Reed Hastings, CEO, Fan Netflix
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Involved Netflix It fell about 1% after Tuesday’s bell after the company reported he won Missed the end result and subscriber additions. The company’s sales slightly exceeded estimates and confirmed speculation that it will expand further into games.
- Earnings per share (EPS): $2.97 versus $3.16 expected, according to a Refinitiv poll of analysts
- he won: $7.34 billion versus $7.32 billion forecast, according to Refinitiv
- Paid Global Net subscribers: 1.54 million vs. 1.75 million expected, according to Facttest
Analysts weren’t expecting a huge quarter when it comes to adding subscribers, as they expect 1.75 million users, according to Factset. The company said it added 1.54 million users to close the quarter with more than 209 million paid memberships.
“The coronavirus has tangled our membership growth (higher growth in 2020, slower growth this year), which is working its way up. We remain focused on improving our services to our members and delivering the best stories from around the world,” the company wrote in a letter to investors.
Netflix said its revenue growth for the quarter came from an 11% increase in average paid streaming subscriptions and an 8% growth in average revenue per subscription.
Most eyes were on what Netflix expects in the third quarter. Netflix said it expects 3.5 million net additions, while investors expected 4.87 million net additions for subscribers in the third quarter, according to data from FactSet. Much of the optimism comes from upcoming Netflix content, with much of it being traced back to the second half of this year and the following.
In the first half of this year, Netflix said it spent $8 billion in cash on content and expects full-year content impairment to be around $12 billion.
“Had we met our expectations, we would have added more than 54 million net paid additions in the past 24 months or 27 million year-over-year over that period, which is consistent with the pre-COVID annual percentage of net additions,” the company said.
The company confirmed that it is also exploding in the gaming arena. Netflix said it views gaming as a new category of content, comparing it to expansion in original films, animations and unrecorded television.
The company said that potential games will be included in Netflix subscriptions at no additional cost. Initially, the focus will be on mobile games.
“We are more excited than ever about our portfolio of movies and TV series and anticipate a long way to further investment and growth in all of our existing content categories, but as we approach a decade in our commitment to original programming, we believe the time is right,” the company said. Mature right to know it.” More about how our members rate our games.
a company Recently Hired Video game director Mike Verdo Facebook social networking site, where he served as Vice President of Augmented Reality and Virtual Reality Content as the company makes a deeper push into gaming.
Netflix is also under pressure from tough comparisons throughout the year as consumers were in the midst of the Covid-19 pandemic last year and spent most of their time online and in need of entertainment.
Netflix said participation per household was lower in the second quarter of last year, but still 17% higher than it was in the second quarter of 2019.
The company stated that “the pandemic has caused extraordinary fluctuations in our growth and distorted year-over-year comparisons with increased acquisitions and per capita participation in the early months of COVID.”
This story is developing. Update for updates.
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