 million in the quarter and continues to play an important role in evolving our revenue base. Excluding the impact of the SportsEngine divestiture, revenue increased 9% driven by momentum at both Fandango and GolfNow.

S. bookings, payments processed, and GolfPass subscriptions. We're encouraged by the performance and continued progress in scaling platforms. Content licensing and other revenue was 43 million, which was flat year over year following the sharp uptick in the first quarter.

As we've discussed previously, this category can fluctuate from quarter to quarter based on the timing of licensing agreements. We view content licensing as a growth area over time as there's continued demand for our owned programming and library. Adjusted EBITDA for the quarter was 624 million, an increase of 3%, and reflects the breadth and depth of our audience, continued platforms growth, and disciplined expense management. Our margins remain above 30%.

Turning to expenses, we are focused on managing costs while investing behind our strategic priorities. Programming and production costs were 522 million, down 9% from prior year as we continue to deliver premium content in a cost-efficient manner. Programming costs fluctuate throughout the year, largely based on the timing of sports events. As we shared on the first quarter call, we expect sports rights costs to meaningfully increase in the second half, further impacted by an increase in NASCAR races this year, our first season with the WNBA, and golf events.

Each of these reflects the strength of our sports portfolio and breadth of audience. In light of this, we expect second half programming costs to increase year over year, and in turn adjusted EBITDA for Q3 and Q4 is unlikely to demonstrate growth versus the prior year. Other costs of revenue were 128 million, 1 million higher than in the prior-year quarter. Increased costs due to higher transactional volumes related to our digital platforms and from our acquisition of Indie Cinema, now rebranded Fandango One, were largely offset by decreased costs from our divestiture of SportsEngine.

Total cost of revenue, representing the sum of programming and production costs and other costs of revenue, were 650 million, down 7% from the prior year. Selling, general, and administrative expenses were 369 million, a decrease of 8% compared to the prior year. Looking ahead, we expect modest increases in SG&A as we support our growth initiatives, including the development of the upcoming MSNow and CNBC direct-to-consumer offerings. We are focused on identifying efficiencies across our organization that will benefit 2026 and beyond, such as by optimizing our infrastructure and deploying technology to streamline workflows and improve productivity.

Finally, with regard to cash generation, liquidity, and capital allocation, free cash flow totaled 350 million during the quarter. As we've noted before, the timing of working capital and tax payments can create quarterly variability in free cash flow, and we anticipate higher CapEx in the second half of the year, largely associated with construction at our New York office facility. As with adjusted EBITDA, we continue to anticipate that second half free cash flow will be lower than the first half. Despite these timing distinctions, our business model delivers strong cash conversion on an annual run-rate basis.