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Netflix adds 4 mln customers in Q4, plans Europe expansion
2014-01-23 08:42:00| Telecompaper Headlines
(Telecompaper) Netfix reported better-than-expected results for the fourth quarter, adding 3.85 million new customers for a total of over 44 million worldwide at year-end. The online video service added 2.33 million customers in the US, better than its outlook of 2.01 million, for a total base of 33.42 million. In international markets, Netflix added 1.74 million for a total 10.93 million, also better than forecast. Revenues, including DVD rentals, rose to USD 1.175 billion from USD 945 million a year ago. Net profit was also better than expected and jumped to USD 48 million or USD 0.79 per share, from USD 8 million or 0.13 per share a year earlier. Free cash flow was a positive USD 5 million. Netflix forecast slightly slower customer growth in Q1, with net additions of 2.25 million in the US and 1.60 million abroad. Net profit and EPS are expected little changed from Q4. The company confirmed it's testing new subscription formats offering customers a choice of streaming on just one or three devices, compared to the standard four currently. It also expects to soon start distribution with a smaller US TV provider, after similar deals in the UK, Denmark and Sweden, where it said it has had positive reception. In addition, Netflix said it's planning a "substantial European expansion" later this year. A long-term bond issue of USD 400 million is planned for Q1 to help fund the expansion plans and commission new content.
Tags: europe
plans
customers
expansion
Category:Telecommunications