Netflix shares leap after subscriber surge

October 17, 2018
23 Views



Shares in online streaming service Netflix have risen 14% in after-hours trading after it reported its subscribers had increased by seven million.

The figures covering the July to September period took the company’s subscriber base to 137 million and reassured investors worried the company was facing a slowdown in its growth surge.

Net profit for the quarter more than tripled compared to the same period a year ago, from $130m to $403m, while revenues were up by 34% to $4bn.

Netflix is behind shows such as The Crown and Orange Is The New Black.

Its latest subscriber numbers were about a third higher than Wall Street had been predicting and helped to boost the stock after it had fallen short of expectations in the previous quarter.

The record number of additions in the latest period confirmed its rank as by far the world’s biggest online subscription video service.

Jim Nail, analyst at Forrester Research, said the latest figures suggested that the second quarter result had been an “aberration, likely the results of a somewhat low volume of new content”.

Netflix is investing more than $8bn in entertainment programming this year to lure new customers around the world.

It has been borrowing heavily to fund its rapid growth, issuing $7.5bn of bonds in less than three years – a strategy that could become more costly in a rising interest environment.

At the same time it faces competition from the likes of Amazon and Disney.

Sky plc, the owner of Sky News, earlier this year struck a partnership deal with Netflix.



Source link

You may be interested

Melania Trump news: First Lady unveils BIG ‘surprise’ at White House in elegant dress
Fashion
shares3 views
Fashion
shares3 views

Melania Trump news: First Lady unveils BIG ‘surprise’ at White House in elegant dress

admin - Nov 14, 2018

[ad_1] Melania Trump took to Instagram and Twitter this week, as she gave her 2.3 million Instagram followers a glimpse…

Meghan Markle vs Kate Middleton: Royals in HUGE earrings & updos at Charles' birthday
Fashion
shares2 views
Fashion
shares2 views

Meghan Markle vs Kate Middleton: Royals in HUGE earrings & updos at Charles' birthday

admin - Nov 14, 2018

[ad_1] Meghan Markle and Kate Middleton are often considered to be style icons, with many people from across the globe…

Fantastic Beasts 2: Does Grindewald DIE at the end? 'Heartbreaking death scene' revealed
Movies
shares3 views
Movies
shares3 views

Fantastic Beasts 2: Does Grindewald DIE at the end? 'Heartbreaking death scene' revealed

admin - Nov 14, 2018

[ad_1] Death has always hung heavily over the Potterverse. Even in the earliest and most kiddy-friendly Harry Potter fims, the…

Leave a Comment