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Tuesday 12 December 2017

Netflix hits 65m subscribers as shares shoot up

Kevin Spacey as Frank Underwood in ‘House of Cards’
Kevin Spacey as Frank Underwood in ‘House of Cards’

Netflix added nearly a third more subscribers than expected in the second quarter, sending its shares up 9.4pc as the video streaming service said its investment in original television programs and movies was paying off.

Net subscriber additions rose about 94pc year over year to about 3.3m in the second quarter, beating the company's forecast of 2.5m.

The distributor of "House of Cards" said its new original shows were drawing customers faster than it had forecast.

Netflix also is aggressively expanding around the world, accounting for the bulk of new subscriptions. Its global subscriber base had now grown to more than 65m worldwide. A trend of slowing U.S. growth was halted in the quarter as the number of new U.S. customers rose about 50 percent higher than the company had forecast.

The company by the end of 2016 plans to reach 200 countries, including China, where it said it was "continuing to explore options."

The company, which approved a 7-for-1 stock split in June, added 2.4 million customers in international markets in the quarter, taking its total to more than 65 million users worldwide.

Revenue jumped 22.7 percent to $1.64 billion in the second quarter ended June 30, from $1.34 billion a year earlier, the company said.

The company's net income fell to $26.3 million, or 6 cents per share, from $71 million, or 16 cents per share a year earlier, hit by the costs of its overseas expansion.

Netflix also said it supported Charter Communications' proposal to buy rival cable operator Time Warner Cable, after Charter committed to open and free interconnection across its network.


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