In General Electric’s (GE) second quarter (Q2) earnings announcement this morning, the company revealed profit at its NBC Universal (NBCU) division was up in the quarter and in the first six months of the year compared to the same period in 2006. Revenues in 2007 over both periods declined.
NBCU revenues for the second quarter ending June 30 were down 6% or $233 million to $3.625 billion from $3.858 billion in Q2 2006. However, segment profit was up 2% to $904 million from $882 million in the same quarter in 2006.
“NBC Universal grew segment profit 2% with a strong cable, film, and digital performance. Its current operating improvements coupled with a successful upfront provides a solid foundation for future performance," GE Chairman and CEO Jeff Immelt said in a statement.
For the first six months of the year, NBCU revenues were down 15% to $7.109 billion from $8.34 billion over the same period in 2006. Segment profit for the first six months rose 4% to $1.595 billion from $1.536 billion in the first half of 2006.
On the company’s earnings call, Immelt said that GE was very positive on NBC Universal in the second half of the year and the company provided guidance for continued growth in the third quarter. GE’s Q3 outlook for NBCU is for 0-5% growth in revenues and 5-10% growth in profit.
GE CFO Keith Sherin lauded NBCU’s “tremendous across the board operating improvement” and third straight quarter of positive earnings growth.
Overall, General Electric’s earnings from continuing operations increased 12% from the same quarter in 2006 to $5.4 billion. Earnings per share from continuing operations was up 13% to $0.52 in Q2.