Netflix Reported A Record Increase Of 15.77 Million Subscribers
The world's largest subscription video streaming service Netflix increased the number of paid users in the world in the first quarter by a record of 15.77 million, as people around the world are forced to stay at home due to the coronavirus pandemic, writes MarketWatch.
The company's previous record growth was recorded in January-March 2019-plus 9.6 million subscribers.
In the first quarter of 2020, analysts on average predicted an increase of 8.22 million, according to FactSet data. Netflix itself at the beginning of the year predicted growth of 7 million.
The company's net income for the reporting period more than doubled year-on-year, from $344 million, or $0.76 per share, to $709 million, or $1.57 per share. The service's quarterly revenue rose from $4.52 billion to $5.77 billion. Analysts had forecast earnings averaging $1.64 per share on revenue of $5.75 billion.
Netflix released quarterly reports after the end of major trading on Tuesday. In electronic trading after that, the company's securities rose by more than 9%.
During the COVID-19 coronavirus pandemic, the company's papers demonstrated more than just resilience. At the end of trading on Monday, the quotes reached a historical high of $437.49.
"During the first two months of the quarter, our subscriber growth was the same as in the previous two years, including in the US and Canada," Netflix said. "Then starting in March, when self-isolation regimes were introduced in many countries, many more households joined Netflix to enjoy entertainment."
The company understands that the rapid growth of the audience is unlikely to continue, and hopes that a successful fight against the coronavirus will allow different countries to soon cancel the isolation regime.
"When this happens, we expect the number of visitors and the growth rate to weaken. Our internal forecast for the second quarter is 7.5 million new paid subscribers worldwide," the company said in a press release.
In the first quarter, the number of customers in the United States and Canada increased by 2.3 million (a year earlier-by 1.9 million). At the same time, in Europe and the Middle East, the indicator increased by almost 7 million, in Latin America - by 2.9 million and in Asia - by 3.6 million.
Netflix's capitalization has grown by 13.6% over the past 12 months (by a third since the beginning of this year), while the S&P 500 stock index has fallen by 6.7% over this period.