Netflix adds subscribers, but fewer than expected

MUMBAI: Netflix reported earnings Monday that beat expectations as it added streaming-video subscribers, though not as many as analysts had expected.

Netflix stock fell more than six per cent after the report.

"The company added 630,000 new subscribers to its US streaming service, bringing the total number of domestic subscribers to 29.8 million. The gain was in the middle of Netflix's own forecast issued in April but fell short of the average expectation from Wall Street analysts of 700,000", Sterne Agee analyst Arvind Bhatia said.

"It's a mixed quarter, not good enough for the stock to move up a bit," Bhatia said.

Internationally, Netflix gained 610,000 new streaming users, for a total of 7.75 million international subscribers.

The stock has soared 183 per cent this year, which set the bar high for second-quarter results.

"The stock was priced for perfection going into the quarter, hence the sell-off," Evercore Partners analyst Alan Gould said.

The May release of comedy Arrested Development generated a "small but noticeable bump in membership," chief executive Reed Hastings and chief financial officer David Wells said in a letter to shareholders.

The company generated buzz from last week's Emmy nominations for "Arrested Development" and an original series, political thriller "House of Cards," the first Internet series to garner Emmy nods in major categories.

Netflix, in its shareholder letter, forecast it will add up to 1.5 million U.S. streaming customers in the current quarter. That guidance "looks like a little light," Gabelli & Co analyst Brett Harriss said.

"Netflix needs to add a substantial amount of subscribers to justify the current valuation," Harriss said.

Net income rose to $29 million, or 49 cents a share, in the second quarter, from $6.2 million, or 11 cents a share, in the same period a year earlier, when the company was spending heavily to push into foreign countries.

Revenue increased to $1.07 billion from $889 million a year ago.

Analysts had expected the streaming-video company to report earnings excluding items of 40 cents a share on $1.07 billion in revenue, according to a consensus estimate from Thomson Reuters.

For the third quarter, the company expects earnings of 30 cents a share to 56 cents a share. The median of that guidance is 43 cents a share; analysts currently expect 45 cents a share.

Latest Reads
TLC firmly establishes itself as a clear leader in lifestyle genre with 24% upswing in ratings

TLC, leading lifestyle channel from Discovery Communications India, soared to the top of Lifestyle genre with a 24% increase in ratings according to the latest BARC data*. TLC secured 8640 impressions ‘000 in week 11 as compared to 6972 impressions ‘000 in Week 10. The upsurge in ratings is...

Television TV Channels Factual & Documentary
Balaji Telefilms appoints Jyoti Deshpande as non-executive additional director

Balaji Telefilms has appointed Jyoti Deshpande as the non-executive additional director. The appointment, which was approved following a circular resolution by its board on 22 March, is in compliance with share subscription agreement entered into between Balaji and Reliance Industries Ltd (RIL) on...

Television TV Channels People
Aaj Tak relaunches 'Seedhi Baat'

MUMBAI: TV Today Network has relaunched its big-ticket Hindi show Seedhi Baat. The show will be hosted by Sweta Singh, news anchor and executive editor of special programming at Aaj Tak. The first episode of the show, which  will air at 8 pm on 24 March, will feature BJP president Amit Shah as the...

Television TV Channels News Broadcasting
Dsport tops BARC ratings with Nidahas Trophy viewership

MUMBAI: Dsport, which launched last year in February, became the top ranked sports channel according to Broadcast Audience Research Council (BARC) all-India data in week 11. Rishtey Cineplex attracted a big chunk of the Hindi-speaking audience while competing with pubcaster DD Sports.

Television TV Channels Sports
Zee TV’s ‘Ishq Subhan Allah’ year’s second highest weekday fiction launch across GECs

Zee TV recently put the spotlight on Triple Talaaq with its new fiction show Ishq Subhan Allah introducing viewers to the turbulent love story of Zara (Eisha Singh) and Kabeer (Adnan Khan) – an Islamic couple dealing with the issue first-hand. Raising pertinent questions about women having a say...

Television TV Channels GECs
&Privé HD’s Unforgettables at 9 property celebrates movies that have left an indelible mark

There are some movies that become a part of your life and you can’t help but watch them over and over again. There are some characters that reveal a hidden element of yourself that results in an instant connection. &Privé HD’s property ‘Unforgettables at 9’ brings such classics every Monday to...

Television TV Channels English Entertainment
Living Foodz raises a Toast to India’s finest restaurants, night

India’s premium lifestyle channel, Living Foodz organized the second edition of Epicurean Guild Awards at an evening which saluted the game changers in India’s fine-dining, nightlife and lifestyle entertainment space. Held on March 22 at Sahara Star, Mumbai, the event was curated by Chef Manu...

Television TV Channels English Entertainment
Zee Anmol regains top Hindi GEC spot across genres

BENGALURU: Zee Entertainment Enterprises Ltd’s (Zeel) free-to-air (FTA) Hindi GEC Zee Anmol has returned to second place in Broadcast Audience Research Council (BARC) list of top 10 channels across genre in week 11 of 2018 (Saturday, 10 March 2018 to Friday, 16 March 2018). The numero uno position...

Television TV Channels Viewership
Emerald Media buys minority stake in Global Sports Commerce

MUMBAI: Emerald Media, the Pan-Asia company backed by global investment firm KKR, has acquired a significant minority stake in sports technology and management company Global Sports Commerce (GSC) through a combination of primary and secondary investments.

Television TV Channels Sports

Latest News

Load More

Sign up for our Newsletter

subscribe for latest stories