Netflix Says Subscribers Grew by 5.2M in 2Q

Earnings per share rises to 85 cents
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Netflix said it continued its growth with its subscriber total rising by 5.2 million to 130 million in the second quarter.

Earnings grew to $384 million, or 85 cents a share, from $66 million, or 15 cents a share a year ago.

Revenues rose to $3.9 billion from $2.8 billion.

The subscriber numbers topped Wall Street forecasts, but not Netflix’s own original estimate. The shortfall sent Netflix's high-flying stock lower in after-hours trading.

Related: Netflix Adds 7.41 Million Streaming Subs in Q1

U.S. subscribers rose to 57.48 million from 51.92 million a year ago and 56.7 million in the first quarter.

Earnings topped forecasts, though revenue was short of expectations.

In its letter to shareholders, Netflix noted that it received the highest number of Emmy nominations.

“In addition to succeeding commercially, we are starting to lead artistically in some categories, with our creators earning enough Emmy nominations this year to collectively break HBO’s amazing 17-year run,” the company said.

Related: This Week in Netflix

For the third quarter, Netflix is forecasting that its subscribers will grow to 135 million. Domestic subs are expected to hit 58 million

Netflix expected third quarter net income of $307 million, or 68 cents a share.

Netflix said it continues to increase the amount of content it provides both in English and in non-English language markets around the world.

“We believe that consumer appetite for great content is broad and that there is room for multiple parties to have attractive offerings. We anticipate more competition from the combined AT&T/Warner Media, from the combined Fox/Disney or Fox/Comcast as well as from international players like Germany’s ProSieben and Salto in France. Our strategy is to simply keep improving, as we’ve been doing every year in the past,” the company said.

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