(Reuters) – Netflix Inc provide addictive 7 million new streaming subscribers from July to September, a third more than Wall Street had expected, was reassuring investors who bought the company with Facing a slowdown in its rapid growth.
the record number of additions in the third quarter brought Netflix customers based on 137 million worldwide, the world’s largest online subscription video-service confirmed its rank as far at.
Shares already to about 78 percent in this year 14 percent to $394,25 in the pre-commercial and other high-tech shares jumped
the jump in the Subscriber marks a dramatic reversal of the trend three months ago, when Netflix investors sent shares tumbling 14 percent, after it missed Wall Street subscriber growth targets.
“the question was at the end of the 2nd quarter was that Miss an aberration or longer-term skid marks in the industry”, said Forrester Research Analyst Jim nail. “The answer: an aberration, likely the result of slightly lower volume of new content last quarter.”
Netflix results sent shares of alphabet Inc, Facebook Inc and Amazon.com Inc about 1% higher in extended trading. The four form the so-called fishing group of growth companies, which has lost some of its momentum in the last few months after leading gains in the last few years.
high confidence Netflix invests programming more than $8 billion in entertainment this year to lure new customers all over the world. In the third quarter it posted its largest slate TV shows and movies original until today, including new seasons of hits such as “Orange is the New Black” and “BoJack Horseman.”
that has paid off in new subscribers. Wall Street analysts had expected add Netflix streaming approximately 5.2 million customers in the quarter.
the company exceeded forecasts in the United States and international markets. Netflix said it approximately 1.1 million subscribers in the United States, analysts signed estimate by 674.000, according to Refinitiv. The international business nearly 5.9 million subscribers added 4.5 million estimate compared with the average analyst.
in a letter to shareholders, Netflix said it saw “strong growth.” on the whole, in all of our markets including Asia
managers tailored to specific markets shows how “Sacred games” in India, which welcomed identified the company as the key to its expansion.
“we feel we have a long, long runway ahead in India,” Greg Peters, chief product officer, said in a video interview post result.
for the current quarter, Netflix forecast 1.8 million customers in the United States and 7.6 million on international markets add it.
“We want investors assure that we have the same high level of trust in the economy as our investments in the past,” said Netflix in his letter.
competition in the September quarter, Netflix added about 676 hours of original programming in the United States, a 135 percent compared to the previous year analysts Cowen and co.
Borrowing has strong, how rapid growth in TV shows and movies to finance
Netflix. There has been a NET $7.5 billion bonds in less than three years issued, although could bear the cost in a changing economic environment.
“rising interest rates could make ever more vulnerable to higher capital costs Netflix,” said CFRA Research Analyst Tuna Amobi.
at the same time, Netflix faces competition from counter-sunk companies such as Amazon and new streaming services from Walt Disney Co and AT & T Inc, which are expected to end next year.
It said operating margins at the lower end of the range of 10 to 11 percent for the full year 2018 expected
Netflix. It cut its projection negative Cash Flow to closer to $3 billion. The company had previously $3 billion minus $4 billion projected.
Neil Begley, senior analyst at Moody’s investors service estimates that Netflix can spend closer to $9 billion on content in this year, but he said, keep negative free Cash Flow to about $3 billion would not change capital requirements of the company.
“It is probably still the case, which they hold to be you twice in the year the borrowing” he said.
Netflix annual surplus increased to $402,8 million, or 89 cents per share, in the third quarter September 30, from $129.6 million, or 29 cents per share ended up last year. Refinitiv to beat, that analysts average estimate of 68 cents.
overall sales rose to $4 billion, in line with the expectations of analysts of $2.98 billion in the previous year.
reporting of Vibhuti Sharma in Bangalore, Lisa Richwine in Los Angeles; Additional reporting by Kate Duguid in New York; Editing by Peter Henderson, Bill Rigby and our standards of Leslie Eagle