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
● Yahoo said it will buy Flurry, which helps other companies make apps and design mobile ad campaigns. Yahoo did not disclose how much it will pay for the San Francisco company, which also helps companies analyze the effectiveness of their advertising. Flurry says its analytics are used by 170,000 developers. Yahoo says the acquisition will give Flurry the resources it needs to work with more developers.
● People keep flocking to Chipotle despite the chain’s recent price hikes. The Denver-based company said sales at established locations rose 17.3 percent in its second quarter. Chipotle, which has about 1,700 restaurants, said the sales surge was driven by higher customer traffic and to a lesser extent by national price hikes that were recently put in place, in part to offset rising costs for such ingredients as beef and avocados. For the quarter that ended June 30, Chipotle’s profit rose by 26 percent to $110.3 million, or $3.50 per share. Total revenue climbed 29 percent to $1.05 billion.
● The U.S. commonwealth of Puerto Rico asked a federal court to dismiss as premature a lawsuit filed by U.S. mutual funds that sought to strike down a recently enacted Puerto Rican law that said the funds posed a threat to American investors. The law, known as the Public Corporation Debt Enforcement and Recovery Act, allows certain public corporations to modify their debts. The passage of the law in June spooked the $3.7 trillion U.S. municipal bond market and weighed on prices of bonds issued by the Puerto Rico Electric Power Authority. Puerto Rico said the lawsuit, brought by bond funds run by Franklin Templeton and OppenheimerFunds, was untimely because PREPA had not sought to restructure its debt.
● Commissioner Scott O’Malia said he intends to leave the Commodity Futures Trading Commission, creating a vacancy just a short while after Chairman Timothy Massad took over at the derivatives regulator. O’Malia, a Republican, said he intended to resign as of Aug. 8, after about four and a half years on the five-member commission. He did not disclose his plans. The CFTC, which regulates swaps and futures markets, took an aggressive approach under the previous chairman, Gary Gensler, in writing dozens of new rules after the financial crisis. O’Malia was often critical of the policy.●
— From news services
● 8:30 a.m.: Consumer price index for June.
● 10 a.m.: Existing-home sales for June.
● Earnings: Apple, Comcast, Lockheed Martin, McDonald’s, Microsoft, Verizon Communications.