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Netflix shares drop as subscriber numbers scrapped

Published 19/04/2024, 08:00
© Reuters Netflix shares drop as subscriber numbers scrapped
NFLX
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Proactive Investors - Netflix (NASDAQ:NFLX) credited its crackdown on password sharing as one of the reasons profits surged ahead in its latest quarter.

The streaming giant added 9.3 million new subscribers in the three months to the end of March compared to market estimates for five million and a 1.8 million improvement in the same period a year ago.

However, the group also said that from next year it will stop reporting subscriber numbers, stating that it was just one component of its growth and in future investors should focus on profits.

Commentators immediately speculated whether subscriber numbers will slow going forward or even fall, sending its shares lower in overnight trading.

“We have built a hard-to-replicate combination of a strong slate, superior recommendations, broad reach and intense fandom, which drives healthy engagement on Netflix,” the company said in a letter to shareholders.

“Improvement in these key areas is the best way to delight our members and continue to grow our business.”

Revenues in the quarter rose by almost 15% to US$9.37 billion while profits rose to US$2.61 billion from US$1.47 billion a year ago.

Read more on Proactive Investors UK

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