Netflix raises forecast on promise of Stranger Things finale
The streaming group reported second-quarter revenue of $11.08 billion, up 16 per cent year-on-year and ahead of analyst estimates of $11.06 billion. Net income rose 8.1 per cent to $3.1 billion, ahead of expectations of $3 billion.
Despite the upbeat outlook, shares in the $543 billion company were $12.72, or 1 per cent, lower in after-hours trading in New York at $1,261.45. In the year to date, the stock has risen 42 per cent.
The California-based company, which was founded in 1997, released hits during the quarter including Sirens, starring Julianne Moore, and the third season of Squid Game, the South Korean series about a deadly contest.
The company said it was optimistic heading into the second half of the year, with a slate of planned releases including the Stranger Things finale, the Canelo-Crawford live boxing match, and Adam Sandler's Happy Gilmore 2.
Netflix raised its full-year sales forecast to a range of $44.8 billion to $45.2 billion, up from $43.5 billion to $44.5 billion, which it said primarily reflected the weakening of the US dollar, as well as healthy membership growth and ad sales. The company has about 300 million paid memberships.
It has stopped reporting quarterly subscriber numbers this year, shifting the focus for investors towards revenue and profit forecasts. The group has diversified its business model since the end of the pandemic, adding advertising sales and live events to its subscription model.
Netflix said it expected to report third-quarter revenue of $11.5 billion, ahead of analyst estimates of $11.3 billion. It has forecast third-quarter net income of just under $3 billion. The company is aiming to boost its valuation to $1 trillion by 2030.
Ted Sarandos, the chief executive, said in April that Netflix had an addressable market of $650 billion in consumer spending and it was currently 'about 5 per cent of that'.
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