Netflix: falls far short of Q2 subscriber consensus
(CercleFinance.com) - In after-hours trading in the United States, the Netflix share plunged 11% with disappointing subscriber recruitment figures.
This rekindles concerns as to competition in the video streaming market.
While the American on-demand video giant continues to see strong growth, with turnover up 26% in the second quarter (Q2) to 4.9 billion dollars, as anticipated by the group, which now forecasts 5.2 billion in Q3, net profits dipped 29.4% to 271 million dollars, or 0.60 dollars per share, a little over consensus.
Yet the five million (net) paying subscribers that the group expected to win in Q2 (consensus was approximately 5.3 million) were not forthcoming, with only 2.7 million new adds, representing a total of 151.6 million subscribers. Netflix expects to add seven million in Q3.
An analyst firm comments that what analysts fear is that subscribers, especially those who subscribed to the first prices, will turn away from Netflix tempted by aggressive offers from competitors over the next 18 months. The group will also lose the broadcast of several emblematic series such as 'Friends', adds the analyst.
Copyright (c) 2019 CercleFinance.com. All rights reserved.
This rekindles concerns as to competition in the video streaming market.
While the American on-demand video giant continues to see strong growth, with turnover up 26% in the second quarter (Q2) to 4.9 billion dollars, as anticipated by the group, which now forecasts 5.2 billion in Q3, net profits dipped 29.4% to 271 million dollars, or 0.60 dollars per share, a little over consensus.
Yet the five million (net) paying subscribers that the group expected to win in Q2 (consensus was approximately 5.3 million) were not forthcoming, with only 2.7 million new adds, representing a total of 151.6 million subscribers. Netflix expects to add seven million in Q3.
An analyst firm comments that what analysts fear is that subscribers, especially those who subscribed to the first prices, will turn away from Netflix tempted by aggressive offers from competitors over the next 18 months. The group will also lose the broadcast of several emblematic series such as 'Friends', adds the analyst.
Copyright (c) 2019 CercleFinance.com. All rights reserved.