By Tess Stynes
Netflix Inc. said it added 4.05 million streaming subscribers
globally in the fourth quarter, above the company's estimate of 4
million, boosted by a better-than-expected number of U.S.
additions.
Shares of Netflix, which fell more than 19% following the
company's previous quarterly report, rose more than 13% in
after-hours trading as the report Tuesday eases concerns about
subscriber growth.
The streaming-video service has bet big on a rapid international
expansion as it faces growing domestic competition, such as rival
HBO's plans to offer a stand-alone streaming service to U.S.
consumers, without requiring a cable subscription.
In the U.S. and abroad, Netflix has been pursuing tie-ups with
pay-TV operators. In the quarter, it sealed a deal with its biggest
U.S. partner yet, satellite TV provider Dish Network Corp., to make
Netflix's app available on Dish's latest set-top boxes.
In the latest quarter, the streaming TV and DVD-by-mail provider
added 1.9 million U.S. streaming customers, compared with 2.33
million in the year-earlier quarter and above its forecast for 1.85
million U.S. customers.
For the first quarter, the company forecast that it would add
1.8 million new domestic customers, compared with 2.25 million in
the first quarter of 2014.
In its international business, Netflix added 2.43 million
subscribers, above its expectations for 2.15 million. The company
added 1.74 million international subscribers a year earlier and
2.04 million in the third quarter.
For the first quarter, the company forecast that it would add
2.25 million new international streaming customers, compared with
1.75 million in the first quarter of 2014.
Overall, Netflix reported a profit of $83.4 million, or $1.35 a
share, up from $48.4 million, or 79 cents a share, a year earlier.
Excluding certain costs, per-share earnings were 72 cents a share
in the latest quarter; the company said in October that it expected
44 cents a share.
Revenue increased to $1.48 million from $1.18 million, slightly
below the estimate of $1.49 billion by analysts polled by Thomson
Reuters.
For the current quarter, the company forecast per-share earnings
of 60 cents a share. Analysts polled by Thomson Reuters expected
per-share profit of 77 cents.
Write to Tess Stynes at tess.stynes@wsj.com
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