Netflix holds its own after the twists in the business model. The company registered a profit of 1,305 million dollars -1,189 million euros- in the first quarter, a decrease of 18% over the same period in 2022. But subscribers, one of the most important metrics in the streaming company, grew at 1.75 million, according to the data revealed this Tuesday at the close of the market.
In total, it already has 232.5 million subscribers, an increase that comes after extending its plan to restrict shared accounts and options with advertising at lower prices to more countries. “We are happy with the results,” he says. The idea is to also bring it to the US in the second quarter.
At first, the shares fell more than 10% in after-market trading, as investors expected a little more improvement in underwriting. They then made up any lost ground as it became clear that their strategy seems to be working and earnings per share are better than market expectations.
Revenues stood at 8,162 million dollars, some 7,440 million euros, 3.6% less. By region, it has gained some 640,000 users in Europe, the Middle East and Africa, another 100,000 in the US, Canada and Australia and has lost 400,000 users in Latin America. The big leap is in Asia, with 1.4 million new subscriptions.
“The quarterly results were mixed, with a drop in subscriber growth and a lower-than-expected profit, but with good news in terms of the effectiveness of the new ad-supported service and the campaign against shared accounts,” says Sergio Ãvila. , from I.G.
Looking ahead, the company acknowledges that after the changes in subscription models, the task of making forecasts is more difficult. In any case, it says it is “on track to meet financial targets for the full year 2023.” In the second quarter, it anticipates a drop of 11% in net profit, to 1,283 million dollars -1,171 million euros-. It’s a smaller gain than expected on Wall Street. “For the second quarter of 2023, we forecast revenues of 8,240 million dollars -7,520 million euros-, 3.4% more,” it was noted.
