Profits pump Netlfix

Netco stock rises after profits surge

Netflix stock surged more than 18% Tuesday on news that profits nearly doubled last quarter as the homevid pioneer holds its own — at least for now — against rivals like Blockbuster, movie downloads and video-on-demand.

Wall Streeters are still waiting to see the impact a new movie-download service from will have on Netflix’s biz.

Earnings rose to $12.8 million from $6.9 million. Revenue soared 48% to $256 million as the company saw its subscriber count climb 58% to 5.6 million at the end of the third quarter.

Company also raised its revenue forecast for the fourth quarter and full year, and shares popped 18.59% to close at $4.29.

Subscriber acquisition costs, a key metric, rose to $45.32 per new sub from $36.33 a year earlier. Churn — how many subs cancel the service — eased to 4.2% from 4.3%.

For $17.99 a month, consumers can rent three DVDs at a time as often as they wish from a library of more than 50,000 titles.

Want to read more articles like this one? SUBSCRIBE TO VARIETY TODAY.
Post A Comment 0

Leave a Reply

No Comments

Comments are moderated. They may be edited for clarity and reprinting in whole or in part in Variety publications.

Fill in your details below or click an icon to log in: Logo

You are commenting using your account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s

More Biz News from Variety