Versant, the cable TV-focused subsidiary of NBCUniversal that owns CNBC, MS NOW USA, the Golf Channel and other assets, reported its first earnings report as an independent company on Tuesday.
This report clearly highlighted the risks and rewards that come with exposure to pay TV, even as the company itself focuses on transforming its business model over time to be less reliant on declining legacy businesses.
Versant reported 2025 revenue of $6.69 billion, down 3.3 percent from 2024. Of that, $4.1 billion came from distribution revenue, $1.6 billion from advertising revenue, with $826 million from platform revenue, the only growth area, up 3.9 percent from last year, and $193 million from content licensing.
But the company’s adjusted EBITDA was $2.4 billion, giving it a margin of more than 30 percent, even if EBITDA was down 14.5 percent compared to 2024.
The result is a company with strong revenues and profits, but one that is nonetheless vulnerable to structural decline in the pay-TV business. To help attract investors, Versant on Tuesday announced a $0.375 per share dividend and a $1 billion stock buyback. Versant shares have fallen more than 25 percent since the company completed its spin-off in January, and while the initial decline was expected due to forced selling by stock indexes, the price appears to have stabilized since then.
But the company’s plan is to use this cash flow and profits to fund the “evolution” of its pay-TV business model, developing its direct-to-consumer offering and digital business lines.
In news, this means MS NOW’s upcoming DTC offering is focused on community and exclusive content, with CNBC planning a “next-generation” DTC platform designed specifically for retail investors.
In sports and entertainment, that means expanded rights deals for Golf Channel and USA Sports with partners like the PGA, USGA and WNBA, and plans for the Fandango-branded FAST service.
“Versant enters this next chapter as a well-positioned, independent media and entertainment company with strong momentum and a clear strategic focus,” said Mark Lazarus, CEO of Versant. “In 2025, we have strengthened our leadership in premium programming, expanded our audience, grown our cross-platform business, and established ourselves as an independent company. I couldn’t be more excited about what’s next as we invest in our iconic brands to evolve our business model. We aim to do this with a focus on delivering strong shareholder returns, both in the near and long term.”
