Netflix closes the third quarter with profits above expectations. The net result amounted to approx 1,45 billion dollars, up sharply compared to the 790 million booked in the third quarter of 2020, with a earning per share equal to dollars 3,19, compared to $2,56 expected. Revenue was in line with expectations, at $7,48 billion, up 16,3% from $6,44 billion in the prior year quarter.
After the sharp slowdown in the first half, the Los Gatos company in California at the end of September reached a total of 213,6 millions of subscribers all over the world. Despite the recent increase in the cost of subscriptions, the American streaming giant has recorded almost 4,4 million new subscribers in the third quarter of the year, beating all forecasts by analysts who projected 3,86 million new users in the period. With Asia and the North American market leading the increase.
In detail, there are about 73 new American users (Canada and the United States). But the greatest growth comes from Asia with +2,18 million subscribers. Finally, in Europe, the Middle East and Africa there were 1,8 million more subscribers and around 300 thousand in Latin America.
The growth of the last quarter was driven by the success of various content recently landed on the platform, primarily the most watched TV show in over 90 countries: “Squid Games” produced by Netflix itself. And for the occasion, Reed Hastings, CEO of the company, showed up for the appointment wearing the suit from the series.
“We are still quite small with plenty of opportunities to grow. In our largest market, the United States, we are less than 10% of the time spent in front of the television,” said Netflix commenting on the success of the South Korean series.
According to analysts, the fourth quarter will not be outdone. Thanks to the release of highly anticipated titles such as the second season of The Witcher and the last season of The Paper House. Netflix expects an increase in subscribers of about 8,5 million, to a record in the first quarter of 2019. Instead, for the last quarter of the year, Netflix expects earnings per share of $0,8 and revenues of $7,71 billion.
