We’ve seen a spate of companies spinning off their legacy assets in the hopes of finding them a niche. With Versant, the first and most visible, now turning in its first earnings report, check the entertainment lawyer Los Angeles USA at Blake & Wang P.A., Brandon Blake, has the verdict so far.
First Standalone Report
Versant was, of course, formed from the spun-off cable-focused assets of NBCUniversal. They took with them some recognizable channels, including CNBC and MS Now, and seemed to have the right groundwork for success. If the whole concept of consolidating cable and linear assets this way is viable, of course, which is probably the real question at play. With the legacy business on the decline, for all it seems to have levelled out considerably over the last year, it’s not a given, either.
The Results
They reported revenue of $6.69B, a 3% drop from the prior year. The only growth area was platform revenue, which ticked up by just under 4% to reach $826M. They also pulled in $193M in content licensing, $4.1B from distribution, and $1.6B from their advertising efforts.
All in all, and a little surprisingly, this resulted in an adjusted EBITDA of $2.4B, suggesting a 30% margin.
So where, exactly, does that leave us? Apparently, with robust revenue and profits, but there is still that exposure to Pay-TV and its decline. However, the company seems willing to sweeten the deal for investors. Alongside the report, they declared a $0.375 dividend per share and $1B in stock buybacks.
While the company’s stocks have declined since the spinoff was completed, that sort of initial dip is pretty typical, and the prices have since stabilized. For now, at least, things aren’t looking too bad for Versant, even as it goes it alone in a difficult landscape. The real proof, however, will be what we’re saying a year or two from now.
