Netflix adds profit after prestige, but investors cool

Jul 23, 2013

The online video group Netflix said Monday profits jumped in the past quarter, giving it some cash after recent Emmy nominations, but the results left investors cold.

Netflix said profits jumped nearly fivefold in the second quarter to $29.5 million, topping most Wall Street forecasts.

But its slumped seven percent in after-hours trade to $243.39, on concerns that its subscriber base is growing more slowly than in the past.

The company added 630,000 new US customers in the quarter, after increasing by over two million in the past two quarters. Netflix said it sees the prospects of more competition and a saturation of the US market.

"We are generating steady growth in members, revenue, and contribution profit," Netflix said in a letter to shareholders.

"Our content mix, streaming and user experiences are all getting better and devices and bandwidth are improving. Countering this, competitors for consumer attention are also all improving, and the risk of US market saturation only grows as we do. Given these competing forces, we are very happy this year to be tracking slightly ahead of prior year in terms of net additions."

Netflix recently broke ground with nine Emmy nominations for its original "House of Cards" series, becoming the first online service to be nominated. But it faces competition from the likes of Amazon, Hulu and others.

Explore further: Netflix gains 630K subscribers as 2Q earnings soar

add to favorites email to friend print save as pdf

Related Stories

Netflix tops 30 million users worldwide

Oct 25, 2012

Netflix said Thursday it now has more than 30 million subscribers worldwide, including some five million outside the United States as the Internet video service pursues a global expansion.

Netflix shares soar as ranks of viewers surge

Apr 23, 2013

Netflix shares jumped 24 percent in after-hours trade on Monday on earnings figures indicating that original programs and other tactics are luring viewers to the streaming Internet video service.

Recommended for you

IBM posts lower 1Q earnings amid hardware slump

51 minutes ago

IBM's first-quarter earnings fell and revenue came in below Wall Street's expectations amid an ongoing decline in its hardware business, one that was exasperated by weaker demand in China and emerging markets.

New US-Spanish firm says targets rich mobile ad market

7 hours ago

Spanish telecoms firm Telefonica and US investment giant Blackstone launched a mobile telephone advertising venture on Wednesday, challenging internet giants such as Google and Facebook in a multi-billion-dollar ...

Technip, Heerema win third giant Angolan oil contract

10 hours ago

The ultra-deep Angolan offshore oil project called Kaombo generated the third huge contract in three days on Wednesday when French group Total picked two firms to carry out underwater engineering worth $3.5 billion.

User comments : 0

More news stories

IBM posts lower 1Q earnings amid hardware slump

IBM's first-quarter earnings fell and revenue came in below Wall Street's expectations amid an ongoing decline in its hardware business, one that was exasperated by weaker demand in China and emerging markets.

Microsoft CEO is driving data-culture mindset

(Phys.org) —Microsoft's future strategy: is all about leveraging data, from different sources, coming together using one cohesive Microsoft architecture. Microsoft CEO Satya Nadella on Tuesday, both in ...

Researchers see hospitalization records as additional tool

Comparing hospitalization records with data reported to local boards of health presents a more accurate way to monitor how well communities track disease outbreaks, according to a paper published April 16 in the journal PLOS ON ...

Ebola virus in Africa outbreak is a new strain

Scientists say that the Ebola (ee-BOH'-lah) virus that has killed scores of people this year in Guinea (GIH'-nee) is a new strain. That means it did not spread there from outbreaks in some other African nations.