NBC Internet, Inc. (Nasdaq: NBCI) was down 8 7/8 to 15 3/4 in morning trading Tuesday after the Internet affiliate of General Electric Co.’s NBC network warned of lower revenue and earnings for the rest of the year.
The company also announced plans to put all its consumer properties, including Snap.com and Xoom.com, into a single portal, expected to launch this fall, and to concentrate on adding new users through advertising and direct marketing.
“We will focus on a time-honored business model — acquiring members at a cost below their lifetime value,” said Chief Executive Officer William Lansing.
Revenue and earnings for the fiscal second quarter and the rest of the calendar year will be lower than previously expected because of the revamping, acquisition costs and “a soft dot-com advertising market,” the company said.
NBCi said it has about $700 million in cash and future NBC promotion credits, which will help it through the restructuring. The company said it expects to be profitable, after non-cash expenses, in 2002. NBC holds a 40.3 percent stake in NBCi.