tech news

Netflix subscriber growth misses estimates


(Reuters) – Netflix Inc missed Wall Street forecasts for U.S. and international subscribers, saying it had overestimated the pace of new additions for April through June but remained confident in long-term growth.

FILE PHOTO: The Netflix logo is pictured on a television in this illustration photograph taken in Encinitas, California, U.S., January 18, 2017. REUTERS/Mike Blake/File Photo

The company’s shares, which have more than doubled this year, fell 14 percent to $346.71 after the bell on Monday.

The company added 670,000 subscribers in the United States, well below analysts’ estimates of 1.19 million, according to Thomson Reuters I/B/E/S.

Netflix displays a prop from “Arrested Development” at an exhibition promoting the company’s shows for Emmy consideration in Los Angeles, California, U.S., May 6, 2018. Picture taken May 6, 2018. REUTERS/Lisa Richwine

Netflix signed up 4.47 million subscribers internationally, while analysts were expecting 4.97 million.

Netflix, which faces competition from Amazon.com’s Prime Video service and Hulu, has been investing heavily to bolster its original content across different languages and strengthen its international presence.

Net income rose to $384.3 million, or 85 cents per share, in the quarter ended June 30 from $65.6 million, or 15 cents per share, a year earlier.

Total revenue rose 40.2 percent to $3.91 billion. Analysts had expected revenue of $3.94 billion.

(Graphic: Netflix subscriber additions data – tmsnrt.rs/2Niv0sg)

Reporting by Vibhuti Sharma in Bengaluru; Editing by Anil D’Silva



READ SOURCE

Leave a Reply

This website uses cookies. By continuing to use this site, you accept our use of cookies.  Learn more