Netflix had revenue of $ 30 billion last year, up five billion from 2020. Profit before tax ended at $ 5.8 billion, a sharp increase from $ 3.2 billion the year before, according to a statement from the company shortly after Wall Street closed at 22 Norwegian time.
Nevertheless, the share price falls 20 percent, equivalent to around 100 dollars per share, in after-sales because the market believes the growth in the number of subscribers disappoints.
Margins under pressure
The fourth quarter in isolation also shows a much weaker profitability than in the previous quarters. The operating margin in the last quarter of last year was 8.2 per cent against well over 20 per cent in the previous three quarters – and also far weaker than the operating margin of 14.4 per cent in the fourth quarter of 2020.
The entertainment giant went out of 2021 with 222 million paying subscribers. This is an increase of 8.3 million in the fourth quarter alone – weaker than the growth of 8.5 million subscribers in the corresponding quarter in 2020.
Netflix writes in a stock exchange announcement that competition for consumer time has only “intensified in the last 24 months as entertainment companies around the world develop their own power supply. Although this additional competition may affect our marginal growth somewhat, we continue to grow in all countries and regions where these new power options have been launched. “
The company further writes that “even in a world of uncertainty and increasing competition, we are optimistic about our long-term growth prospects” and adds that “we achieved several milestones in 2021: we had this year’s largest TV show (Squid Game), our “the biggest movie releases of all time (Red Notice and Don’t Look Up) and Netflix was the most Emmy-winning and most nominated TV network and the most Oscar-winning and nominated film studio in 2021.”(Terms)Copyright Dagens Næringsliv AS and / or our suppliers. We would like you to share our cases using a link, which leads directly to our pages. Copying or other use of all or part of the content may only take place with written permission or as permitted by law. For additional terms look here.