Versant Media Group (VSNT) investor relations material

Executive summary

• Revenue for Q1 2026 was $1.69 billion, down 1.1% year-over-year, with net income of $286 million and adjusted EBITDA of $704 million, reflecting strong digital platform growth and the first quarter as an independent company post-Comcast separation.

• Platforms business delivered high single-digit growth, led by GolfNow and Fandango, while content licensing surged due to major agreements.

• Maintained leadership in business news, political news, golf, and sports/entertainment, with significant audience engagement and monetization progress.

• Completed separation from Comcast on January 2, 2026, incurring $3.0 billion in new debt and a $2.25 billion payment to Comcast.

• Cash flows from operations increased to $585 million, up from $478 million in Q1 2025.

Financial highlights

• Total Q1 revenue was $1.69 billion, down 1.1% year-over-year; linear distribution revenue declined 7.3% to $1.01 billion, and advertising revenue fell 5.2% to $368 million.

• Platforms revenue rose 9.5% to $192 million, driven by GolfNow and Fandango; content licensing and other revenue more than doubled to $121 million due to major library deals.

• Adjusted EBITDA was $704 million, down 7% year-over-year, but standalone adjusted EBITDA rose 4.8% due to lower programming and SG&A costs.

• Free cash flow was $558 million, with net cash from operating activities at $585 million.

• Programming and production costs fell 5.2% to $519 million; SG&A costs decreased 9% to $346 million.

Outlook and guidance

• Full-year 2026 guidance: revenue of $6.15–$6.4 billion, adjusted EBITDA of $1.85–$2.0 billion, and free cash flow of $1.0–$1.2 billion.

• Expects quarterly fluctuations due to content licensing, working capital, and higher programming costs in the second half, especially Q4.

• SG&A and capital expenditures projected to rise modestly to support D2C initiatives and facility investments.

• Management expects continued declines in linear distribution and advertising revenue due to industry trends and audience fragmentation.

• Digital platform revenue is expected to grow as investments continue in this area.