Versant Media shares jumped nearly 12% after the company raised its full-year revenue outlook, even as third-quarter sales declined in its third earnings report since spinning off from Comcast.
The owner of cable networks CNBC, MS NOW and E! now expects annual revenue of $6.2 billion to $6.45 billion, up from its May forecast of $6.15 billion to $6.4 billion. Analysts estimate $6.41 billion.
The company posted a profit of $211 million, or $1.49 a share, down from $302 million, or $2.09 a share, a year earlier but above the $1.35 consensus forecast by FactSet analysts. Revenue fell 3.8% to $1.64 billion, beating the $1.62 billion projection.
Linear distribution revenue dropped 6.3% to $954 million. Advertising and content licensing revenue each fell less than 1%. Platforms revenue rose less than 1% overall and increased 9% excluding SportsEngine.
Executives had previously warned of quarterly fluctuations from content licensing, working capital and higher second-half programming costs, which are factored into the updated full-year guidance.
Versant’s platforms reached more than 120 million viewers monthly during the quarter, Chief Executive Mark Lazarus said. The company also secured multiyear renewal deals with two large distribution partners in the U.S. and Canada.