Earnings: With No Olympics Or King Kong, GE 1Q Profit Rises Slightly

General Electric (NYSE: GE) posted a meager increase in Q1 profits Friday as net earnings rose 1.6 percent to $4.51 billion, or 44 cents per diluted share, from $4.44 billion, or 42 cents per share, for the same period a year earlier. Revenues for the quarter came in at $40.2 billion, up 6 percent. Global revenues of $19.6 billion, up 9 percent.

The quarter’s profit for the NBC Universal unit grew 5.7 percent to $691 million from $654, while revenue fell 22 percent to $3.48 billion from $4.48 billion, though the reason for the imbalance is primarily due to the Olympics broadcasts from 1Q06. During the earnings call, Keith Sherin, GE’s SVP Finance, CFO, said that the Olympics contributed $700 million in revenue last year, according to Seeking Alpha’s transcript. Secondly, Sherin noted that film revenue dropped 26 percent in 1Q07 versus 1Q06, as the company sold 15 million King Kong DVDs. In the most recent quarter, the company sold half as much. Looking ahead on online initiatives, Sherin said the company expects the NBC U digital video venture with News Corp. to be operational by 3Q07. Earnings release | Webcast

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