Shares Of Netflix Increase With Increase In Profits

Shares Of Netflix Increase With Increase In Profits

Third quarter profits of Netflix increased again as the number of domestic and international customers increased. However, the company reminded investors that despite the increase in the number of subscribers, it is advisable to keep things in perspective.

David Wells and Reed Hastings, chief financial officer and CEO respectively, indicated that despite the volatile movements in the stock price of the company since its IPO in 2002, the number of subscribers has gradually increased every year. The company aims to overlook the volatility in the price of the stock of the company.

An increase of around ten percent was noted in the shares of Netflix after projected profit for the present quarter surpassed expectations.

The second quarter saw the company adding 1.20 million new streaming clients in the US. Around 30.5 to 31.3 million subscribers were expected for the third quarter. The original series of the company was expected to appeal to new customers and increase the subscriber base of the company.

On the other hand, international subscribers increased to 9.19 million, which surpassed July projections of 9 million subscribers.

The company is using domestic profits to increase its international exposure. The company aims to increase awareness in the international market since the US market may reach the saturation point in the future.

The company projects around 33.5 million customers in the US and 10.9 million international subscribers in the fourth quarter. Hastings added that the company may eventually have around 90 million customers in the US. The company is also projecting around $0.73 earnings per share for investors in the current quarter.

Profit of the company is currently at $31.8 million or $0.52 per share. Revenue also increased to $1.11 billion or by 22 percent.

The result was better than what analysts on Wall Street expected. Revenue of Netflix was also slightly similar to expectations of analysts.

Posted by James Fried on Wednesday October 23 2013, 3:02 AM EDT. Ref: CNET. Link. All trademarks acknowledged. Filed under Featured News, Finance. Comments and Trackbacks closed. Follow responses: RSS 2.0