Tuesday, April 19, 2016

Netflix “sends” disappointing outlook – financial and economic

The online video service has grown rapidly in the first quarter. However, the forecast for the current reporting period remains below expectations. The shares fall after trading under pressure.

For Netflix is ​​as important as fast Internet for video streaming. On Wall Street, the forecast for the current quarter therefore solves disappointment: The company that offers hit shows like “House of Cards” and “Orange Is the New Black”, expects a significantly less big increase in new customers

. Overall, Netflix expects for the current reporting period with 2.5 million new subscribers. 500,000 of which will come from the domestic market USA, which is about the market expectations. Abroad, however, there should be only 2 million new customers, while analysts have been calculated at nearly 3.5 million.

“We have a good start to 2016 found. Netflix has expanded in January in 130 new countries and has completed the first quarter with a total of more than 81 million subscribers, “said CEO Reed Hastings. But financially redeemed his outlook among investors little enthusiasm.

Hastings predicted for the second quarter earnings of 2 cents per share and $ 1.96 billion in sales. Analysts had however expected 5 cents Earnings per share and revenue of $ 2.1 billion well.

That Netflix less rapidly growing is sometimes to demanding comparative figures for the same period. At that time the company had launched its range of series and films in Australia and New Zealand, where it was able to quickly gain many new customers.

The Securities Netflix announced on Monday evening in after hours trading nearly 8% after. However, large price fluctuations after the result publication are not uncommon for the title. 2015 they were among the biggest stars on the US stock market. Since the beginning of the year they have however lost over 5%, while the benchmark index S &. P 500 recorded almost 2.5% up

New customers is to win for the company from California so important because it thus can better finance the growth and the cost of producing own. In addition, it looks at a variety of competitors such as Hulu, HBO or the streaming service Amazon faced.

Better than the forecast falls the view from back. Profit rose in the last quarter to $ 27.7 million, or 6 cents per share, after a year earlier $ 23.7 million, or 5 cents had resulted each title. Sales grew from 1.6 to almost $ 2 billion. With two limit values ​​Netflix has exceeded expectations.


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