• by David Goetzl  @dgoetzl, January 23, 2009

NBC Universal generated a slight profit on last summer's popular Beijing Olympics when all numbers were tallied, a company rep said. Using some publicly available figures, an estimate might peg the Olympic profit margin in the 3% range.

The NBCU rep declined to comment on specifics, writing only that "we made a small profit" in an email. In August, NBCU CEO Jeff Zucker said the Olympics would produce a profit, although he declined to cite an amount.

But two months later, Keith Sherin, CFO of NBCU parent General Electric, said that while the Olympics yielded more than $1 billion in revenue in the July-September period, profitability did not follow. "The Olympics were actually a loss in the quarter that you present them," he said, offering no details. At the time, the NBCU rep said the results had to do with "the way revenue is realized ... consistent with past Games"--and "when all is said and done at the end of (2008)," NBCU would post the modest profit.

Looking at the figures available, NBCU has said it pulled in at least $1.025 billion in ad dollars. It no doubt also had some other--although smaller--revenue sources, perhaps including fees from cable and satellite operators for VOD or HD programming.

NBCU paid $894 million in rights fees for the Games, and production costs were reportedly in the $100 million range. NBC affiliates helped offset the rights fees, although not through cash contributions. Instead, NBC obtained spots from the stations to sell, according to a source familiar with the matter.

Using just the $1.025 billion revenue figure and $994 million in expenses, the profit would be $31 million, with a 3% margin. But variables, such as the relationships with cable and satellite providers and affiliates, would likely skew the figures.

It's not possible to calculate intangibles that could indirectly boost the bottom line. The company may be able to leverage the Olympics to drive revenues as part of ad deals that include other properties. Rights to the Olympics can also bolster fees the company receives through long-term contracts with cable and satellite operators. And the Olympics may provide an unmatched promotional platform.

In an August interview with the Financial Times, CEO Zucker spoke about the "halo effect" that the Olympics could bring to NBCU at large.

"The bottom line is we will make a profit," Zucker told CNBC just after the Games, calling them "a great investment for the company--something we're incredibly proud of--a signature event for the company."

NBCU's financial metrics for the Games could affect how aggressively parent General Electric bids for the rights to the 2014 Winter Olympics and 2016 Summer Games. Disney (with ESPN) and News Corp. (with Fox and FX) have been reported as interested bidders.

GE as a company derives some Olympic revenues beyond NBCU's performance--providing the infrastructure to host countries, such as power, lighting, water treatment and transportation.

NBCU aired some 3,600 hours of programming from Beijing across seven networks, NBCOlympics.com and other platforms. Ratings--no doubt helped by Michael Phelps' pursuit of a swimming record--exceeded estimates.

Not necessarily referring to financial performance, GE CFO Keith Sherin has said the Beijing Games were "a tremendous experience ... the whole NBC team did a fantastic job of showing those Games and using all the different avenues we have to highlight that content." In October, GE CEO Jeff Immelt called the Games "a huge success."

GE executives did not mention Olympic results in an earnings call Friday.