• Versant reported second-quarter net income of $211 million, down 30% from $302 million a year earlier as revenue fell 3.8% to $1.64 billion
• Versant posted earnings per share of $1.49, compared with $2.09 a year earlier and above the $1.42 per share analyst expectations, according to Yahoo Finance.
• Shares of Versant rose about 7% in premarket trading Thursday following the results

Versant is laying more of the groundwork for life beyond the traditional cable bundle, offering new details Thursday on its forthcoming direct-to-consumer products for CNBC and MS NOW as its linear distribution business continued to decline.

The Comcast spinoff plans to launch the products independently before potentially teaming with other distributors, with CEO Mark Lazarus saying Versant is “open and having active discussions across the industry on where bundles might make sense.”

Bundles have been on the mind in the wake of NBCUniversal’s deal to bundle its Peacock Premium streaming service with YouTube Premium starting next year. With the number of streaming options growing amid consumers tightening their belts, the players have been more keen to strike partnerships to win subscriber dollars.

For Versant, which is getting into the game late, it’s a matter of expanding beyond its linear roots.

“We are creating direct to consumer products, not streaming products,” Lazarus told analysts during Versant’s second-quarter earnings call, emphasizing that the offerings are intended to extend beyond simply replicating what the networks already offer on television.

MS NOW’s direct-to-consumer product is expected to launch ahead of the midterm elections, giving audiences new ways to engage with its hosts, programming and community. CNBC, meanwhile, is developing a next-generation digital platform combining its journalism and access to business leaders with AI-powered investing tools aimed at retail investors.

The products are part of Versant’s broader effort to generate more revenue outside the shrinking pay TV bundle through subscription, platform and digital businesses — a transition underscored by the company’s latest financial results.

Mixed bag

Versant reported second-quarter net income of $211 million, down 30% from the $302 million a year ago. Revenue fell 3.8% to $1.64 billion. Per-share earnings came in at $1.49, down from $2.09 a year ago.

Wall Street, on average, expected earnings of $1.42 a share on revenue of $1.62 billion, according to Yahoo Finance.

Shares rose 14.4% to $40.92.

Advertising revenue declined just 0.6% — a significant improvement from the 13% drop in the prior-year quarter — while platforms revenue excluding SportsEngine grew 9.3%, making it Versant’s fastest-growing business. Linear distribution revenue declined 6.3% as subscriber losses continued to weigh on the legacy pay TV business.

Versant said lower revenue, public company costs following its separation from Comcast, higher interest expense and increased tax expense related largely to the SportsEngine divestiture weighed on quarterly net income.

The company raised its full-year 2026 outlook, now expecting revenue of $6.2 billion to $6.45 billion and adjusted earnings before interest, taxes, depreciation and amortization of $1.9 billion to $2.05 billion. Versant maintained its free cash flow outlook of $1 billion to $1.2 billion.

Executives clarified during Thursday’s call that the higher outlook was not primarily driven by Versant’s recently completed acquisition of golf technology company Full Swing, but instead reflected confidence across the broader portfolio and momentum from the first half of the year.

“Versant’s brands once again demonstrated strength, durability and scale, reaching more than 120 million viewers each month during the quarter while reinforcing our leadership across news, sports and entertainment,” Lazarus said in a statement.

Beyond the financial results, Versant highlighted continued audience momentum across several of its flagship brands. MS NOW posted its seventh consecutive month of year-over-year audience growth and ranked as the No. 1 news organization on YouTube in June, while CNBC delivered its highest-rated quarter in more than five years and remained among the top 10 cable networks during market hours for a fourth consecutive month.

Golf Channel recorded its most-watched second quarter since 2020, and USA Network remained a top-five cable entertainment network among key demographics as live sports continued to drive viewership.

Versant is pursuing a similar expansion beyond linear television with Fandango, which recently launched its new ad-supported streaming offering. Executives said Thursday that the company plans to use its Bundesliga rights in part to attract new audiences to the platform, with hundreds of matches streaming for free on Fandango and select premium matches airing on USA Network.