Streaming giant Netflix continues to boom thanks to hit movies like Bird Box
Netflix recorded significant growth in the number of users in 2018 and was able to increase revenue. However, profit declined due to large investments.
The online video service Netflix continued to record strong growth at the end of the year thanks to hit films such as "Bird Box". Worldwide, 8.8 million new paid subscriptions were recorded in the three months to the end of December. The company announced this on Thursday after the U.S. stock exchange closed in Los Gatos, California. In the U.S. home market, 1.5 million new customers were added. Internationally, there were 7.3 million new customers. In total, the streaming giant brought it to a good 139 million paid memberships at the end of the year.
Netflix scored in the final quarter with productions such as "Bird Box" with Hollywood star Sandra Bullock. According to the company's estimates, the thriller, which has been available worldwide since December 21, was accessed by more than 80 million user accounts in the first four weeks. The streaming service, which is best known for hit series like "House of Cards," also enjoyed further success with other films like "Roma" and "The Christmas Chronicles.
Significant drop in profits
Business was also good: Netflix increased its revenues by more than a quarter year-on-year to $4.2 billion in the final quarter. However, the company fell slightly short of Wall Street's expectations. The profit fell by 28 percent to 134 million dollars. Netflix, however, exceeded forecasts. For its international expansion and to keep rivals such as Amazon Prime or Hulu at bay, Netflix is investing a lot of money - which brings growth, but eats into profits.
The figures were not well received by investors - the share price fell sharply after trading hours. However, the share price had previously also risen sharply, and a price increase in the USA was the most recent boost on the stock market. The outlook for the current quarter was the most likely cause for complaint. Netflix missed analysts' expectations in terms of both revenue and profit.
For the full year 2018, revenues grew by more than a third to $15.8 billion. Net income was $1.2 billion, more than double the previous year's figure. (SDA/DPA)
