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Netflix Shares Slip After Missed Q4 Revenue, Subs Up

Netflix has post a 27% year-on-year jump in revenue to US$4.19 billion, missing internal estimates for US$4.20 billion, and Wall Street forecasts for US$4.21 billion.

Despite beating subscriber and earning estimates, investors remained unimpressed with shares slipping ~3% in after trading following the report.

During Q4, the streaming giant added 8.84 million paid streaming subscribers – below internal estimates for 8.9 million, but beating consensus forecasts for 8.2 million.

For the year ending December 31, Netflix notched a total of 139 million global subscribers.

Driven by an onslaught of new titles, profit slipped to $US134 million [US$0.30/share], down $US186 million [US$0.41/share] last year.

Paid subscription growth stemmed from international customers, particularly in developing countries – exacerbated by increased foreign content (e.g. Spanish film ‘Roma’).

In Q4, Netflix added 7.3 million international users, a notable 42% increase. Domestic subscriber growth climbed 2%.

The news comes after Netflix announced a hike in subscription prices, with its most popular plan jumping from US$11/month to US$13/month. It follows a surge in streaming services, with Disney preparing to launch its own platform soon.

Concerning Q1 outlook, Netflix expects to add another 8.9 million subscribers.

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