Neither the end of health restrictions, nor the addition of advertisements to the content, nor the ban on account sharing. netflix exceeded the latest net subscription figure and beat one New Record Adding 8.8 million users as of September 30. The numbers are so positive that it even exceeds market estimates of around 6 million. The streaming giant reported profits of $1,677 million in the third quarter, up 20% from the same period a year ago. Investors wanted to join the Netflix party: Immediately after the session ended, the company’s shares suddenly rose 10%.
In line with the figures expected by analysts Netflix revenue increased to 8 billion 542 million dollars in the last quarter. What the market didn’t expect was that earnings per share would also rise to $3.8 compared to the expected $3.56. Another good news for the streaming company is the increase in the number of members subscribing to its plan with ads; This increase, up almost 70% from the previous quarter, represents 30% of new hires across the 12 countries where it is currently present. Done. The firm expects revenues to reach $8.7 billion (up 11% year-over-year) in the final quarter of the year and operating margins for full-year 2023 to be between 22% and 23%.
Due to all these results, the company is optimistic about its prospects and the future of the entertainment industry. “Since launching our service globally in 2016, we have been able to invest heavily in our latency (with content depreciation increasing 3x per year from $5 billion to $14.5 billion), Netflix’s operating margin increased (5x from 4% to 20%) and improved our free cash flow from $1.7 billion annually to approximately $6 billion,” they explained in a statement sent to investors.
difficult months
The last six months have been complicated for the industry due to a strike by screenwriters and actors demanding better working conditions in Hollywood. “We are committed to resolving outstanding issues as quickly as possible so everyone can get back to work and make the movies and television shows that audiences love,” the company said. A few months before this conflict with its employees began, Netflix made important decisions to maintain the sustainability of its business. The first of these make a clean break with shared accountsAccording to the company, this is something that has been a “success” in all the regions they operate in.
Another change in recent years is the price. Although Netflix has chosen to postpone price increases because it has eliminated account sharing in most of its countries He did not forget his plan to offer more quality at a higher cost. Thus, the company will increase the rates to $11.99 in the basic plan and $22.49 in the premium plan in the USA. “Our starting price is very competitive with other providers and is, for example, $6.99 per month in the US, which is much lower than the average price of a movie ticket,” the firm says. The United Kingdom and France will also suffer an upward adjustment to basic plans ($7.99 as of today in both cases) and premiums ($17.99 and $19.99, respectively).