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Netflix raises its profits 73%, but falls short in subscribers

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The streaming entertainment content platform Netflix announced this Tuesday some benefits between January and September of 2,219 million dollars, which represents an increase of 73% compared to the same period last year, driven by the increase in consumption due to the Covid-19 pandemic.

In the first 9 months of its fiscal year, the firm that Reed Hastings runs brought in $ 18.35 billion, up from $ 14.689 million recorded in September last year, and its shareholders pocketed $ 5.04 per share compared to $ 2.93 a year ago .

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The company’s gross profits – before interest and taxes – were $ 3,631 million during the past 9 months, compared to the 2,145 million earned between January and September 2019.

So far this year, Netflix has increased its long-term debt by $ 800 million, to the current $ 15.547 million.

Despite the good growth rate, the Los Gatos, California-based firm fell below expectations in terms of subscriber growth, which in the last quarter were 2.2 million compared to the more than 3 million that analysts estimated .

This is explained, as indicated by the company itself, by the 2 record quarters registered since the start of the pandemic in April and July, since many potential customers advanced their purchase decisions and signed up earlier than they would have done in not have been for the coronavirus.

The Netflix accounts did not convince investors on Wall Street, and its shares fell more than 6% to $ 492.44 per share in post-Wall Street electronic trading. 

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