Subscribers scream for Netflix stream
Netflix will not be stopped. The video-streamer on Monday reported it added more subscribers in the first quarter than expected — impressing investors, who pushed shares of the company up 6 percent in after-hours trading.
The Los Gatos, Calif., company, which has been pumping boatloads of cash into original programming, beat growth expectations in the quarter as it debuted “Altered Carbon” and “The End of the F***ing World” — in addition to dropping the latest season of “Marvel’s Jessica Jones” and “Grace and Frankie.”
Led by Chief Executive Reed Hastings, Netflix made news in February when it poached hit-making producer, writer and director Ryan Murphy from FX for around $300 million. That followed similar partner- ships with Shonda Rhimes, Shawn Levy and Jenji Kohan.
With its subscriber base racing past 125 million, Netflix will spend about $8 billion on content this year, it said.
In the quarter, Netflix added 7.4 million, beating the 6.5 million that were expected, according to FactSet. Net income in the quarter rose 62.9 percent, to $290.1 million, or 64 cents a share. Revenue rose 40.3 percent, to $3.7 billion, the company said.
Analysts expected earnings per share of 64 cents on revenue of $3.69 billion.
In the second quarter, Netflix anticipates adding 6.2 million subscribers, 1.2 million of whom will come from the US market.
Netflix shares closed regular trading hours on Monday at $307.78, down 1.2 percent — before adding big gains after its post-market results were announced.