Business
IMF warns Iran war disruptions are pushing global economy towards ‘adverse’ scenario; growth risks rise
The International Monetary Fund (IMF) on Thursday warned that continued disruptions from the Iran war are pushing the global economy closer to an “adverse” scenario marked by slower growth, tighter financial conditions and rising inflation risks, AFP reported.Last month, the IMF’s World Economic Outlook projected global growth at 3.1 per cent for 2026 under its baseline or “reference” scenario, while cautioning that a prolonged conflict could significantly weaken the outlook.Under the Fund’s “adverse” scenario –where oil prices remain elevated for a longer period, inflation expectations become unstable and financial conditions tighten –global growth could slow to 2.5 per cent.“We are moving into the adverse scenario, but inflation expectations are still reasonably well anchored, and financial conditions still remain accommodative,” IMF chief spokesperson Julie Kozack told reporters in Washington.The IMF has also outlined a more severe scenario under which global growth could slow to 2 per cent while inflation rises to 6 per cent.The multilateral lender is expected to release an updated World Economic Outlook in July.The ongoing US-Israel war on Iran has disrupted the Middle East and sharply escalated tensions across the region, with retaliatory actions by Tehran targeting US regional allies and severely affecting movement through the Strait of Hormuz.The strategic waterway typically handles nearly one-fifth of global oil and gas supplies, and the disruption has triggered a sharp rise in global energy prices.Kozack said the IMF was engaged in “active discussions” with several member countries facing economic pressures from the conflict.“Many countries are actually asking us for support in the policy area,” she said.During the IMF’s spring meetings last month, Managing Director Kristalina Georgieva had indicated that as many as 12 countries may require IMF financial assistance, with total support needs estimated between $20 billion and $50 billion.Kozack said discussions on financial support were continuing but declined to identify the countries involved.The IMF also flagged rising concerns around global food security as fertiliser supplies have been disrupted due to the blockade-linked disruptions in the region.“We know from history that when fertilizer prices increase, that it takes about six months or so for this to translate into increased food prices and, in some cases, reductions in yields and food security issues,” Kozack said.
The Communist-run island has seen rare protests over worsening power cuts due to shortages of fuel.
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The BBC has heard concerns about poverty and cost of living from St Helier Central voters.
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Business
Versant stock jumps 10% after company’s Q1 report shows bright spots in licensing, platforms
Versant Media Group on Thursday unveiled results for its most recent quarter — its first as a stand-alone company after separating from Comcast’s NBCUniversal and beginning to trade on the Nasdaq earlier this year.
The report revealed continued pressure in the traditional pay TV bundle but highlighted growth in digital platform and licensing businesses.
Versant stock rose roughly 10% in early trading.
Linear distribution revenue for its pay TV networks — which include CNBC, MS NOW and the Golf Channel as well as USA, E!, Syfy and Oxygen — was down roughly 7% during the period to $1.01 billion. The company said that was due to subscriber declines and partially offset by rate increases.
Advertising revenue for the first quarter fell 5% to $368 million, which was considered an improvement from the same period last year when it posted a 12% decline.
Revenue from content licensing, however, rose 113.5% to $121 million, due largely to the licensing of the longtime reality TV series hit “Keeping Up With the Kardashians” and other related content to Disney’s Hulu.
Revenue from Versant’s platforms business, which includes Fandango, GolfNow and some of the already launched direct-to-consumer units, was up 9.5% to $192 million.
CEO Mark Lazarus said on Thursday’s earnings call with investors that the company aims to “build scale and expand our audiences” in direct-to-consumer.
“Yes, we hope that comes with a large base of subscribers, and we’ll gauge ourselves as [to] how do revenues look across all of our various forms of distributing content,” he said.
Lazarus added that the company is working to make sure it grows “revenue diversification within each of our verticals.”
More than 80% of Versant’s revenue comes from the pay TV business. However, executives have told Wall Street that it aims to eventually rebalance its revenue mix so that 50% is derived from its digital, platform, subscription, ad-supported and transactional businesses.
Overall revenue for the period ended March 31 was down about 1% compared with the same quarter last year to $1.69 billion. Wall Street analysts polled by LSEG had expected revenue of $1.62 billion.
Net income attributable to Versant decreased 22% to $286 million, or $1.99 per share, for the quarter, which the company said was due to lower revenue, higher public company costs and interest expense following the spinout from Comcast. This was partially offset by lower taxes during the quarter, it said.
Adjusted earnings before interest, taxes, depreciation and amortization fell 7% from the same period last year to $704 million.
When compared with stand-alone adjusted EBITDA, a metric to more directly compare performance of the pre-spin portfolio companies to current results, adjusted EBITDA was up about 5%, Versant said. That was due to lower entertainment programming expenses and reduced selling, general and administrative costs, which offset revenue declines.
Growth avenues
Versant has consistently touted its strength in sports and news. On Thursday the company highlighted viewership increases for CNBC and MS NOW as well as continued momentum for the Golf Channel and other live sports and events on its networks.
The company has been exploring growth through mergers and acquisitions, and obtaining more sports rights. On Thursday, Lazarus said Versant has been “looking in a variety of areas” when it comes to potential deals.
CFO and COO Anand Kini added during Thursday’s call that while exploring M&A remains a part of Versant’s strategy, the company is also looking to maintain a healthy balance sheet and is focused on organic growth within its businesses.
“Our platforms revenue growth this quarter demonstrates that was really organic growth in GolfNow and Fandango,” Kini said. “So we’re going to look when there’s opportunities that are inorganic, [but] they have a very high threshold even as they fit within those markets and those strategies.”
The company also continued on its earlier pledge of returning capital to its shareholders, mainly due to its light debt load.
The company on Thursday declared a quarterly cash dividend for the second quarter in a row, each time at 37.5 cents per share. The new dividend is payable on July 22 to shareholders of record as of the close of business on July 1.
Versant also announced that it expects to enter into a $100 million accelerated share repurchase agreement, beginning Friday, which it anticipates completing during the second quarter. Versant repurchased nearly 2.7 million shares of Class A common stock during the first quarter, with a remaining authorization of roughly $900 million as of March 31, it said.
Disclosure: Versant is the parent company of CNBC.
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