Netflix Shares Dived 20% on Drop in Subscribers, Slower Revenue in 1Q
April 19 2022 - 4:40PM
Dow Jones News
By Denny Jacob
Netflix Inc. shares fell 20% to $277.03 in after hours Tuesday
after the company said that it lost subscribers and that revenue
growth has slowed considerably in the first quarter, raising
concerns about the streaming giant's ability to attract new users
amid a return to prepandemic conditions and greater
competition.
The Los Gatos, Calif.-based company reported a profit of $1.6
billion, or per-share earnings of $3.53, for the quarter compared
with a profit of $1.71 billion, or per-share earnings of $3.75, in
the same quarter a year ago. Analysts polled by FactSet expected
$2.90 a share.
Revenue rose 10% to $7.87 billion from $7.16 billion. Analysts
polled by FactSet expected $7.93 billion.
The company lost 200,000 subscribers from the prior quarter,
below its own projection of adding 2.5 million customers in the
period. The decline brought Netflix's paid global subscriber base
to 221.6 million, down from 221.8 million. It added that it
expected to lose 2 million subscribers in the current quarter.
Worldwide, Netflix said its business in Central and Eastern
Europe were hit by Russia's attack on Ukraine. It said shutting
down its service in Russia also resulted in the loss of 700,000
subscribers.
Netflix blamed password sharing among its members and increased
competition in the streaming space for creating what it called
"revenue growth headwinds."
Write to Denny Jacob at denny.jacob@wsj.com
(END) Dow Jones Newswires
April 19, 2022 16:25 ET (20:25 GMT)
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