Aug 6 (Reuters) – Versant Media raised its annual revenue forecast on Thursday as higher advertising sales, driven by strong demand for its news and sports programming, and digital platform growth offset weak quarterly pay-TV distribution revenue.
Shares of the New York-based company rose 7.4% in premarket trading.
Revenue at Platforms division grew 9.3%, excluding the divested SportsEngine business, making it Versant’s fastest-growing part. The company is positioning the segment, which includes Fandango, Rotten Tomatoes and GolfNow, as its main growth driver as legacy business contracts.
During the second quarter, Versant launched a Fandango ad-supported streaming service that combines movie-ticketing, home entertainment and free streaming under one brand. About 50 million consumers visit Fandango or Rotten Tomatoes each month, it said — providing a large audience to monetize through advertising and streaming.
The company enters the second half with a strong sports slate, including NASCAR, the return of the Premier League this month, ongoing WWE programming and a new five-year Bundesliga rights agreement.
Still, Versant’s largest business remains under pressure. Linear distribution revenue fell 6.3% in the three months ended June 30 as subscriber declines continued.
However, CNBC delivered its highest-rated quarter in more than five years. Coverage of the SpaceX IPO drove the network’s highest-rated day over the same period, while Andrew Ross Sorkin’s interview with Jeff Bezos generated more than 100 million video views across platforms.
News channel MS NOW is preparing a direct-to-consumer service offering live and exclusive content through ad-supported and premium tiers to attract younger digital audiences.
Versant now expects 2026 revenue of $6.2 billion to $6.45 billion, up from its prior forecast range of $6.15 billion to $6.4 billion.
Second-quarter revenue came in at $1.64 billion. Analysts on average expected $1.62 billion, according to data compiled by LSEG.
(Reporting by Anzar Mehraj and Harshita Mary Varghese in Bengaluru; Editing by Joyjeet Das)
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