With slightly higher revenues than expected, Netflix, the largest streaming provider in the world, posted lower profits in the first quarter. The US internet content provider, also based in Hungary, said in a quick report published after the New York Stock Exchange closed Tuesday:
Revenue rose 27.6 percent year-on-year to $ 5.77 billion, and profits more than doubled to $ 709 million. Diluted earnings per share increased to $ 1.57, compared to 76 cents the previous year.
Analysts had expected revenues of $ 5.76 billion and earnings per share of $ 1.65 for the first quarter. Netflix indicated that its international revenues were negatively affected by the appreciation of the dollar.
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Netflix was one of the companies that took advantage of the novel coronavirus epidemic. Compared to its own forecast, it gained more than double the number of new subscribers – 15.77 million instead of seven million – in the January-March period, as consumers were forced into quarantines due to the pandemic, spending much more time in front of screens, and spending time watching differently. Movies and series.
Its revenue will increase by 22.8 percent to more than $ 6 billion, and its earnings will rise to $ 820 million, or $ 1.81 per share.
The second half of the year is likely to be weaker after the authorities lifted strict measures restricting freedom of movement and the resumption of life after the pandemic. Compared to the second half of last year, fewer new subscribers are expected, especially since many of those interested in Netflix’s content have already become customers.
