Latest news with #ThomasMonteiro
The Hindu
2 days ago
- Business
- The Hindu
Netflix delivers another strong performance in second quarter while following a familiar script
Netflix on Thursday announced another quarter of steady growth as the video streaming service's more than 300 million subscribers have become increasingly attractive to advertisers. It's a familiar script that Netflix has followed for the past three years to widen its lead in video streaming while delivering financial results that have usually easily exceeded the analyst projections that steer investors. While Netflix's profit eclipsed Wall Street's expectations by a wide margin in the April-June quarter, its revenue came in right around the bar set by analysts. The Los Gatos, California, company earned $3.1 billion, or $7.19 per share, a 46% increase from the same time last year. Revenue rose 16% to $11.08 billion. Management also slightly raised its revenue forecast for the entire year, citing a belief that its programming lineup will reel in more subscribers in the second half than the first. 'We're really incredibly excited about the back half of this year and confident that it keeps rolling in '26,' Netflix co-CEO Ted Sarandos told analysts during a Thursday video conference. Although he believes Netflix remains 'perfectly positioned to keep thriving,' analyst Thomas Monteiro said investors were disappointed that the company didn't boost its full-year guidance for revenue and its profit margins by even more against the backdrop of its accelerating momentum. Netflix's shares slipped 1% in extended trading, indicating investors expected an even more robust performance. But that is a minor stumble, given Netflix's stock price has soared 43% this year. The stock's strong run began during the second half of 2022 when the company introduced a low-priced version of its service with commercial interruptions as an antidote to an abrupt downturn in subscribers. The video streaming service is also faring well in Hollywood, as evidenced by the 120 Emmy nominations showered upon its programs earlier this week – second only to Warner Bros. Discovery's HBO Max. In the past quarter, Netflix hailed 'Sirens,' 'Ginny & Georgia' and 'The Four Seasons' as being among its most watched programming. The popularity of Netflix's scripted programming combined with weekly World Wrestling Entertainment spectacles, high-profile boxing matches and periodic National Football League games have enabled its service to retain subscribers while its prices rise, including on the cheapest tier. Netflix stopped providing quarterly updates on its total subscribers at the beginning of this year, but the company's revenue growth leaves no doubt that the number has grown from the 302 million reported at the end of 2024. It's gradually turning into an advertising magnet, too. Although Netflix still isn't selling enough commercials to require a disclosure of its advertising revenue, management continues to highlight the growth in its results. Netflix said its ad revenue for this year is on pace to double from last year. Unlike most major tech companies, Netflix has had the benefit of peddling a service that so far has avoided being whipsawed by President Donald Trump's fluctuating trade war. But Trump has threatened to introduce tariffs on entertainment made outside the U.S., a move that could hit Netflix especially hard because of its global reach. In an apparent olive branch for the president, Netflix made the unusual move of citing its commitment to the U.S. in its quarterly shareholder letter. The company disclosed that it had invested an estimated $125 billion in the U.S. from 2020-2024 and cited sound stages and production facilities in New Mexico and New Jersey as examples of its ongoing expansion in its home country.
The Star
2 days ago
- Business
- The Star
'Squid Game' boosts Netflix quarter, company raises revenue guidance
FILE PHOTO: A performer dressed as a 'Squid Game' soldier stands in front of the Netflix and Squid Game logos before a parade through central Seoul, followed by a fan event with cast to celebrate the release of the third season of Netflix's hit series, in Seoul, South Korea, June 28, 2025. REUTERS/Kim Soo-hyeon/File Photo LOS ANGELES (Reuters) -The final season of global phenomenon "Squid Game" helped Netflix beat Wall Street earnings targets for the second quarter, and the streaming service raised its revenue guidance for the year. Some investors had hoped for more from the dominant movie and TV streaming service, analysts said. Netflix shares had risen nearly 44% this year ahead of the earnings report on Thursday. The stock fell 1.8% to $1,251.86 in after-hours trading. Netflix has been building an ad-supported service to reel in price-sensitive viewers, though it has said advertising will not be a primary driver of revenue growth this year. The company also has added live events such as WWE wrestling to draw advertisers and viewers. For April through June, Netflix posted diluted earnings per share of $7.19. That topped the $7.08 consensus estimate of analysts polled by LSEG. The company raised revenue guidance for 2025 to $44.8 billion to $45.2 billion, citing the weakening of the U.S. dollar plus "healthy member growth and ad sales." Its