Tags: Netflix | subscriber | earnings | China

Netflix Soars on Subscriber Growth as Profits Beat Forecasts

Netflix Soars on Subscriber Growth as Profits Beat Forecasts

(Source: Netflix website)

Monday, 17 October 2016 04:37 PM

Netflix shares popped as much as 20 percent in after-hours trading Monday, after the streamer posted better-than-expected earnings and reeled in 900,000 more international customers than previously forecast for the third quarter of 2016.

The company reported total revenue of $2.29 billion and earnings of 12 cents per share. Wall Street analysts had expected Netflix to post revenue of $2.28 billion and EPS of 6 cents.

Netflix said it added 3.57 million new streaming subscribers, including 3.2 million overseas and 370,000 in the U.S. When it released second-quarter earnings, Netflix had forecast adding 2.6 million streaming subs overall — 300,000 in the U.S. and 2.3 million internationally.

The company's global streaming revenue totaled $2.2 billion, of which 40% was generated outside the U.S. Operating income was $106 million (versus Netflix's prior $64 million estimate) while net income was $52 million (vs. forecast of $22 million).

Netflix is continuing to double down on originals. At an investor conference last month, CFO David Wells said Netflix was shifting its content spending with the aim of having 50% of the TV shows and movies on its streaming service be original productions over the next few years.

Also Monday, Netflix disclosed that — for the time being — it is no longer looking to launch its own branded service in China, citing regulatory challenges.

 

© 2019 Thomson/Reuters. All rights reserved.

   
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Netflix shares popped as much as 20 percent in after-hours trading Monday, after the streamer posted better-than-expected earnings and reeled in 900,000 more international customers than previously forecast for the third quarter of 2016.
Netflix, subscriber, earnings, China
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2016-37-17
Monday, 17 October 2016 04:37 PM
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