WebMD Profit Rises on Higher Advertising Revenue

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 [e-mail]

Subscribe to WSJ: http://online.wsj.com?mod=djnwires