previous guidance was up to $44.5 billion. analyst Thomas Monteiro said investors were expecting "a much stronger upward revision" to 2025 guidance. "The full-year outlook now feels quite conservative, which is problematic for a stock priced for perfection," Monteiro said. "At this stage, the company appears overly dependent on further price increases — at least through 2026 — to drive revenue," he added. For the just-ended quarter, net income came in at $3.1 billion, edging forecasts of $3.06 billion. Revenue totaled $11.08 billion, above the $11.07 billion analyst projection. Netflix released the third and final season of dystopian Korean drama "Squid Game" a few days before the second quarter ended in June. The show is the most popular non-English Netflix show in the streaming service's history. Season three racked up 122 million views, Netflix said. Other releases during the quarter included "Sirens," "The Four Seasons" and a third season of "Ginny & Georgia." The streaming video pioneer stopped disclosing quarterly subscriber numbers this year, instead urging investors to focus on profit as a measure of its success. It said member growth was ahead of its forecast but occurred late in the quarter, which limited the impact on second-quarter revenue. Looking ahead, Netflix forecast revenue of $11.5 billion and net income of nearly $3 billion. Analysts had projected $11.3 billion and $2.9 billion, respectively. The company has new seasons of two of its biggest shows coming later this year. "Wednesday" returns in August, and the final episodes of "Stranger Things" will be released in November and December. Chief Financial Officer Spencer Neumann, asked about the company's view on acquiring assets from other media companies, said Netflix would be "choosy." "We've historically been more builders than buyers, and we continue to see big runway for growth without fundamentally changing that playbook," Neumann said during a post-earnings video. (Reporting by Lisa Richwine and Dawn Chmielewski in Los Angeles; Additional reporting by Akash Sriram and Kritika Lamba in Bengaluru; Editing by Matthew Lewis)
New Straits Times
2 days ago
- Business
- New Straits Times
'Squid Game' boosts Netflix quarter, company raises revenue guidance
LOS ANGELES: The final season of global phenomenon "Squid Game" helped Netflix beat Wall Street earnings targets for the second quarter, and the streaming service raised its revenue guidance for the year. Some investors had hoped for more from the dominant movie and TV streaming service, analysts said. Netflix shares had risen nearly 44 per cent this year ahead of the earnings report on Thursday. The stock fell 1.8 per cent to US$1,251.86 in after-hours trading. Netflix has been building an ad-supported service to reel in price-sensitive viewers, though it has said advertising will not be a primary driver of revenue growth this year. The company also has added live events such as WWE wrestling to draw advertisers and viewers. For April through June, Netflix posted diluted earnings per share of US$7.19. That topped the US$7.08 consensus estimate of analysts polled by LSEG. The company raised revenue guidance for 2025 to US$44.8 billion to US$45.2 billion, citing the weakening of the US dollar plus "healthy member growth and ad sales." Its previous guidance was up to US$44.5 billion. analyst Thomas Monteiro said investors were expecting "a much stronger upward revision" to 2025 guidance. "The full-year outlook now feels quite conservative, which is problematic for a stock priced for perfection," Monteiro said. "At this stage, the company appears overly dependent on further price increases — at least through 2026 — to drive revenue," he added. For the just-ended quarter, net income came in at US$3.1 billion, edging forecasts of US$3.06 billion. Revenue totaled US$11.08 billion, above the US$11.07 billion analyst projection. Netflix released the third and final season of dystopian Korean drama "Squid Game" a few days before the second quarter ended in June. The show is the most popular non-English Netflix show in the streaming service's history. Season three racked up 122 million views, Netflix said. Other releases during the quarter included "Sirens," "The Four Seasons" and a third season of "Ginny & Georgia." The streaming video pioneer stopped disclosing quarterly subscriber numbers this year, instead urging investors to focus on profit as a measure of its success. It said member growth was ahead of its forecast but occurred late in the quarter, which limited the impact on second-quarter revenue. Looking ahead, Netflix forecast revenue of US$11.5 billion and net income of nearly US$3 billion. Analysts had projected US$11.3 billion and US$2.9 billion, respectively. The company has new seasons of two of its biggest shows coming later this year. "Wednesday" returns in August, and the final episodes of "Stranger Things" will be released in November and December. Chief financial officer Spencer Neumann, asked about the company's view on acquiring assets from other media companies, said Netflix would be "choosy." "We've historically been more builders than buyers, and we continue to see big runway for growth without fundamentally changing that playbook," Neumann said during a post-earnings video.
