Versant earnings report will test Wall Street appetite for cable TV
Versant sign on the floor at the New York Stock Exchange on July 21, 2025.
Michael Nagle | Bloomberg | Getty Images
Versant Media Group It will release its first earnings report as a publicly traded company on Tuesday, offering Wall Street a first look at a company comprised primarily of pay TV networks.
comcast spinoff – CNBC, MS Now, USA Network, Golf Channel, Syfy, E! and Oxygen, as well as digital properties such as Fandango, Rotten Tomatoes, GolfNow and Sports Engine, debuted on Nasdaq in January following one of the media industry’s most significant transactions in recent years.
of the company first trimester results It will provide more detail on Comcast’s portfolio of assets that have long been featured in NBCUniversal TV results. They will also test Wall Street’s appetite for cable TV at a time when the market is facing deep pressures.
Before going public, Versant released financial data showing its revenue had declined in recent years. Versant’s assets generated $7.1 billion in revenue in 2024, up from $7.4 billion in 2023 and $7.8 billion in 2022, according to a Securities and Exchange Commission report.
Shares of Versant have fallen nearly 25% since its debut in January, driven by expected sales related to the spinoff. The market value of the company is approximately $4.8 billion.
Pay TV edition
It’s rare to see pure-play media stocks go public these days, especially those consisting solely of TV networks. Last year NewsmaxThe conservative cable news network began trading on the New York Stock Exchange. Its shares rose before falling quickly since its debut.
Versant generates more than 80% of its total revenue from pay-TV distribution. While the business is still profitable, the media industry’s longtime cash flow is dwindling as customers flee the pack for streaming alternatives.
“At Versant, 62% of our audience comes from live programming related to sports and news,” CEO Mark Lazarus said at the company’s investor day in December.
“We are very confident in our position. I think the agreements we made last year show this,” he added.
Versant’s sports and news-heavy content slate has been a key part of its pitch to investors, as has its light debt load and emphasis on digital properties as future drivers of revenue and earnings growth.
Versant CEO Mark Lazarus visits the podium at the New York Stock Exchange (NYSE) on July 21, 2025 in New York City, USA.
Brendan McDermid | Reuters
“Versant’s sports and news focus is positive as it has significantly fewer undervalued general entertainment networks than some of its peers,” Raymond James analysts wrote in a research note earlier this year. “While Versant may be missing ‘Tier One’ sports like NFL, NBA, college football, etc., we think its sports lineup combined with MS NOW, CNBC, and other networks (major golf rights, WWE, NASCAR, etc.) supports VSNT’s value to distributors.”
Prior to the split, NBCUniversal negotiated carriage agreements with NBCUniversal. most major distributorslike Charter Communications And Google’s YouTube TV, which includes Versant’s networks. These agreements remain valid for at least the next two years, even after the split; an important buffer as these negotiations become increasingly fraught and could lead to content outages.
“More than half of our pay TV subscribers are under deals that extend through 2028 and beyond…many of our sports deals…extend well beyond 2030,” Versant COO and CFO Anand Kini said at the investor day. “We see this as really important because the long-term nature of these partnerships underlines the stability of our business and also provides great visibility for years to come.”
Versant networks will face the first test alone at the negotiating table with the renewal of two distribution deals this year, according to people familiar with the matter who spoke on condition of anonymity because they were not authorized to speak publicly. A Versant spokesman declined to comment on the upcoming discussions.
Typically news and sports networks carry more weight during such negotiations, but cuts are becoming more common even for top-tier rights holders like the NFL.
‘Business model transition’
But the traditional TV bundle has shown a glimmer of stability recently, despite the focus on streaming.
Charter, one of the bundle’s largest distributors in the U.S., reported the addition of cable customers in the quarter ending Dec. 31; This was the first quarterly increase since 2020.
But Comcast and other distributors still reported customer losses, albeit at a slower rate than recent declines. This is a sign of possible stability, according to MoffettNathanson analyst Craig Moffett.
In light of its dominance in traditional TV networks, Versant’s leadership has told Wall Street it is in the midst of a turning point.
“We see 2026 as the first year of our business model transition,” Kini said in December.
Versant executives have told Wall Street of their intention to invest in its direct-to-consumer products and ad-supported TV expansion, among other growth initiatives.
Long term, executives are aiming for a future where 50% of Versant’s revenue comes from pay TV, with the other 50% coming from digital, platform, subscription, ad-supported and transactional businesses.
Mergers and acquisitions are another part of the equation, but growth in linear TV networks is not in the plan, executives said. The company has already announced deals such as: win It is a joint venture between free digital broadcast networks provider Free TV Networks and cloud-based cinema operating system Indy Cinema Group. folded Fandango.
But the question is: Does Wall Street have the patience to see the business move beyond focusing on the package?
The spinoff of Comcast’s Versant channels was an effort to separate itself from a deteriorating business. Warner Bros. Discovery It followed a similar route, announcing that it would separate its TV networks from its streaming assets before reaching a deal with . Paramount Skydance Selling the entire company.
Analysts who have begun covering Versant still express some hesitation as they list various highlights of the business, from strong free cash flow to a portfolio heavy on sports and news.
“We are rated Neutral on VSNT given the persistent challenges in the linear network business. [remaining] Goldman Sachs analysts said in a research note in January that they were encouraged by the company’s efforts in its platform business.
