Rise Netflix What it experienced during the epidemic came to a dramatic halt on Tuesday, with growth in depressed subscribers dropping its stake by 13 per cent.
The streaming service added just 3.98 million subscribers in the first quarter, with Wall Street estimated at 6.29 million and its own estimate below 6 million. The current quarter will be even more challenging, with Netflix forecasting one million new customers, a fraction of the 4.44 million planned by analysts.
Netflix has been warning for months that growth will slow after customers emerge from COVID isolation, but some expect it to stop dramatically. The first quarter of 2020 was strong with 15.8 million new customers in the company’s history, and Netflix’s pace was still at an astonishing pace in the fourth quarter.
The last three months, by contrast, marked the slowest first quarter of 2013, when Netflix added about 3 million customers.
Netflix blamed the “COVID-19 breakthrough” effect in 2020, which meant the epidemic supercharged its growth, and while everyone was stuck at home, something needed to be seen. Now it is affecting its 2021 results. The company said the lack of new projects also contributed to the decline. Unlike the previous quarter, Netflix was not as successful Bridgeton Oh Queen’s Gambit.
The company’s production was sluggish in the first quarter due to the effects of the epidemic, which led to production delays. Netflix was able to maintain its release schedule during the first months of the COVID blackout because it had already completed several shows. But the films and shows that were supposed to be in production in March, April and May had to be discontinued, resulting in a current shortage.
Netflix rejected the notion that competition played a role in its recession, noting that its growth was sluggish around the world. Disney +, HBO Max and Peacock are not competing with Netflix in many markets.
However, it faces more competitors than ever before, and some services are less expensive than Netflix, which raised its price in the US in October.
The best way
Despite the recession, Netflix It has the strongest financial position in its history. It had a net income of $ 71 1.71 billion, more than double what it was a year ago, and generated $ 692 million in free cash for the quarter.
Although part of this is due to production restrictions, it also represents a strong foundation. Its streaming service is profitable in many new markets such as South Korea.
Earnings for the quarter were 75 3.75 per share, up from 2.98.
Netflix plans to reduce its debt and repurchase $ 5 billion worth of shares.
Europe is a bright spot for Netflix. The streaming service added 1.81 million customers in Europe, the Middle East and Africa, leading the company. Lupine, A French heist thriller, was the hottest new series in service in the quarter.
Netflix fell to $ 480 in extended trading, the lowest in 2021. The stock rose 1.6 percent this year to close in New York on Tuesday.