Wellpoint Health Networks Inc., a Woodland Hills managed-care company, said its profit in the third quarter that ended Sept. 30 was $45 million, down 13% from $51.8 million in the same quarter a year ago.
Revenues for the third quarter increased 42% to $1.1 billion from $772 million.
For the first nine months of this year, Wellpoint's profit was $155 million, down 7% from $167 million last year. Revenues for the first nine months were $3 billion, up 30% from $2.3 billion in the corresponding period last year.
The company said the cost of higher interest and lower investment returns as a result of its recapitalization in May cut into profits in the first nine months. The recapitalization was the result of the conversion of Blue Cross of California, its principal shareholder, into a for-profit company.