Actions of Netflix are It is strongly higher in exchanges after opening hours of Thursday, April 17, while the largest online streaming platform in the world declared income from the first quarter that beat the consensus and income from Wall Street which were in line with expectations.
Netflix leaders said they saw no impact of President Trump’s prices that to have Take a look at the macroeconomic image – And don’t expect he Be a major factor in the future.
“We pay particular attention, clearly, to the feeling of consumers and where the wider economy evolves, but depending on what we see by exploiting the company at the moment, there is nothing Really significant to note, “said Greg Peters, Netflix co-PDG, during a call conference With analysts to discuss income from the first quarter.
Peters said that the company is also comforting that “entertainment, historically, was quite resilient in the more difficult economic period”. It is because if people are happy or sad, they always watch television and films.
In past recessions, Netflix was “generally quite resilient,” added Peters, which means that the company expects to do the same if a recession comes today.
In addition, Peters stressed that Netflix offers advertising support $ 7.99 a month old Plan on its greatest markets, who is An “incredible entertainment value” which “also gives us more resilience”.
“It’s an accessible price, and we Really Expect that the demand for entertainment remains strong, “said Peters.
Regarding macroeconomic uncertainty reducing advertising revenues, Peters said that advertising remains a small part of the front line line so that it would not have a big impact. “This smallness probably provides us with insulation for market quarters at the moment,” he said.
Netflix is the prevailing online streaming platform with 302 million subscribers, followed by Video Prime (more than 200 million) and Disney + (125 million).
Netflix reported first trimester Net income of $ 2.89 billion, or $ 6.61 per share diluted, compared to $ 2.33 billion, or $ 5.28 per share similar quarter one year old Gains. Turnover reached $ 10.54 billion, compared to $ 9.37 billion. Netflix should earn $ 5.66 per share over a turnover of $ 10.5 billion, according to a consensus of analysts estimates.
Financial director Spencer Neumann declared on the call that the growth of subscribers was “healthy” in the first quarter, without developing. THE that has just concluded The district has been the first time that Netflix has not revealed its new subscriber growth figures.
The share increased by 2.7% after working hours to $ 999.
Netflix said that the founder Reed Hastings retires as an executive president to be chairman of the board of directors and non -executive director.
Learn more:: Netflix sees 19 million new subscribers in the fourth quarter
Netflix aims at 1 dollars billion
This week, the Wall Street Journal reported This Netflix Internally, it’s a shot For a market capitalization of 1 Billion by 2030. He hopes to double the income By then too, about $ 80 billion, And Win $ 9 billion in world announcements sales.
The report said US advertising revenues this year is estimated to 2.15 billion dollarsquoting Emarketer figures. Netflix does not disclose its advertising numbers. Leaders I also want to triple the Netflix operating profit at $ 30 billion by 2030said the report, and increase The subscriber has 410 million.
Ted Sarandos, Netflix Co-PDG, said internal executives TO DO Discuss “long -term aspirations”. But he said “It is It is not the same as forecasts ”, adding that its operating plans remain the same as its external forecast guidelines.
However, Peters added that Netflix sees potential for growth. Even with more than 300 million subscribers households, translating by an audience of more than 700 million people, it is still a small tranche on the world market.
“We have a lot of space to increase our engagement, our income, our profits and … become the most popular entertainment company,” said Peters.
Morningstar analyst Matthew Dolgin said in a research note This week, the financial aspirations of Netflix reported by the journal “seem coherent” with the previous disclosure of management. However, these objectives seem to be “stretched” objectives and will be “difficult to achieve,” said the analyst.
Dolgin said that Netflix has succeeded by following an organically growth strategy from zero rather than costly acquisitions of traditional media companies.
THE company too was “wise” not to spend too much by not biding on a regular list of main live sports programsThe analyst said, Because he should have paid too much to attract major sports leaguesThe analyst said.
“These decisions now give Netflix the advantage of not having to manage an activity inherited in decline, and it is not overwhelmed by expensive sports contracts or a base of subscribers which depends on the conservation of sports rights,” Dolgin wrote.
