Versant Media said second-quarter net income fell by 30% as the new media company continued its efforts to add non-traditional assets to lend ballast to its linear media operations.
The owner of MS NOW, CNBC and USA said net income fell to $211 million from $302 million in the year-earlier quarter, a decline of $91 million. The company cited lower revenue, the costs of operating as a public company, interest expense following its separation from Comcast, and increased tax expense tied mostly to the divestiture of SportsEngine, an online sports management software company that was sold in May.
Versant, spun off from Comcast earlier this year, is focused on generating new revenue from digital and direct to consumer operations. In recent weeks, it has expanded Fandango into a broader consumer entertainment platform, and made progress on new subscription projects at both CNBC and MS NOW. “Together, we believe these initiatives build on the foundation of our portfolio, deepen consumer engagement, and position Versant for long-term growth,” said Mark Lazarus, the company’s CEO.
Revenue in the second quarter fell 3.8% to $1.64 billion. Distribution fees fell 6.3% in the second quarter, largely due to subscriber declines. Ad revenue was off 0.6%, compared with a decline of 13% in the year-earlier quarter, reflecting improvements in ratings at some of its networks. Revenue from platforms, which include many of Versant’s direct to consumer businesses, rose 0.8%, due to higher revenue at Fandango and GolfNow.
Versant said it was confident in its near-term future, raising revenue and cash-flow projections for the second half of the year.