Released at Mon, 16 October 2017 22:31:48 +0000
For the next quarter, Netflix additional 5.3 million subscribers around the world, compared with Wall Street’s target of 4.5 million, according to FactSet. Netflix forecast 6.3 million additions for the current quarter, just above analysts’ average estimate of 6.25 million, which would bring its global customer base to nearly 115.6 million.
In its quarterly letter to shareholders, Netflix said it would increase its content budget to between $7 billion to $8 billion.
(Reuters) – Netflix Inc added more subscribers than expected across the planet in the next quarter and projected growth in line with Wall Street forecasts, saying it had a head start on rivals as internet television expands globally.
The organization’s net income rose from $ 52 million, or 12 cents per share in the latest quarter, a year before.
“As we move into 2018, we aim to attain steady improvement in international profitability and a growing operating margin as our success in many large markets helps finance investments throughout Asia and the rest of the world,” the letter stated.
Reporting by Aishwarya Venugopal in Bengaluru; Editing by Sriraj Kalluvila and Bill Rigby
The business faces increasing competition from streaming services including Amazon.com’s Prime Video, also moves by traditional media firms. Walt Disney Co decided to yank its movies starting in 2019 and start its offering.Investors have been bullish on the ability to keep signing clients up around the world of Netflix. Netflix recently traded at 101 times expected earnings for the next 12 months, versus Amazon.com Inc in 144 times earnings and Time Warner Inc at 16 times earnings, according to Thomson Reuters data.
They’re up about 64 percent this year.
The company known for first TV shows such as “House of Cards” is spending heavily to produce and acquire content as it races to dominate streaming television in international markets, which currently account for most its subscriber growth.
(The story corrects global customer base forecast in 3rd paragraph to nearly 115.6 million rather than 109 million; error first occurred in update 2)
Netflix’s 5.3 million additional subscribers in the third quarter included 4.45 million in international markets and 850,000 in america. Wall Street had expected 4.5 million overall; 3.69 million abroad and 810,000 in america, according to FactSet.