Netflix said Thursday its second-quarter profit grew thanks to new membership signups and price increases, which “had gone well and as expected.”
But the company’s shares declined sharply in after-hours trading as the video streaming company’s forecast for the current quarter fell below Wall Street’s expectations.
Netflix earned US$3.4 billion, or 80 cents per share, in the March-June period. That’s up 9 per cent from US$3.13 billion, or 72 cents per share, in the same period a year earlier.
Revenue grew 13 per cent to US$12.56 billion from US$11.08 billion.
Analysts, on average, were expecting earnings of 79 cents per share on revenue of US$12.58 billion, according to a poll by FactSet.
For the current quarter, Netflix is forecasting revenue growth of about 12 per cent. Analysts are expecting revenue to grow by about 13 per cent, to US$13 billion.
In February, Netflix walked away from its offer to buy Warner Bros. Discovery’s studio and streaming business.
Shares of Netflix fell US$5.33, or 7.2 per cent, to US$69.02 in after-hours trading.
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Barbara Ortutay, The Associated Press
