4:14 PM
NEW YORK |
NEW YORK (Reuters) - Netflix Inc. (NFLX.O), the video rental company, reported better-than-expected profit and revenue, but issued an outlook for the second quarter that disappointed investors and sent shares down 5 percent.
Netflix posted first-quarter earnings of $60.2 million, or $1.11 a share -- up from $32.3 million, or 59 cents per share, in the period a year ago. Revenue rose 46 percent to $719 million, it said on Monday.
Analysts had expected revenue of $703.6 million, according to Thomson Reuters I/B/E/S.
Netflix's 3.3 million domestic subscriber additions -- plus another 29,000 new international subscribers -- brought its total to 23.6 million, underscoring its success so far in its transition from a mail-order business to one that increasingly delivers its movies and TV shows over the Web.
Its additions were at the high end of its own forecast range. It said it would likely end the second quarter with 24.9 to 25.9 million subscribers.
To attract more customers, Netflix has built its streaming offerings through a rush of content agreements. Recent ones include a Lionsgate deal for "Mad Men," a Fox deal for "Glee," and a two-year deal with CBS that adds shows such as "Cheers and "Frasier."
Netflix made an aggressive move into securing its own content, purchasing the distribution rights for the original series "House of Cards," starring Kevin Spacey.
Netflix shares fell to $238.20 following the earnings report, after closing at $251.67, down 55 cents, during the regular Nasdaq session. They have climbed almost 44 percent this year.
(Reporting by Paul Thomasch; Editing by Gary Hill)
Posts
