Netflix Surges With Record International Growth
International markets such as Australia are bolstering Netflix subscription numbers with the big US content Company shares climbing 13% after announcing 5.9 million new subscribers and a 49% jump in International revenue.
The rise exceeded expectations for adding new subscribers during the third US quarter.
For the quarter, Netflix added 6.96 million new subscribers globally, beating the five million that the company forecast for the period back in July and the 5.18 million analysts surveyed by FactSet predicted. The additions bring Netflix’s total global subscriber count to 137 million.
The streaming Company also reported third-quarter profits of $US403 million, or 89 cents a share, compared with $US129.6 million, or 29 cents a share, a year earlier.
Analysts predicted 68 cents a share in earnings, according to FactSet.
Sales for the quarter rose 36 per cent from a year ago to $US3.91 billion, less than the nearly $US4 billion analysts expected. International streaming revenues jumped 49 per cent to $US1.97 billion, while domestic sales increased 25 per cent to $US1.94 billion.
In the quarter, Netflix gained 5.9 million new subscribers overseas and 1.1 million in the US. The company had forecast gaining 4.35 million international subscribers and 650,000 domestic subscribers during the period.
The company said it anticipates adding another 9.4 million subscribers during the fourth quarter, up 13 per cent compared with the 8.3 million it added a year ago. Analysts predict 8.25 million additional subscribers, according to FactSet.
Netflix said it expects to book content expenses of up to $US8 billion this year. Analysts estimate it will spend up to $US4 billion more on shows and movies this year that will be released in the future, bringing its total cash spend on content to some $US12 billion, dwarfing rivals like Amazon.com and HBO.