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NBC Universal Profit Down 6%

26 Jan, 2009 By: Erik Gruenwedel

NBC Universal

Despite record sales of more than 100 million DVD and Blu-ray units combined in the fourth quarter, NBC Universal, which includes Universal Studios Home Entertainment, reported a 6% decline in consolidated operating income, to $865 million, based on a 3% drop in revenues to $4.4 billion, according to a regulatory filing.

NBC Universal said strong disc sales of Mamma Mia! (No. 1 in Europe) were not enough to offset weaker-than-expected catalog DVD sales and a “tough” fall market for theatrical releases Changeling, The Express and Role Models, among others. 

Parent General Electric said streaming site Hulu.com (a partnership with News Corp.) was a success, in addition to cable assets Bravo, SciFi, USA Networks, MSNBC (up 37%) and CNBC, up 14%.

It expects the NBC Universal to generate flat to 5% revenue growth in 2009.

GE said it would cut $1 billion in costs in fiscal 2009. The conglomerate said it would reduce its workforce, simplify organizational structuring, eliminate bureaucratic layers and exit non-core and underperforming businesses.

GE said the ongoing recession had resulted in an estimated $2 trillion loss of available institutional credit thereby reducing its liquidity levels.

The company generated its third-highest earnings ($18 billion) on revenue of $183 billion in fiscal 2008.

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