Comcast spin-off Versant launches $1bn buyback despite weaker annual results

Cable TV group Versant Media posted its debut earnings report on Tuesday following its spin-off from Comcast in January, which showed a slight fall in annual revenues, as the company expressed ambitions to shift its ramp up its growing non-pay TV arm.

The company, formed from NBCUniversal's pay TV networks and other assets which were separated from Comcast's flagship content production, broadcasting, film studios, streaming and themed entertainment businesses, announced an annual dividend of $1.50 per share and its first share buyback programme worth up to $1bn.

Versant reported a 5.3% decline in annual revenues to $6.69bn, with adjusted EBITDA falling 14.5% to $2.43bn.

Linear distribution operations, which account for the bulk of revenues, showed a 5.4% decline in the top line to $4.09bn, while advertising revenues slumped 8.9% to $1.58bn and content licensing and other operations showed an 8.5% fall to $193m.

Non-pay TV revenues, comprising its platform businesses, accounted for 19% of total group turnover last year, and were the only area of the business to grow.

According to an earnings call with chief executive Mark Lazarus, the firm wants Platforms to account for 33% of the business within five years and 50% over the long term.

“Versant enters this next chapter as an independent, well-positioned media and entertainment company with strong momentum and clear strategic focus," Lazarus said in a statement.

Chief financial officer and chief operating officer Anand Kini said: "Looking ahead, we are investing in exciting new initiatives across our brands to extend audience reach, grow new revenue streams, and deliver attractive financial returns."

The stock was up 3.1% at $33.75 by 1503 GMT.