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Netflix streaming service opened its books for inspection Tuesday after the US market closed.
The pandemic crown and successes from series like “Tiger King” have helped the online video service Netflix reach its strongest point yet. In the three months to the end of March, the number of paid subscriptions shot up worldwide by 15.8 million, as the streaming market leader announced after the US stock market on Tuesday. USA It closed in Los Gatos. Netflix posted the quarter with its highest number of customers to date and far exceeded both its forecast and the expectations of Wall Street analysts.
At the end of the quarter, Netflix had nearly 183 million paid memberships. Growth had increased rapidly in March when people in more and more countries were instructed to stay home due to the corona virus, the letter to shareholders said. It was also financially fluid: Revenue increased about 28 percent on-year to $ 5.8 billion. Profit more than doubled to $ 709 million.
While many companies are seriously suffering from the crown crisis, Netflix benefits from the fact that many people barely get out of the virus. However, the company warned its investors that the boom was only temporary: with the end of the pandemic, growth should slow again. In the second half of the year, Netflix expects subscriptions to drop year after year. The video service expects 7.5 million new customers in the current quarter.
With the “Tiger King” series, which started in March, Netflix had great viral success. The bizarre documentary about eccentric big cat lovers like tigers and lions was viewed in the first four weeks after launch from 64 million user accounts. Other productions like the movie “Spenser Confidential” or the new seasons of the crime drama “Ozark” and the Spanish series “Money Heist” also got off to a good start, according to Netflfix.
The group, founded in 1997 in Los Gatos, California, is on one of the biggest waves of success in its corporate history. On the stock market, Netflix shares have already risen more than 36 percent this year, following a general price drop, and recently hit new all-time highs. With a market value of just under $ 190 billion, even the American entertainment giant Walt Disney was overhauled, which was worth twice as much in winter as Netflix.
Experts believe that the flight from above will continue somewhat. The “stay home” era caused by the virus outbreak should ensure Netflix further extends its leadership in the streaming market, says Credit Suisse (CS) analyst Brian Russo. Competition is not yet global enough to benefit from the trend to the same extent.
Big rival Disney + is also booming: The week before, it announced that it had 50 million paying subscribers just five months after launch. Disney attracts, in addition to popular productions such as the series “Star Wars” “The Mandalorian”, also with favorable promotional prices.
The gap with Netflix should remain large for now. Because while the market leader has been in business for over ten years and in more than 190 countries worldwide, Disney + ‘s international expansion has just begun. Unlike Disney, Netflix has yet to operate any other business areas, such as theme parks or cruise ships, that are severely affected by the crown crisis.
Netflix Will Record Record After Record Quarter, And Again
After the exchange, Netflix’s share temporarily increased to 12 percent on Tuesday, reaching a new record. This Wednesday in Nasdaq trading, the price temporarily fell 1.73 percent to $ 426.00.
The crown pandemic and series hits like “Tiger King” had helped the online video service reach its strongest point yet. In the three months to the end of March, the number of paid subscriptions skyrocketed to 15.8 million worldwide. It was the quarter with the most customer traffic and far exceeded both its own forecast and the expectations of Wall Street analysts.
However, expectations on the stock market had already risen sharply beforehand: from the low after the global stock market crash in mid-March below $ 300 to Thursday last week, the stock price fell. he had shot more than 50 percent. Stocks fluctuated sharply above $ 415. “With respect to stocks, it had already been highly evaluated,” said analyst Mark Mahaney of RBC bank.
However, Netflix’s numbers were “strong” and the company “delivered,” Mahaney said. With the exception of the United States and Canada, Netflix has broken new subscription records in the other three regions. And the first quarter of 2020 shouldn’t have been everything. The expert expects the number of subscriptions to increase as the year progresses. In 2020, at least 30 million new users are expected to be added worldwide.
Eric Sheridan of UBS Bank called the “strong growth in subscriptions” a “can win.” With 15.8 million new users, Netflix has far surpassed its 9.5 million acceptance, and even more clearly its own forecast of 7 million new subscriptions. The expert also praised the fact that the administration had kept down concerns about a possible interrupted production of low content in the second half of the year. Looking at the future of mobile and home use of digital media, Netflix Sheridan is arguably one of the best positioned providers.
/ hbr / DP / zb
THE CATS (dpa-AFX)
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