(Reuters) – Netflix Inc (NFLX.O) She sent slightly more subscribers than Wall Street expected in the third quarter, relieving investors that the company might fall short just as Disney and Apple prepare the streaming video wars.
The results for July through September were the same as that of the previous quarter when Netflix lost its Civil Service streaming customers for the first time in eight years and lost targets to overseas subscribers. Netflix shares rose 9.2% in post-time trade on Wednesday to $ 312.69.
This performance, combined with concerns about new competitors, had relied on Netflix shares, which dropped 21% from the last earnings report by regular Wednesday trading.
For the third quarter, Netflix strengthened new season seasons such as “Stranger Things” and “13 Reasons. data from Refinitiv.
Netflix said that it was on track to achieve a full year operating margins of 13% and was focusing on a further 300 points expansion in 2020.
The total number of subscribers was 158 million.
However, the company faces challenges.
“Netflix's results were pretty good that they had concerns about price sensitivity and penetration levels in the domestic markets,” said Fitch, Patrice Cucinello, director. “A caveat is that the competition has not yet hit.”
The company anticipates receiving 7.6 million customers over the last three months of 2019. Analysts were expected to have a forecast of 9.4 million. The company will release a new installment of the film “The Crown” and Martin Scorsese “The Irishman” during this time.
But there will be a new competition before the city starting in November from Disney +, a streaming service from Walt Disney Co (DIS.N(a) will feature films and television shows from Marvel, “Star Wars,” popular with Disney and other properties.
Apple Inc (AAPL.Oit will also initiate a much smaller streaming video service with original programs in November. AT&T Inc's (T.N) HBO Max, and a new offer from Comcast Corp (CMCSA.O), they are expected to enter the market next year.
Netflix argued that the new services would increase interest in the video streaming market generally.
“In our view, the likely outcome of the launch of these new services will be to accelerate the transition from linear recreation to spending on demand,” the company wrote in a letter to investors.
Netflix acknowledged, however, that it was still growing from price increases earlier this year in the United States. “Maintaining full price fluctuations in advance, resulting in slower membership growth, has not been sustained on an ongoing basis,” he said.
The most popular Netflix plan in the United States costs $ 13, almost twice the cost of $ 7 a month for Disney +. Apple TV + will start at $ 5 per month.
Netflix said that its additional income would allow it to continue investing “to further strengthen our value offer.”
For the third quarter, Netflix's net income increased to $ 665 million, or $ 1.47 per share, from $ 403 million, or 89 cent per share, a year earlier. That was the goal of Wall Street for $ 1.04.
The total revenue rose to $ 5.25 billion from about $ 4 billion. Analysts were expected to average $ 5.52 billion.
Some investors were concerned about the debt collected by Netflix. The company stated in the earnings report that it hoped that free cash flows in 2020 and annually would improve further. Meanwhile, Netflix will continue to achieve the high-product market as required, he said.
In the next earnings report, Netflix will begin to generate income and membership by region – Pacific in Asia, Europe, the Middle East / Africa, Latin America and the US, the company said.
Reporting by Neha Malara in Europe Europe and Lisa Richwine in Los Angeles; Additional reporting by Helen Coster in New York; Edited by Anil D 'Silva and Lisa Shumaker
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