Versant Media raised its 2026 revenue forecast to $6.2 billion to $6.45 billion, up from its prior range of $6.15 billion to $6.4 billion, citing strong growth in its digital platforms and advertising sales. The company also reported second-quarter revenue of $1.64 billion, beating analyst expectations of $1.62 billion.
Digital platforms drive growth as pay-TV revenue declines
Versant’s Platforms division, which includes Fandango, Rotten Tomatoes, and GolfNow, grew 9.3% year-over-year, excluding the divested SportsEngine business, making it the company’s fastest-growing segment. The division’s success is attributed to a Fandango ad-supported streaming service launched in the quarter, which combines movie-ticketing, home entertainment, and free streaming. Versant reported that 50 million consumers visit Fandango or Rotten Tomatoes monthly, providing a large audience for advertising and monetization.
Meanwhile, linear TV distribution revenue fell 6.3% in the three months ended June 30, continuing a trend of subscriber declines. Despite this, Versant’s news and sports programming, including CNBC and MS NOW, maintained strong viewership. CNBC delivered its highest-rated quarter in over five years, driven by coverage of the SpaceX IPO and a high-profile interview with Jeff Bezos, which generated over 100 million video views.
New initiatives target digital audiences
Versant is expanding its digital offerings to attract younger viewers. The company announced plans for MS NOW, a direct-to-consumer service featuring live and exclusive content through ad-supported and premium tiers. Additionally, Versant secured a five-year Bundesliga rights agreement and will broadcast the return of the Premier League this month, bolstering its sports programming slate.
Leadership and long-term strategy
CEO Mark Lazarus emphasized the company’s transition toward a more diversified revenue base, aiming for a 50% split between digital, platform, subscription, and ad-supported businesses to reduce reliance on linear TV. Versant also completed carriage agreements with two large distribution partners, one in the U.S. and one in Canada, to stabilize its traditional business during the transition.
The company’s second-quarter earnings per share came in at $1.49, exceeding Wall Street’s estimate of $1.35. Versant’s stock rose 7.4% in premarket trading following the announcement.