First Quarter Revenue of Netflix Pushed Up to £2.6bn by New Subscribers

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On Monday, the online streaming giant said that new subscribers of the platform pushed the first-quarter revenue of Netflix above the expectations of the company.

The total number of the new subscribers of Netflix during the quarter came in at 7.4 million as compared with the estimates of only around 6.5 million. It helped boost the revenues to $3.7bn (£2.6bn), which is slightly above the estimates of Thomson Reuters amounting to $3.69bn.

The rise of subscribers represents a year-on-year increase in revenue of 43 percent which is the fastest growth that Netflix has ever experienced in the history of the company.

The operating income of the company rose to $447m, from just $245m during the fourth quarter. The announcement of the said results also sent the shares of Netflix up by 5.93 percent in after-hours trading to 326.05 USD.

The earnings per share of the company came in at 64 cents, in line with the expectations of the consensus.

The increase was buoyed by international subscribers as the company added approximately 5.4 million new subscribers who are from other countries during the first quarter.

The streaming platform has said that it will spend around $7.5bn and $8bn on its content this year in efforts to improve the revenue even further.