With 7 million new users and more than 400 million dollars of profit, Netflix exceeds estimates in the third quarter of 2018
The streaming company has presented its quarterly results on Tuesday showing growth figures that have exceeded their own expectations and those of most market analysts. While in the past quarter Netflix has not achieved its objectives, it has closed the present having easily surpassed the expected growth of users with 7 million new customers.
The figure, two million above the expected, expands the global user base to 137 million and leads to a strong growth outside the US territory: for the 1.96 million new users in the US there are 5.87 in the international market. This growth is set to continue since customers can use of tools to watch Netflix globally without geo-restrictions. Some positive figures come after a complicated second quarter in which Netflix did not reach the estimated figures, registering 1.2 million customers less than expected, and saw its value on the stock market decline. For the next quarter the company estimates a growth of 9.4 million viewers.
The good news also continues in the field of income since, with a net profit of 403 million dollars (of a total income of around 4,000 million), the company triples the money obtained in the same period last year. And, again, they are data that exceed the forecasts, in this case of 307 million dollars.
A fierce and enriching competition is approaching with new platforms of streaming following the wake of Netflix, for which the platform seems well prepared: analysts from companies like Cowen expect the company to invest around 13,000 million dollars in new productions, which would mean an increase of more than 5,000 million according to the company’s estimates for this year. His latest movements, the opening of new production centers and offices in Europe, demonstrate the commitment of the brand to continue growing.
Today, after closing Wall Street with the present quarterly results, investors have been slow to trust Netflix again, taking shares to a growth of more than 14%, for a total revaluation of 64% so far this year. We do not know what a market that is so atomized in the consumption of streaming content will bring but, until then, the Netflix present is brilliant.