By Maria Armental
WebMD Health Corp.'s profit rose in the fourth quarter as the
health information publisher reported higher advertising revenue
and a double-digit increase in traffic.
In the current quarter, WebMD expects net income between $8.5
million and $9.5 million on revenue of $141 million to $143 million
and net income of $50.5 million to $59.5 million, or $1.23 to $1.35
a share on $615 million to $635 million in revenue for the
year.
Analysts surveyed by Thomson Reuters expect $8.8 million in net
income and $145 million in revenue for the quarter and $52.3
million in net income, or $1.21 a share, and $634.9 million in
revenue for the year.
Launched in 1998, WebMD took the lead in the burgeoning
"e-health" sector by forging agreements with other companies to
provide medical information or services on its website and
persuading big companies like Microsoft Corp. and News Corp, owner
of The Wall Street Journal, to back the notion of an electronically
streamlined health-care system.
In addition to its namesake site, WebMD's operations include
Medscape, which targets medical professionals, and private portals
developed for employers and health plans.
Last month, WebMD said it planned to launch a video series
hosted by "Good Morning America" co-anchor Robin Roberts to break
into new categories of advertisers.
For the latest period, revenue rose 11% to $162.7 million, with
advertising accounting for $127 million, up nearly 6% form the
year-ago period. WebMD had projected revenue of $152 million to
$162 million.
Meanwhile, WebMD said it reached an average 190 million unique
users a month, generating 3.7 billion page views, up 22% and 17%,
respectively, from the year-ago period.
Overall, WebMD reported a profit of $16.3 million, or 38 cents a
share, compared with $10.8 million, or 25 cents a share, a year
earlier. Net income included a $1.1 million after tax gain related
to the 2009 sale of its plastic-technologies business Porex.
Analysts had expected 32 cents a share.
Shares edged down 0.80% to $41 in recent after-hours
trading.
Through Tuesday's closing, the company's stock had fallen nearly
10% over the past 12 months.
Ann Carrns contributed to this article
Write to Maria Armental at maria.armental@wsj.com
Subscribe to WSJ: http://online.wsj.com?mod=djnwires