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.