Straits Times
2 days ago
- Business
- Straits Times
Netflix earnings surge on Squid Game 3 boost, with final season racking up 122 million views
Find out what's new on ST website and app. The final season of global phenomenon 'Squid Game' helped Netflix beat Wall Street earnings targets for the second quarter. LOS ANGELES - The final season of global phenomenon 'Squid Game' helped Netflix beat Wall Street earnings targets for the second quarter, and the streaming service raised its revenue guidance for the year. Some investors had hoped for more from the dominant movie and TV streaming service, analysts said. Netflix shares had risen nearly 44 per cent in 2025 ahead of the earnings report on July 17. The stock fell 1.8 per cent to US$1,251.86 in after-hours trading. Netflix has been building an ad-supported service to reel in price-sensitive viewers, though it has said advertising will not be a primary driver of revenue growth in 2025. The company also has added live events such as WWE wrestling to draw advertisers and viewers. For April through June, Netflix posted diluted earnings per share of US$7.19. That topped the US$7.08 consensus estimate of analysts polled by LSEG. The company raised revenue guidance for 2025 to US$44.8 billion to US$45.2 billion, citing the weakening of the US dollar plus 'healthy member growth and ad sales.' Its previous guidance was up to US$44.5 billion. analyst Thomas Monteiro said investors were expecting 'a much stronger upward revision' to 2025 guidance. 'The full-year outlook now feels quite conservative, which is problematic for a stock priced for perfection,' Monteiro said. Top stories Swipe. Select. Stay informed. Singapore Driverless bus in Sentosa gets green light to run without safety officer in first for S'pore Asia Malaysia's King appoints Wan Ahmad Farid as new Chief Justice World Trump diagnosed with vein condition causing leg swelling, White House says World US strikes destroyed only one of three Iranian nuclear sites, says new report Opinion Is your child getting drawn to drugs? Don't look away and don't give up Business 5 things to know about Kuok Hui Kwong, tycoon Robert Kuok's daughter and Shangri-La Asia head honcho Business Granddaughter of late Indonesian tycoon pays $25 million for Singapore bungalow Singapore Sex first, then you can sell my flat: Women property agents fend off indecent proposals and harassment 'At this stage, the company appears overly dependent on further price increases – at least through 2026 – to drive revenue,' he added. For the just-ended quarter, net income came in at US$3.1 billion, edging forecasts of US$3.06 billion. Revenue totaled US$11.08 billion, above the US$11.07 billion analyst projection. Netflix released the third and final season of dystopian Korean drama Squid Game a few days before the second quarter ended in June. The show is the most popular non-English Netflix show in the streaming service's history. Season three racked up 122 million views, Netflix said. Other releases during the quarter included Sirens, The Four Seasons and a third season of Ginny & Georgia. The streaming video pioneer stopped disclosing quarterly subscriber numbers in 2025, instead urging investors to focus on profit as a measure of its success. It said member growth was ahead of its forecast but occurred late in the quarter, which limited the impact on second quarter revenue. The company has new seasons of two of its biggest shows coming later this year. Wednesday returns in August, and the final episodes of Stranger Things will be released in November and December. Chief financial officer Spencer Neumann, asked about the company's view on acquiring assets from other media companies, said Netflix would be 'choosy.' 'We've historically been more builders than buyers, and we continue to see big runway for growth without fundamentally changing that playbook,' Mr Neumann said during a post-earnings video. REUTERS
Business Times
2 days ago
- Business
- Business Times
‘Squid Game' boosts Netflix quarter, company raises revenue guidance
[LOS ANGELES] The final season of global phenomenon Squid Game helped Netflix beat Wall Street earnings targets for the second quarter, and the streaming service raised its revenue guidance for the year. Some investors had hoped for more from the dominant movie and TV streaming service, analysts said. Netflix shares had risen nearly 44 per cent this year ahead of the earnings report on Thursday (Jul 16). The stock fell 1.8 per cent to US$1,251.86 in after-hours trading. Netflix has been building an ad-supported service to reel in price-sensitive viewers, though it has said advertising will not be a primary driver of revenue growth this year. The company has also added live events such as WWE wrestling to draw advertisers and viewers. For April to June, Netflix posted diluted earnings per share of US$7.19. That topped the US$7.08 consensus estimate of analysts polled by LSEG. The company raised revenue guidance for 2025 to US$44.8 billion to US$45.2 billion, citing the weakening of the US dollar plus 'healthy member growth and ad sales'. Its previous guidance was up to US$44.5 billion. analyst Thomas Monteiro said investors were expecting 'a much stronger upward revision' to 2025 guidance. A NEWSLETTER FOR YOU Friday, 2 pm Lifestyle Our picks of the latest dining, travel and leisure options to treat yourself. Sign Up Sign Up 'The full-year outlook now feels quite conservative, which is problematic for a stock priced for perfection,' Monteiro said. 'At this stage, the company appears overly dependent on further price increases – at least till 2026 – to drive revenue,' he added. For the just-ended quarter, net income came in at US$3.1 billion, edging forecasts of US$3.06 billion. Revenue totalled US$11.08 billion, above the US$11.07 billion analyst projection. Netflix released the third and final season of dystopian Korean drama Squid Game a few days before the second quarter ended in June. The show is the most popular non-English Netflix show in the streaming service's history. Season three racked up 122 million views, Netflix said. Other releases during the quarter included Sirens, The Four Seasons and a third season of Ginny & Georgia. The streaming video pioneer stopped disclosing quarterly subscriber numbers this year, instead urging investors to focus on profit as a measure of its success. It said member growth was ahead of its forecast but occurred late in the quarter, which limited the impact on second-quarter revenue. Looking ahead, Netflix forecasts revenue of US$11.5 billion and net income of nearly US$3 billion. Analysts had projected US$11.3 billion and US$2.9 billion, respectively. The company has new seasons of two of its biggest shows coming later this year. Wednesday returns in August, and the final episodes of Stranger Things will be released in November and December. Chief financial officer Spencer Neumann, asked about the company's view on acquiring assets from other media companies, said Netflix would be 'choosy'. 'We have historically been more builders than buyers, and we continue to see big runway for growth without fundamentally changing that playbook,' Neumann said during a post-earnings video. REUTERS
