Netflix recorded a net profit of 5,408 million dollars, about 4,964 million euros, in 2023, which represents an advance of 20.4% compared to the previous year’s result. Profits have skyrocketed its shares after the market close, with a revaluation of close to 10% after exceeding forecasts.
The company has exceeded 260 million subscribers after adding 13 million in the last quarter of the year, the best number since the pandemic. It is 13% more than at the end of 2022. Doubts about the limitation of shared passwords, new subscription systems with advertising or price increases are dissipated. In 2023 the company earned $33,723 million -30,955 million euros-, 6.7% more than in 2022. “After a couple of roller coaster years, Netflix returned strongly in 2023, showing one of the greatest growth in its history,” said Josh Gilbert, eToro analyst.
The business grows double digits quarter after quarter, the best pace in two years: revenues grew 12.5% ??in the fourth quarter (to 8,833 million dollars) and at the start of this year it expects to reach revenues of 9,240 million , an improvement of 13.2%. “Netflix celebrates an impressive quarter, consolidating its dominance in the streaming war,” says Sergio Ávila, IG analyst. The drivers have been series such as Berlin and The Squid Game: The Challenge, and films such as Leo or Nowhere, among the most viewed.
The company based in Los Gatos, California, is considering new changes in rate policies, with the elimination of its basic service in some countries such as Canada and the United Kingdom. With this, for this year it foresees an improvement in margins due to price increases.
At a global level, after years of mergers between platforms (Disney with Fox or Time Warner and Discovery serve as examples) the company says that the industry will remain in an environment of strong competition, but that it is not interested in entering the game of acquisitions of contents. Despite everything, “we have a lot of room to grow,” he assures in the letter to his shareholders.
