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When Netflix presented its accounts for 2021 in January this year, the company estimated an increase in the number of subscribers in the first three months of the year of a total of 2.5 million subscribers – that is, one and a half million fewer than in the same quarter last year.
The TV spring begins here
Now the facts show that Netflix lost 200,000 subscribers in the first quarter. Netflix had 221.8 million subscribers at the end of 2021 and 221.6 million at the end of March. In the report, the company estimates that the number will fall to 219.6 million subscribers by the end of June this year. This corresponds to a decrease of two million subscribers in three months. It is the first time in over ten years that the subscription number falls for Netflix, writes CNBC.
Netflix explains much of the decline with the war in Ukraine with subsequent sanctions that have caused the company to lose 700,000 Russian subscribers. Netflix therefore estimates that it would otherwise have had an increase of half a million subscribers. But it would in any case be far from the estimate for growth the company itself made in January.
The stock halved from the top
At the end of November last year, the Netflix share was able to subscribe for the all-time high rating – 700 dollars. Since then, the price has halved. On Tuesday, the shares were traded for just under 350 dollars. The Netflix share was also one of the winners on Wall Street on Tuesday ahead of the presentation of the results for the first quarter. The stock woke up throughout the day with an increase of between three and four percent. It valued the group at 156 billion dollars or approximately 1370 billion kroner. But that was before the subscription numbers for the first quarter came.
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For in the trading on Wall Street, the share plunges 25 percent after the accounts for the first quarter were published at 22 Norwegian time.
When the stock exchanges closed, the share price was just over 348 dollars. One hour later, at 23 Norwegian time, the price in the after-sales service is 260 dollars. With 444 million outstanding shares in the company, this means that values of 39 billion dollars – or almost 350 billion kroner – have evaporated.
Notices clear headwind
With an operating margin of 20 percent and a net profit of $ 1.6 billion in the quarter, Netflix is still a very profitable company. But the growth in revenues of ten percent in the quarter is far weaker than in previous quarters. And will weaken further over the next three months, the company warns
In a statement to shareholders on Tuesday night, Netflix acknowledges that revenue growth has slowed significantly. “Streaming is the winner over linear, as we predicted, and Netflix titles are very popular globally. But our relatively high household penetration – when you include the large number of households that share accounts – combined with competition, creates headwinds for income growth ». The company adds that the large increase in flow during the pandemic “hid the picture until recently”.(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.
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