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Netflix to expand further after passing 50 mln customers

2014-07-22 08:55:00| Telecompaper Headlines

(Telecompaper) Netflix reported second-quarter results slightly better than expected, while announcing the milestone of 50 million subscribers for its streaming video service. The group's streaming revenues rose to USD 1.146 billion from USD 837 million a year ago, as the number of subscribers hit 50.05 million at the end of June. Net profit more than doubled to USD 71 million or USD 1.15 per share, better than the company's outlook of USD 69 million and EPS of USD 1.12. Netflix's growth was driven by its international activities, with the net addition of 1.12 million new streaming customers for a total 13.80 million outside the US. The US base increased by 0.57 million to 36.24 million at the end of June. The rapid growth abroad reduced the loss from the international activities to USD 15.3 million in Q2 and helped convince Netflix to continue the expansion. The company confirmed it will launch in Germany, France, Austria, Switzerland, Belgium and Luxembourg in September. The cost of the launch will swell the international loss to an estimated USD 42 million in Q3. Netflix forecast a net profit for the third quarter of around USD 55 million and revenues at USD 1.224 billion.

Tags: customers expand passing mln

Category:Telecommunications

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