Unlock Editor’s Digest Lock for Free
Netflix revenues rose 24% in the first quarter due to rising prices and healthy subscriber growth. Viewers flocked to watch the adolescent and live stream of WWE Wrestling’s psychological crime series.
The streaming company’s net income rose by $2.9 billion from revenue of $10.5 billion from $2.3 billion the previous year. Earnings per share of $6.61 came ahead of the Wall Street forecast of $5.71.
Netflix stocks have been steadily performing well this year, rising 10%, but the high-tech Nasdaq Composite fell 16%, partly due to concerns over President Donald Trump’s tariff policy. Netflix shares rose an additional 5% on Thursday in after-hours trading in New York.
The company has not mentioned shareholders’ letters about Trump’s tariffs that have hit many US companies. Netflix maintains annual forecasts of revenues between $43.5 billion and $44.5 billion based on the assumption of “healthy member growth, increased subscription prices, and roughly doubled advertising revenue.”
Last year, Netflix announced it would no longer disclose its quarterly subscriber numbers. Instead, they want to shift their focus to revenue, operating income and other metrics. In a letter to shareholders, Netflix said its subscription and advertising revenues were slightly higher than expected.
In January, we reported new subscribers at 19MN. This has earned the greatest benefit to quarterly subscribers in history as it added live sporting events to the programming mix.
Netflix’s share performance is in contrast to traditional media stocks such as Paramount, Comcast and Walt Disney. This is being scrutinized by Brendan Carr, head of Trump’s Federal Communications Commission.
