Netflix anticipates subscriber growth in the third quarter, the title climbs | Photo credits: Sipa
by Lisa Richwine
LOS ANGELES (Reuters) – Netflix on Tuesday reported a loss of 970,000 subscribers in the April-June period, averting the worst-case scenario the group feared, and said it expected its subscriber numbers to pick up again. the increase in the current quarter.
The online video giant’s stock rose 7% in post-closing trading on Wall Street, after tumbling more than 60% since the start of the year on fears over its growth.
Netflix has indicated that it will offer an offer with advertisements next year and has also warned that the rise in the dollar is impacting revenues made via subscriptions abroad.
In April, the group said it expected to lose two million customers during the quarter, shocking Wall Street and fueling questions about its long-term prospects.
The decline in the number of subscribers was less significant than expected, and Netflix now estimates that it will record the arrival of one million additional customers over the July-September period. That’s lower than Wall Street’s expectations of 1.84 million subscribers in the third quarter, according to Refinitiv data.
After years of meteoric growth, Netflix has begun to suffer from competition from Walt Disney and Apple, among others, who have invested heavily in their streaming platforms. However, it remains the world leader in the sector with approximately 221 million paying subscribers.
Netflix reported earnings per share of $3.20 for the April-June period.
(Report Lisa Richwine; French version Jean Terzian)