NBC Universal’s profits dragged down by local stations
Profit at General Electric’s NBC Universal unit fell 6% to $865 million, as a strong performance at the company’s cable networks was offset by problems at its broadcast stations, the company reported Friday.
NBC Universal revenues dropped to 3% to $4.4 billion in the quarter.
For the full year, NBC Universal’s profit rose 1% to $3.1 billion as its revenues rose 10% to $17 billion.
On Friday morning’s conference call with analysts, GE Vice Chairman and CFO Keith Sherin said NBC Universal’s performance was in line with expectations.
“Cable had another great quarter,” Mr. Sherin said, with revenues up 11% and operating profit up 22%.
Operating profit plummeted 50% in NBC Universal’s broadcast segment.
Mr. Sherin said the network and TV production operations “had a strong quarter with positive profit growth,” but that local stations “had a tough quarter,” with revenues down 25% and operating profit down 55%.
The declines were “driven by the economy and you’re seeing that in local advertising,” he said.