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Netflix leaders claim that the company is well placed to resist any potential economic slowdown resulting from global trade tensions, while new subscribers continue to register despite increasing signs of consumer caution.
“Entertainment has always been fairly resilient in stricter economic times,” said Greg Peters, Co-chef leader on Thursday. “We pay particular attention to the feeling of consumers and where the wider economy is changing, but depending on the business at the moment, there is nothing significant to note.”
Netflix Actions have performed well this year, up 10% while the Nasdaq composite heavy of technology dropped by 16% due to the concerns of the pricing policies of US President Donald Trump. The actions of the video streaming company jumped 2.3% in trade after opening hours in New York on Thursday.
Netflix’s optimism was supported by solid results from the first quarter, who showed clientele that continued to grow even after having increased prices on American customers in January up to $ 24.99 per month for the higher level. The company said it expected “growth of healthy members, at higher subscription prices and a rough doubling of our advertising revenues” for the full year.
Netflix said net profit was $ 2.9 billion, compared to $ 2.3 billion a year earlier, on turnover of $ 10.5 billion. Its profit per share of $ 6.61 was ahead of Wall Street forecasts of $ 5.71.
The company has made no reference in its shareholder letter to Trump priceswho have shot many American companies. Netflix holds its forecasts for the full year of $ 43.5 billion to $ 44.5 billion in income.
In the first quarter, Netflix declared the growth of the subscriber better than expected, which contributed to increasing its profits by 24%. Viewers flocked to watch the series of psychological crimes Adolescence, Live streams from WWE fight and Back in action With Cameron Diaz and Jamie Foxx.
Netflix announced last year that it would no longer disclose its quarterly subscribers figures, a crucial metric for investors for a long time. Instead, he wishes to move the development towards income, the exploitation margin and other measures. In a letter to the shareholders, the company said that its subscription and advertising income were slightly higher than forecasts. It has more than 300 million subscribers worldwide.
In January, he pointed out that 19 million subscribers – his greatest gain in quarterly subscribers in his history, because he added live sporting events to his programming mixture.
The strong performance of Netflix this year contrasts with the actions of traditional media such as Paramount, Comcast and Walt Disney, which were examined by Brendan Carr, Trump chief of the Federal Communications Commission.
The company also said that the co-founder Reed Hastings had left his position as executive president to become the non-executive chairman of the board of directors.
