GE: Big NBC profits ahead

Bravo, Telemundo buys boost net's forecast

By MEREDITH AMDUR

Immelt

General Electric CEO Jeff Immelt says NBC will be one of the jewels in the industrial conglom's vast crown next year, with Peacock profits set to jump as much as 20% next year thanks to new acquisitions and advertising price increases.

Speaking to investors at an otherwise uneventful meeting Tuesday, Immelt re-affirmed the company's earnings projections and outlined major operating strategies for the new year.

Thanks to the recent acquisition of Bravo and Spanish lingo net Telemundo, NBC is forecast to show operating profits of between $1.85 billion and $1.95 billion in 2003, on revenues up 5% to $6.7 billion. Part of that gain is also thanks to ad pricing increases and the net's dominant standing in the ratings categories that translate to advertising revenue (primarily adults 18-49).

Peacock says fourth-quarter scatter pricing has been strong, with prices up 17%.

Immelt said that he wants to significantly expand in the Hispanic TV market, building on its purchase of Telemundo last April. NBC anticipates healthy increase in upfront spending in 2003 and bottom-line contributions from movie channel Bravo.

GE, a bellwether for the U.S. economy, echoed the recent caution of similarly sized corporate congloms, noting that there was still little spark of major economic improvements on the horizon.

Overall, GE is expected to generate revenues of $133 billion next year.