Subscribe free to our newsletters via your
. 24/7 Space News .

Netflix gains subscribers, shares surge
by Staff Writers
San Francisco (AFP) Jan 25, 2012

Netflix shares surged in after-hours trading Wednesday after the US video service announced earnings better than expected by analysts and that it gained subscribers in the fourth quarter.

The Los Gatos, California-based company posted a quarterly net profit of $41 million and earnings per share of 73 cents, well above the 55 cents per share forecast by Wall Street analysts.

Revenue rose 47 percent to $876 million, higher than the $859 million expected by analysts.

Netflix also said it had 24.4 million US subscribers at the end of December, up from 23.8 million at the end of the previous quarter.

Netflix shares were up 13.64 percent at $108 in after-hours trading.

Netflix chief executive Reed Hastings and chief financial officer David Wells said they expected a loss of between $9 million and $27 million in the current quarter due to increased international investment.

They said declining profits from the DVD-by-mail service and international and technology and development costs would likely result in a loss for the full year.

"As a result, we expect modest quarterly losses, as well as losses for the calendar year," they said.

Netfix has expanded to Britain, Canada and Latin America over the past two years, but Hastings and Wells said further international expansion was being put on hold for the time being.

"Until we achieve our goal of returning to global profitability, we do not intend to launch additional international markets," they said.

Netflix shares hit a high of $304.79 on July 13.

But the company suffered a backlash from members in September when it announced a price hike for customers who receive both its online video streaming service and its DVD-by-mail service.

In addition to raising prices, Netflix announced it would separate the two services, with the DVD rental service rechristened "Qwikster."

After customers voiced outrage and began quitting en masse, the company quickly backpedaled on the separation plan, but not the higher prices.


Related Links
Space Technology News - Applications and Research

Comment on this article via your Facebook, Yahoo, AOL, Hotmail login.

Share this article via these popular social media networks DiggDigg RedditReddit GoogleGoogle

Memory Foam Mattress Review
Newsletters :: SpaceDaily :: SpaceWar :: TerraDaily :: Energy Daily
XML Feeds :: Space News :: Earth News :: War News :: Solar Energy News

iPhone sales drive record quarter for Apple
San Francisco (AFP) Jan 24, 2012
Apple blew past forecasts and reported record quarterly net profit and revenue on Tuesday in the first quarter since the death of founder Steve Jobs, driven by strong sales of the new iPhone. Apple said its net profit more than doubled in the first quarter of fiscal 2012 to a record $13.06 billion while revenue soared to an all-time high of $46.33 billion from $26.74 billion a year ago. ... read more

Roscosmos Revives Permanent Moon Base Plans

Russia talks of permanent moon base

Montana Students Pick Winning Names for Moon Craft

Students rename NASA moon probes Ebb and Flow

Mars Rover Finds New Evidence of Water

U.S. Denies Link to Mars Mission Failure

Three Generations of Rovers with Crouching Engineers

Adjusting Robotic Arm on Amboy Rock

Toronto teens send Lego man into space: video

Volunteers Sought for Simulated Mars Mission and Study of 'Menu Fatigue'

2012 - Year of the Dragon

T-rays technology could help develop Star Trek-style hand-held medical scanners

China's satellite navigation sector annual output predicted to reach 35 bln USD in 2015

China plans to launch 21 rockets, 30 satellites this year

Shenzhou 9 Behind the Curtain

China Plans to Launch 30 Satellites in 2012

Russia Orbits Chibis Microsatellite

Russian Space Freighter to be Buried in Pacific

Progress Space Freighter Undocks from ISS

Russian cargo vessel takes off for space station

MT Aerospace wins contract for operation and maintenance of launch facilities' mechanical systems

Proton-M, Dutch Satellite Taken to Launch Pad

Delta 4 Launches Air Force Wideband Global SATCOM-4 Satellite

Stratolaunch Systems Announces Ground Breaking At Mojave

NASA's Kepler confirms 26 new planets

Earth's Cloudy Past Could Reveal Exoplanet Details

Re-thinking an Alien World

Scientists Discover a Saturn-like Ring System Eclipsing a Sun-like Star

First 'cloaking' of a 3D object announced

Netflix gains subscribers, shares surge

Fusion: X-ray laser zaps solid to 2 million degrees

Android grabs more tablet market share: survey

The content herein, unless otherwise known to be public domain, are Copyright 1995-2014 - Space Media Network. AFP, UPI and IANS news wire stories are copyright Agence France-Presse, United Press International and Indo-Asia News Service. ESA Portal Reports are copyright European Space Agency. All NASA sourced material is public domain. Additional copyrights may apply in whole or part to other bona fide parties. Advertising does not imply endorsement,agreement or approval of any opinions, statements or information provided by Space Media Network on any Web page published or hosted by Space Media Network. Privacy Statement