Netflix -13% AH earnings miss – misses subscriber additions by 1mil

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The streaming giant added 5.15 million subscribers during the period, less than the 6.2 it had forecast in April.

Netflix shares dropped significantly on Monday after it reported slower subscriber growth than expected.

The streaming giant, which has seen user growth slow in the U.S. as it nears market saturation, had been counting on its global push to help it continue to grow at a rapid clip. And its international user growth disappointed on Monday, July 16 when it reported second quarter earnings results.

Netflix brought in 5.15 total new members during the quarter, less than the 6.2 million it had forecasted in April and the around 6 million that Wall Street was anticipating. The company had planned to add around 5 million international members during the period but, instead, added 4.47 million. Domestically, Netflix added 670,000 subscribers.

CEO Reed Hastings, in a letter to shareholders, called the quarter “strong but not stellar.” He gave little reason for why Netflix’s subscriber additions came in under previous forecasts. For the third quarter, Netflix is being more conservative and forecasting net subscriber additions of 5 million — 650,000 in the U.S. and 4.35 million internationally.

www.hollywoodreporter.com/news/netflix-stock-plummets-weak-subscriber-growth-1127434

 

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