NBC Internet warns of lower earnings, sales
--From AOl. OK, will CNBC highlight this one tomorrow, or today, or ever?-- Cooters
SAN FRANCISCO, June 12 (Reuters) - NBC Internet Inc. <NBCI.O>, the Web-based companion company to the NBC television network, on Monday unveiled a restructuring and warned of low sales and earnings as it copes with slow advertising sales.
Under the restructuring, all of NBC Internet's Web sites and products, including Snap.com, Xoom.com and VideoSeeker, will be combined under a single banner, NBCi.com.
The new, comprehensive site will debut in the Fall, the company said in a statement.
The restructuring, however, coupled with costs of recent acquisitions and low revenues due to a soft advertising market from dot.com companies, will lead NBC Internet to report lower-than-expected revenues and earnings for the second quarter and remainder of year 2000, it said.
NBC Internet was expected to post a net loss of 70 cents per share in the second quarter and a full-year net loss of $2.84 a share, according to a consensus of analysts estimates compiled by industry researcher First Call/Thomson Financial.
NBC Internet said it currently has about $700 million in cash and future NBC TV promotional credits to help the company move forward, and it intends to tighten its cost structure in line with the new revised revenue and earnings estimates.
The company said it expects to become profitable in 2002 after accounting for non-cash expenses.
NBC Internet is about 47 percent owned by NBC, which is wholly-owned by General Electric Co. <GE.N>.
18:19 06-12-00 |
