Netflix earnings soar as it adds subscribers

July 21
ENTERTAINMENT
Netflix earnings soar as it adds subscribers

Netflix’s second-quarter earnings more than doubled as new episodes from the hit series “Orange Is The New Black” helped the Internet video service surpass 50 million worldwide subscribers for the first time.

The gains announced Monday include an additional 570,000 U.S. subscribers, slightly more than Netflix’s management predicted. Investors applauded the second-quarter results as Netflix’s stock rose 1.8 percent to close at $451.95.

Netflix ended June with 36.2 million subscribers in the United States and 13.8 million customers in about 40 other countries. The Los Gatos, Calif., company picked up 1.1 million subscribers outside the United States in the second quarter, a figure that also topped management’s projections.

Netflix disclosed plans to start selling gift cards this fall in brick-and-mortar stores in the United States, Canada, Mexico and Germany. The company has only sold gift certificates online.

As Netflix’s video-streaming service steadily grows, the DVD-by-mail rental business that once was the company’s foundation is slowly crumbling. The DVD rental service shed an additional 391,000 subscribers in the second quarter to end June with fewer than 6.3 million customers. That’s a decline of 55 percent in less than three years.

Netflix earned $71 million, or $1.15 per share, during the April-June period. That compared with income of $29.5 million, or 49 cents per share, at the same time last year. Revenue climbed 25 percent from last year to $1.3 billion.

— Associated Press

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