Saturday, 17 November, 2018

Netflix Soars After Blistering Subscriber Growth Restores Faith

Netflix Posts 207% Earnings Growth CSX Beats Both Netflix and CSX Corp. well outperformed expectations for their respective Q3 2018
Stacy Diaz | 17 October, 2018, 09:56

Netflix is among the first of the major U.S. tech firms to report earnings. Analysts were looking for $0.68 a share. In the USA, where Netflix can now claim nearly half of households as users, the company expects to add 1.8 million new customers this quarter, bringing the domestic total to 60.3 million.

The better-than-expected subscriber additions, combined with some one-time accounting-related benefits, helped Netflix handily beat Wall Street profit targets.

Today Netflix reported that they added 6.96 million new users in the third quarter of 2018. In overseas markets, which now accounts for 57% of Netflix' total subscription base, Netflix saw 5.8 million net new subscribers, above the 4.5 million estimate.

The world's largest paid online TV network added far more subscribers than analysts forecast in the third quarter and issued an upbeat outlook for the current three months, rebounding from a slowdown earlier this year.

Netflix's stock was up $41.72, or 12%, to $388.12 a share in after-hours trading on Tuesday.

Netflix had become a hot ticket among tech stocks after cementing its place among the FANGs, a group of lucrative investments including Facebook, Amazon and Google, but it has found itself in an increasingly crowded streaming market. Sales jumped 34% to $4 billion and worldwide streaming revenues jumped 49% to $1.97 billion with revenues in the United States increased 25% to $1.94 billion. Netflix said it signed up roughly 1.1 million subscribers in the United States, above analysts' estimate of 674,000, according to Refinitiv. But no one grew their Instagram audience as much as "Stranger Things" star Millie Bobby Brown, who apparently had close to no fans on the platform before the debut of the show, and now has 17.6 million Instagram followers. In the same quarter previous year, it posted a profit of 41 cents a share.

Netflix posted Tuesday third-quarter earnings and subscriber growth that topped expectations. "Even the USA number was better than I thought it would be".

Netflix has upended the economics of pay TV by offering customers thousands of programmes on-demand for a monthly fee that's a fraction of the cost of a multichannel cable or satellite package. In the fourth quarter past year, Netflix saw sales of $3.29 billion.

The company also singled out "To All the Boys I've Loved Before" as one of its "most viewed original films ever with strong repeat viewing". Netflix doesn't break out its customers by market, with the exception of the USA, though most analysts agree the UK, Brazil, Canada and Mexico rank among the company's largest.