Swimming: South Africa's Tatjana Schoenmaker sets new world record in breastroke    Swimming: Dressel sets Olympic record in 100m fly    Ethiopia asks Algeria to correct Arab League's 'misperceptions' about GERD    Wildfire rages for 2nd day in Lebanon, spreads to Syria    ITIDA, USAID, AmCham join forces to promote entrepreneurship and startup ecosystem in Egypt    Russia to send delegation to Egypt in August for its mega industrial zone project    Fitch forecasts Egypt's real GDP growth of 5.5% in FY2022/23    US genocide expert to press Ethiopia on Tigray aid blockade    Egypt to receive 148 million coronavirus vaccine doses this year: Health minister    Qatar appoints ambassadors to Egypt and Libya    Blinken says negotiating process with Iran cannot go on indefinitely    Ethiopia says 2nd GERD filling 'done according to 2015 DoP' with Egypt, Sudan    New division to manage Tunisia's virus crisis    Over 1600 exporters applied to obtain their arrears through cash repayment initiative's 3rd stage : Finance minister    Live score: Aswan v Ahly (Egyptian Premier League)    Europe on vacation, but vaccinations not taking a break    Egypt's transport start-up SWVL preps for Nasdaq listing after merger with Queen's Gambit    Khartoum 'not ready' to negotiate with Ethiopia on GERD under same framework, labeling it 'a waste of time'    Father builds exoskeleton to help wheelchair-bound son walk    Economy grows amid the pandemic    Remembering Egyptian filmmaker Youssef Chahine: The perpetual rebel    Russian delegation to visit Egypt today for Sharm al-Sheikh, Hurghada security checks    Remembering Roushdy Abaza: Egyptian silver screen's first man    Egypt signs 4 gold exploration deals with Canadian firm    Russia flights to Egypt resorts of Sharm el-Sheikh, Hurghada to resume on August 9    Orange Egypt Introduces Amazon Prime Video    Tokyo Olympics: Cautious opening ceremony, shy start for Egyptians in competitions    Mallawi Museum in Upper Egypt holds recycling workshop for children during Eid Al-Adha    Egypt keen on stable tax policies to attract more investors: Finance Minister    Niagara Falls illuminated in Egyptian flag to mark 23 July Revolution anniversary    Thanaweyya Amma exams resume after Eid Al-Adha holidays    Sudan declares state of emergency as water goes beyond Merowe Dam capacity    Egypt, Japanese Olympic Committee discuss boosting sports cooperation    1 child orphaned every 12 seconds due to COVID-19-associated death: World Bank    Capital flows into EM keep recovering after March 2020 slump: Central Bank of Egypt    US emphasises AU's role in mediating Ethiopian damdispute    Ethiopia ready to resume dam talks with no legally binding agreements: Ethiopian official    Sunken city of Thônis-Heracleion in Egypt's Abu Qir bay yields new archaeological treasures    New films, concerts, and destinations for Eid Al-Adha holidays    Egypt, Oman discuss enhancing bilateral economic, investment relations    Al Ahly v Kaizer Chiefs: Cairo giants eye 10th CAF Champions League title    Etisalat Misr partners with Bassita to contribute to a Cleaner Nile    Tunisia hopes to have a UN role in resolving Egypt-Ethiopia dam dispute    Egypt denounces Ethiopia's move to start second filling of giant dam    APO Group enters new exclusive agreement with Getty Images on African press releases and images    On International Museum Day, Egypt opens two new museums at Cairo Airport    Egypt's Ahly is establishing a new stadium, expected to be 'sports complex'    Old Cairo's Al-Fustat will be revamped on Egyptian President's directives    







Thank you for reporting!
This image will be automatically disabled when it gets reported by several people.



Netflix shares drop as subscriber forecasts miss estimates
Published in Amwal Al Ghad on 19 - 04 - 2016

Streaming video service Netflix Inc forecast U.S. and international subscriptions would grow at a slower pace than Wall Street expected this quarter, sending its shares tumbling 8 percent in after-hours trading on Monday.
Netflix said it expected to add about 500,000 customers in the United States in the second quarter that ends in June, compared with Wall Street targets of 586,000, according to FactSet StreetAccount. The forecast includes a "modest impact" from the beginning of a price increase for its monthly movie and TV subscription service, the company said.
The company known for its original shows including "Orange is the New Black" and "House of Cards" said it expected to add about 2 million subscribers in markets outside the United States, versus analyst expectations of 3.5 million, according to FactSet. It also reported results for the first quarter, when subscriptions outpaced its own target.
Netflix is prone to large stock price swings as investors bet on the possible success of its mission to redefine television viewing around the world.
The company's long-term results depend in large part on how fast and profitably it expands. Netflix has launched in almost every country in the world, at a substantial cost, and now faces the task of adapting the service to different markets and cultures as competitors also rush in.
In January, Netflix went live in more than 130 countries, a huge global push by Chief Executive Reed Hastings to counter slowing growth in the United States.
Initial sign-ups were limited in some countries because the service at this point offers only English-language content and does not accept all of the local payment options, Hastings said on Monday.
"Over the next couple years as we further localize, we'll be able to see more opportunity," Hastings told analysts on a conference call.Netflix has not yet launched in China, where it has been exploring an entry for some time. It said on Monday it was "continuing discussions" and that "whatever we do," the Chinese market would have only a modest financial effect near-term.
The company previously promised "material" global profit in 2017 as it begins to reap the benefits of its costly expansion. A spokeswoman said Netflix is sticking with that forecast.
"I think that people who relied on unbridled international growth are beginning to have second thoughts, and the company now faces domestic competition that may limit its ability to grow domestic profitability," said Wedbush Securities analyst Michael Pachter, who has an "underperform" rating on the stock.
Amazon.com Inc announced it would offer its video streaming service as a standalone monthly subscription as it looks to drive membership in its Prime subscription service.
Netflix said its forecast for fewer international additions than the prior year was due to tough comparisons with the year-ago period when it had launched in Australia and New Zealand.
The company will start boosting rates for more than half of its U.S. members from May.
"We are rolling this out slowly over the year, rather than mostly in May, so we can learn as we go," the company said in a statement.
Netflix also said it expected to increase its spending on movie and TV content from about $5 billion in 2016 to more than $6 billion in 2017.
From January through March, Netflix added 6.7 million subscribers, bringing its worldwide total to 81.5 million.
Net income for the quarter was $28 million. Earnings per share came in at 6 cents, beating the forecast of 5 cents from analysts surveyed by Thomson Reuters I/B/E/S.
Over the past year, Netflix stock had risen more than 60 percent, making it the No. 3 performer on the S&P 500.
The company's shares were down 8 percent at $99.70 in after-hours trading on Monday.
Source: Reuters


Clic here to read the story from its source.