Netflix adds 7m subs in Q3
October 17, 2018
Surpassing Wall Street expectations, streaming giant Netflix added 6.96 million new members in the last three months – 1.09 million in the US and 5.87 million internationally – giving it a total of 137 million subscribers.
Netflix added it is expecting another 9.4 million subscribers during the fourth quarter – a 13 per cent increase year on year.
The company reported third-quarter profits of $403 million (€348.4m), compared with $129.6 million a year earlier.
Shares jumped 14 per cent in after hours trading following the publishing of the Q3 numbers. Netflix shares have risen 78 per cent and is now valued at more than $153 billion, more than 21st Century Fox, and homing in on Disney.
“Our broad slate of original programming helped drive a solid quarter of growth with streaming revenue increasing 36 per cent year over year and global membership surpassing 130 million paid and 137 million total. We’re thrilled to be growing internet entertainment across the globe,” the company said in a statement.
“We’ve come a long way in the five years since launching original content on Netflix. In addition to our commercial success, we’re ecstatic when the creators we work with are recognised for their inspiring work. This year, Netflix originals led with 112 Emmy nominations spanning 40 of our shows, docs and specials across nearly every category and we’re humbled to have tied HBO with the most number of Emmy wins with 23,” it added.
Commenting on the results, industry analyst Paolo Pescatore said: “Overall, this was a strong quarter for the company. Normal service has been restored. This was a key quarter for the company following the challenges of the prior one which was a one off and largely down to seasonality. More importantly strong growth in its overseas market is encouraging. This bodes well as the company typically performs well over the next couple of quarters.”
“All of its rivals are now making huge bets on video and it cannot afford to be left behind. It now needs to rely more than ever on its extensive cable and telco relationships, ” Pescatore concluded.