By Dawn Chielewski and Lisa Richwine
Los Angeles (Reuters) -NetFlix exceeded the quarterly expectations of Wall Street and offered a bullish perspective of income on Thursday, signaling confidence in the middle of economic uncertainty surrounding the erratic tariff plans of President Donald Trump.
The company’s shares increased by 4.4% after opening hours to $ 1,016.55.
The streaming giant also said that its co-founder Reed Hastings had left his position as executive president to become the non-executive chairman of the board of directors, “part of the natural evolution of our leadership structure and our succession planning”.
Netflix declared a turnover of $ 10.54 billion for the first quarter, asking the estimates of past analysts of $ 10.52 billion, according to data compiled by LSEG.
The profits diluted by share of $ 6.61 exceeded the consensual estimates of $ 5.71. The company has published successes such as the limited series “Adolescence”, the dramatic thriller “Zero Day” and the unicated series “Island temptation” during the quarter.
Netflix, the dominant streaming service with more than 300 million global customers, continued to register subscribers in markets around the world, even though it increases prices. It also builds an advertising company to diversify income.
For the first quarter, Netflix declared that income and operating income has beaten its own advice “due to the slightly higher subscription and advertising revenues and the expenses calendar”. He said that advertising revenues were “still very low compared to subscription income”.
For the future, the company provided that revenues would increase to $ 11.04 billion from April to June, above the analyst’s consensus of $ 10.90 billion.
For the year, Netflix reaffirmed its income forecasts between $ 43.5 billion and 44.5 billion dollars “, which requires growth of healthy members, a higher subscription price and coarse doubling of our advertising revenues.”
Analysts have raised the possibility that Trump’s economic policies can lead to a recession that obliges consumers to reconsider their expenses in streaming.
“Having a diversified business model thanks to the subscription and a level based on slow but growing advertisements will reduce the risks of stricter consumption expenses that could cause cancellations,” said the PP forecast analyst, Paolo Pescatore.
“Netflix is an essential service in user lives. This will be the last subscription that users will cancel given the large and extent of the programming,” said Pescatore.
Consumers have flocked to the level of Netflix at a lower price and supported by advertising since its launch at the end of 2022. The company declared that this version of its service represents 55% of new registrations in the countries where it is available.
