Sub­scribers scream for Net­flix stream

New York Post - - BUSINESS - By ALEXAN­DRA STEIGRAD asteigrad@ny­

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.

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