Versant Media Group, Inc. (NASDAQ:VSNT) shares are trading higher Thursday after the company reported better-than-expected first-quarter financial results.
- Versant stock is among today’s top performers. What’s fueling VSNT momentum?
Q1 Highlights
Versant reported earnings per share of $1.99, beating the consensus estimate of $1.63. In addition, it posted revenue of $1.69 billion, beating the consensus estimate of $1.62 billion, but representing a 1.1% year-over-year decline.
Linear Distribution revenue declined 7.3% in the first quarter, primarily due to subscriber declines, partially offset by contractual rate increases.
Advertising revenue fell 5.2%, driven primarily by decreases at the company's networks due to ratings declines.
Platforms revenue increased 9.5%, primarily due to higher revenue at Fandango from movie ticketing purchases, video-on-demand transactions and Fandango1, as well as higher bookings, payments and subscription revenue at GolfNow.
Content licensing and other revenue increased primarily due to the timing of content licensing agreements, including a large agreement for "Keeping Up with the Kardashians" and other titles recognized during the quarter.
"Our first quarter as an independent company marks an important milestone for Versant and reflects a solid start to the year," said CEO Mark Lazarus.
Lazarus said the company delivered strong financial results, audience engagement and momentum in its Platforms business while continuing to expand the reach of its brands and digital platforms.
The company also highlighted shareholder return initiatives. Versant said its board declared a second quarterly cash dividend of 37.5 cents per share, payable on July 22, to shareholders of record as of July 1.
During the first quarter, the company repurchased 2,694,125 shares of Class A common stock. Approximately $900 million remained under the existing authorization as of March 31.
Versant also announced plans to enter into a $100 million accelerated share repurchase agreement beginning May 15, with the transaction expected to be completed during the second quarter of fiscal 2026.
"Our first quarter results demonstrate the durability of our operating model, with robust profitability and Free Cash Flow generation," said CFO and COO Anand Kini.
Versant Shares Gain
VSNT Price Action: At the time of publication, Versant shares are trading 7.42% higher at $43.44, according to data from Benzinga Pro.
This illustration was generated using artificial intelligence via Midjourney.
Login to comment