News

NBCi Numbers Show Ugly Revenue Drop

2/18/2001 7:00 PM Eastern

NEW YORK -The true severity of the Internet-advertising downturn became apparent last week when NBC Interactive
reported its first-quarter 2001 revenue would drop to $16 million from the $31 million it generated in fourth-quarter 2000.

NBCi executives estimated that advertising would rebound over the course of the year and reach $100 million for calendar year 2001, below the $122.9 million in revenue NBC reported in 2000.

The company cut staff from 500 to 400 employees in its quest to reach break-even by fourth-quarter 2000 or first-quarter 2001. NBCi generates 85 percent to 90 percent of its revenue from advertising and the remainder from electronic commerce.

In fourth-quarter 2000, NBCi lost $46.9 million, compared to $49.8 million in the year-earlier period.

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