GE's NBC Sees Pre-Tax Earnings Up 15 Pct.

Reuters ^ | June 27, 2002

[jae471]

Thursday June 27, 9:28 am Eastern Time

Reuters Business Report
GE's NBC Sees Pre-Tax Earnings Up 15 Pct.

BOSTON (Reuters) - NBC Television, owned by General Electric Co. (NYSE:GE - News), on Thursday said it expects pre-tax earnings to surge 15 percent to $1.6 billion this year as the network capitalizes on top-ranked shows such as "Friends," which are driving ad sales at its stations.

NBC executives gave the outlook during a presentation to analysts. They also said they expected pre-tax earnings of up to $1.9 billion in 2003.

Conglomerate GE was expected to tell analysts during the presentation its second-quarter earnings are on track. Analysts are looking for GE to earn 43 cents to 46 cents a share, according to Thomson Financial/First Call.

NBC stations are expected to deliver pre-tax earnings growth of 25 percent in 2002, up from $550 million in 2001, according to NBC's slide show presentation.

The network cited local ad sales, improved ratings and its $2.7 billion acquisition of Telemundo Communications Group Inc., which was the largest in NBC history.

The soft spot at NBC is cable television, whose outlook calls for flat pre-tax earnings of $360 million. NBC said it is reinvesting in MSNBC and CNBC to reinvigorate their performance.

Despite the flat outlook, NBC executives said cable's performance is measured against the worst ad sales market in 20 years.

NBC news, whose top anchor is Tom Brokaw, is expected to produce pre-tax earnings of $240 million to $260 million in 2002.

[kezekiel]

Somebody needs to check and make sure that NBC isn't booking Katie Couric's salary as an asset.