Versant Media Group, Inc. reported a 41.1% drop in third-quarter profit as subscriber losses reduced linear distribution revenue, adding pressure on earnings despite growth in its platforms business.
Net income attributable to Versant was $47 million for the three months ended Sept. 30, compared with $80 million a year earlier. Revenue declined 4.2% to $1.594 billion, the company said in results attached to its Nov. 3 SEC filing.
Linear distribution revenue fell 5.8% to $935 million. The company linked lower linear distribution revenue chiefly to subscriber attrition, while rate adjustments in existing contracts cushioned part of the decline. Advertising revenue decreased 5.3% to $373 million; advertising revenue faced a tougher year-over-year comparison because the Ryder Cup fell in the prior-year period, the company said.
Platforms revenue rose 9.6% to $245 million. Excluding the SportsEngine divestiture and Full Swing acquisition, growth was 17.4%. The division was also the focus of earlier coverage of Versant's third-quarter results.
Adjusted earnings before interest, taxes, depreciation and amortization (EBITDA) fell 20.9% to $353 million from $445 million on a reported basis. Compared with Versant's $381 million prior-year standalone figure, the decline was 7.4%. Versant cited weaker revenue and the costs of operating as a standalone public company, including interest expense following its separation from Comcast, as drivers of lower net income.
Versant generated $346 million in net cash from operating activities and $302 million in free cash flow during the quarter. It maintained its 2026 forecasts of $6.2 billion to $6.45 billion in revenue and $1.90 billion to $2.05 billion in adjusted EBITDA. The company expects free cash flow to exceed its previous range of $1 billion to $1.2 billion.
Versant completed a $100 million accelerated share repurchase covering about 2.6 million shares in the third quarter. Its board declared a dividend of $0.375 per share, payable Jan. 25, 2027. The company plans to begin another $100 million repurchase on Nov. 4 and complete it in the fourth quarter.
