Versant topped Wall Street’s consensus revenue forecast for the third quarter, reporting $1.59 billion as growth from its platforms business helped counter a decline in advertising.

The cable TV-focused spinoff from NBCUniversal, whose assets include CNBC, MS NOW, USA and Golf Channel, reported $373 million in advertising revenue, down 5.3 percent. Platforms revenue reached $245 million, an increase of 9.6 percent.

Versant also listed $935 million in linear distribution revenue and $302 million in free cash flow for the quarter. The company has been working toward an even split between advertising and platforms revenue.

Profit measures were less buoyant. Adjusted EBITDA fell 7.4 percent to $353 million, while net income came in at $47 million. Versant reported earnings per share of 34 cents.

New Products and Completed Deals

The quarterly results arrived alongside several developments across Versant’s portfolio. Fandango recorded a strong period for ticket sales and launched its advertising-supported video-on-demand platform during the quarter.

MS NOW also debuted its direct-to-consumer offering, MS NOW Membership. CNBC’s direct-to-consumer product is set to follow next year.

Elsewhere, Versant closed its acquisition of Full Swing this summer and integrated the business into what the company calls its golf ecosystem. Versant also completed the major distribution agreements it had pending, including all of its planned pay television distribution renewals for the year.

The company says its networks reach more than 120 million viewers each month. It also pointed to Anna Pigeon, which became cable’s most-watched new scripted series this year.

“Versant’s momentum continues, with audience growth and the completion of all planned Pay Television distribution renewals for the year, underscoring the value and enduring appeal of our brands,” CEO Mark Lazarus said.

Lazarus said the company’s third-quarter activity advanced Fandango’s transition into a broader entertainment platform, brought Full Swing into its golf operations and established a direct connection with audiences through MS NOW Membership.

“We’re building deeper consumer relationships, expanding our reach and creating new opportunities for growth and monetization across our four core markets,” he added.

Outlook Holds as Cash-Flow Forecast Rises

Versant reaffirmed its full-year revenue and adjusted EBITDA outlook. The company also said it now expects free cash flow to exceed its previous forecast of between $1 billion and $1.2 billion.

CFO and chief operating officer Anand Kini credited the quarter’s results to strong platforms revenue, operating efficiencies and cash generation. He said the company’s financial position gives it room to invest in growth, maintain what he described as a healthy balance sheet and return capital to shareholders.

At the time of the announcement, Versant had returned $457 million to shareholders. Kini also highlighted a newly announced additional planned $100 million ASR and the declaration of the company’s quarterly dividend.

ShowBiz Take

Versant’s revenue beat matters because it came despite a measurable decline in advertising, traditionally a major source of income across its cable-focused portfolio. The 9.6 percent rise in platforms revenue, together with the launches at Fandango and MS NOW, shows where the company is seeking additional momentum as it pursues its 50/50 advertising and platforms revenue target.

The quarter was not uniformly positive: adjusted EBITDA declined, and advertising revenue remained under pressure. Even so, Versant completed its planned pay television renewals, introduced new consumer-facing products and raised its free-cash-flow expectations above the previous range.

Those developments give the company multiple routes for growth and monetization across its businesses without erasing the challenge reflected in the advertising and adjusted EBITDA declines.

What Happens Next?

The next confirmed product step is CNBC’s direct-to-consumer launch, which is planned for next year. Versant will also continue working toward its desired 50/50 revenue mix while carrying out the additional planned $100 million ASR and maintaining its reaffirmed full-year revenue and adjusted EBITDA outlook.