Netflix doubles profits and earns 16 million subscribers in a pandemic

San Francisco – The streaming entertainment platform Netflix announced on Tuesday some benefits between January and March of $ 709 million, which double those achieved in the same period last year, while adding 15.8 million new subscribers in everyone, coinciding with the COVID-19 pandemic.

In the first three months of its fiscal year, the Los Gatos (California) -based firm posted $ 5.777 million, up from the $ 4.52 billion registered in March last year, and its shareholders pocketed $ 1.61 per share against 0.79 from a year ago.

The increase of 15.8 million subscribers in just three months is the largest ever experienced by the company and doubles analyst expectations for this period.

In addition to significantly increasing paid subscriptions and thus billing, the COVID-19 pandemic and consequent confinement orders in much of the world have also allowed Netflix to reduce several of the costs significantly, including marketing costs.

Thus, the company’s gross profits – before interest and taxes – were during the past three months of $ 958 million, compared to the $ 459 million earned between January and March 2019.

So far this year, Netflix has also lowered its long-term debt by almost $ 600 million, down to its current $ 14,170 million.

By region, the streaming content company gained paid subscribers in all its markets, with the highest percentage increases recorded in Asia-Pacific (63% more subscribers compared to March 2019) and Latin America (more 25% of year-on-year growth).

Despite the fact that these are the fastest growing regions, the majority of Netflix’s business continues to be concentrated in Europe and, especially, in the United States.

The company projected an increase of 7.5 million paying subscribers over the next three months, although it warned that it is largely a “conjecture” that will depend on the partial or total lifting of the containment measures in each country, and also He said he expects growth to slow when it returns to normal.

Netflix accounts moderately encouraged investors on Wall Street, and the company’s shares rose 0.83% to $ 437.11 a share in post-close electronic trading on New York markets.

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