Video streaming company Netflix again announced its “blockbuster-class” profit on the 16th, MarketWatch reported.
Netflix said in its second-quarter earnings released on the same day that it posted sales of $6.15 billion. It is up 25 percent from $4.92 billion a year earlier. Net profit jumped 160 percent to $720 million from $270 million in the second quarter of last year.
The number of new subscribers surpassed 10.1 million in the second quarter. Following the first quarter, the number of new subscribers again exceeded 10 million. The quarantine due to COVID-19 has been a positive factor.
However, net income per share was 1.59 dollars, lower than Wall Street experts’ estimate of 1.82 per share.
Netflix profit rise despite experts prediction
Netflix said, “The first and second quarters maximized our potential benefits. This led to significant growth in the first half of this year. However, we expect the growth rate to decrease in the second half of 2020 compared to the previous year.
It also announced that the number of new subscribers in the third quarter is expected to reach 2.5 million. It is half the market forecast of 5.4 million people. Compared to new subscribers in the second quarter, it is one-fifth of that of new subscribers.
Shares are falling sharply with Netflix’s earnings announcement. The move comes as investors continue to sell on prospects of worsening third-quarter earnings.
Shares of Netflix fell 9.57 percent to $476.90 as of 5:17 in eastern U.S. city. Compared to the closing price of 527.39 dollars, the price dropped by 50.49 dollars in an hour.
The quarantine and work from home culture applied in all around the world play a big part in Netflix performance this year. Ironically, the pandemic has helped Netflix in regaining its composure. After previously expert predicted that the company will be on an endless fall down. As Disney and Apple launched their own streaming platform earlier this year.
