Netflix, Inc (NASDAQ:NFLX) nets profits with more online customers
In the Q2, Netflix, Inc (NASDAQ:NFLX) announced a muscle-backed profit and stated that it continues to attract new customers. The company has attributed this positive change to its decision of updating its programming-strategy. The California-based NFLX said that in the 3 months right through June, it has added 630,000 additional internet customers in the United States. This figure however, did not meet analysts’ projections.
The company closed the quarter with 28.6M paying customers in the U.S. The average analyst estimate had been 29.9M domestic online customers. As per the statement released by the company during Q3, NFLX stated that it projects that it will add 690,000-1.49M new streaming customers across America. The net income for the Q2 catapulted almost 5 times to $29.5M or 49 cents/share in comparison with the $6.16M or 11cents /share that it stood at a year ago. Analysts had projected earnings of 40 cents/share.
NFLX charges $7.99 per month for the online services it provides. The company said that there had been a 20% rise in sales to $1.07 which was on par with analyst estimates. Last year sales stood at $889.2M
Original programming at fault
Reed Hastings, Netflix’s Chief Executive attributed the not-up-to-the-mark increase in subscriber levels in the quarter, to the original programming that the company followed. This included “House of Cards” and “Arrested Development”. NFLX stock kept dropping a day after its latest earnings report had been made public. Nevertheless, the levels are still above what they stood at, a year ago.
Sunny-side up doesn’t impress investors
Netflix, Inc (NASDAQ:NFLX) conducted its investor call on Monday last. At the call, the company’s management stated that on an average, households had been watching Netflix for 90mins per day. Despite this, investors posed several questions in connection with NFLX’s original series and content spending. The company will have to work harder to get back investor’s confidence.