by Lisa Richwine
LOS ANGELES (Reuters) – Netflix on Wednesday reported second-quarter new subscribers well above Wall Street expectations, after implementing measures to prevent password sharing and a new discounted offer with ads.
Its turnover, however, was just below Wall Street expectations, as well as the group’s forecasts for the third quarter. Netflix said it expects revenue growth to accelerate in the second half.
The title of the streaming giant fell 4.3% in post-closing trading.
With 5.9 million new subscribers in the second quarter, Netflix largely beat the consensus of 1.9 million new customers.
Looking for additional ways to earn revenue in a context of increased competition and a near-saturated market in the United States, Netflix launched cheaper subscriptions in the country last November, with advertisements.
The platform also implemented large-scale measures in May to prevent the sharing of passwords.
According to data released Wednesday, Netflix posted April-June diluted earnings per share of $3.29, versus a consensus of $2.86 according to Refinitiv data.
Its quarterly turnover increased by 2.7% over one year, to 8.2 billion dollars, while analysts anticipated an average amount of 8.3 billion dollars.
For July-September, Netflix said it anticipates revenue of $8.5 billion, lower than Wall Street’s forecast of $8.7 billion.
Like its rivals, the group faces strikes by tens of thousands of screenwriters and actors in Hollywood, with the effect of stopping many television and film productions.
Analysts, however, believe that Netflix has an advantage due to its global production capabilities.
(Report Lisa Richwine; Jean Terzian)
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