NBC BOOSTS GE'S PROFITS

TV Network Benefitted From Strong Upfront, Scatter Market

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NEW YORK (AdAge.com) -- A strong performance by the NBC TV network helped parent General Electric Co. post increased revenue and net income during the second quarter.

The company reported 4% growth in revenue to $33.2 billion, and a 14% increase in net income to $4.43 billion in over

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the same period in 2001. For the quarter, NBC's revenue increased 8.5% to $1.99 billion and operating profits rose 11% to $545 million.

The TV unit benefitted from higher prices for ads sold in the upfront and scatter markets, said Keith Sherin, GE's chief financial officer.

He noted second-quarter scatter prices ran approximately 7% above the upfront and third-quarter scatter prices are 14% higher. Scatter sales are sales made during the TV season.

Mr. Sherin forecast NBC's revenue will increase 25% to 30% in the third quarter and operating profit will grow 50% to 60% year over year, thanks the just-closed acquisition of the Telemundo network, the syndication sales of NBC's Will & Grace and the effect of Sept. 11's disruption on year-over-year comparisons.

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