Business briefs for October 27, 2004

Wednesday, Oct. 27, 2004 | 11:03 a.m.

Profit rises

Anthem Inc., seeking to become the biggest U.S. health insurer by buying WellPoint Health Networks Inc., said third-quarter earnings rose 23 percent on membership growth, and full-year profit will climb more than forecast.

Net income increased to $242.1 million, or $1.70 a share, from $196.5 million, or $1.38, a year earlier, the Indianapolis- based company said in a statement. Revenue rose 13 percent to $4.8 billion from $4.26 billion.

Anthem's plan to more than double in size by buying WellPoint has been blocked by California Insurance Commissioner John Garamendi. While Anthem's lawsuit challenging his decision awaits action in California, Chief Executive Larry Glasscock is signing up new customers. Anthem added 890,000 members in the quarter, an 8 percent rise from a year earlier.

Anthem said the number of people it insures in Nevada continues to increase, but the company does not release numbers on a state basis. Nevada is lumped with Colorado as the Western region.

"From a regional standpoint, we saw significant growth during the quarter," Anthem spokesman Jim Kappel said. "Membership was up 22 percent in the region for the quarter."

Earnings increase

Cox Communications Inc. reported third-quarter earnings of $42 million after it won more subscribers for its Internet-access and cable-TV services.

Net income of 7 cents a share compared with a net loss of $215.1 million, or 35 cents, a year earlier, Atlanta-based Cox said in a statement. Revenue at Cox, the third-biggest U.S. cable company and the main cable operator in Las Vegas, rose 11 percent to $1.62 billion.

Cox Chief Executive Jim Robbins, 62, is picking up subscribers by selling a package that includes cable-TV, phone and Web-access services to compete with satellite-TV operators and phone companies. In August, its parent company said it would take Cox Communications private after the stock fell 20 percent.

Excluding $26.6 million, or 4 cents, in costs related to hurricane damage and a lawsuit, Cox would have earned 11 cents a share.