Netflix subscriber rises, pushes stock to a record high

Netflix’s supporter numbers increased by 5.2 million in the three months closed June 30, just about 63 percent in front of its forecasts, making shares hop as much as 9 percent in after-hours trading and hit a record high.

The Netflix service had anticipated adding 3.2 million subscribers in the period, yet said it had “underestimated the popularity of [its] strong slate of content”. Of those new subscribers, 1.1 million were in the US, and the rest of the 4.1m were worldwide subscribers.

The greater part of its membership base is currently international, and Netflix expects its first ever yearly contribution profit from the international portion this year, it said.

The second quarter record comes seven days after 27 of Netflix’s unique projects got nominated in the Television Academy awards, including 91 Emmy nominations.

Netflix said this was almost twofold a year ago’s count. Among its films that have demonstrated popularity are Master of None, The Crown and Stranger Things, all of which were named as best series contenders.

The group said the web “may not have been great for the music business due to piracy”, yet said it had been “incredible for growing the video entertainment business around the world”.

Similarly as it “reinvented” the TV business, Netflix said it would “reinvigorate the film business”, declaring plans to show 40 highlight movies this year, going from “big budget popcorn films to grassroots independent cinema”.

In the three-month time frame, income grew 32 percent year on year to $2.79bn (£2.14bn), however, weakened profit per share plunged from the earlier quarter to $0.15 from $0.40, because of the timing of film releases. This was in accordance with its forecasts.

Netflix said its second from the last quarter guidance assumed “much of this momentum will continue”, however, said it was “cognizant of the lessons of prior quarters when we over-forecasted, and there was lumpiness in net adds, likely due to demand being pulled forward”.