Netflix’s horrible run this year persists as its subscribers continue to drop like flies. In the first quarter of the year, the streaming giant lost 200,000 subscribers, marking the first such drop in a decade. Now it has revealed in its second quarter 2022 results that it lost 970,000 subscribers in the three months ending June 2022.
It’s a bittersweet thing for Netflix to swallow. While that number is well below the two million the company had expected to lose in Q2, it’s still the biggest quarterly loss in Netflix history.
Regionally, Netflix lost 1.3 million subscribers in the United States and Canada, around 770,000 in Europe and West Asia, and surprisingly grew by around 1 million subscribers in the Asia-Pacific region. Currently, the streaming giant has 220.67 million subscribers. Its stock, which has fallen sharply this year, rallied after the company announced it had lost far fewer subscribers than it had earlier expected.
Netflix shares are currently listed at $201.63.
As for its performance in other areas during the quarter, Netflix successfully beat Wall Street estimates for its diluted earnings per share (EPS). The same came at $3.20, beating the estimate of $2.94 per share. Its revenue, however, is well below the $8.035 billion estimated at $7.97 billion for the last three months.
It also posted 8.6% year-over-year growth in the second quarter and is expected to pocket $7.83 billion in the next quarter. Its operating profit rose from $1.9 billion in the first quarter to $1.5 billion in the second quarter. Its net cash for the quarter was $103 million.
Netflix is looking to avoid a hat-trick of quarterly losses in its subscriber base with its soft prediction to add 1 million new subscribers in the current quarter. This, although below the estimated 1.8 billion, will effectively undo some of the significant losses the company has suffered over the past six months.
Some of the losses were attributed to factors such as rising inflationary pressures and the Russian invasion of Ukraine since February (this resulted in the loss of 700,000 Russian customers in the first quarter of the year).
During the earnings call, Netflix co-CEO Reed Hastings said that “it’s hard to lose a million [subscribers] and calling it a success,” but added that the company is “very well prepared for next year.”
“This freedom means we can deliver big movies straight to Netflix, without the need for extended or exclusive movie windows, and allow members to binge-watch TV if they want, without having to wait for a new episode comes out weekly,” the company said. said.
“This focus on choice and control for members influences all aspects of our strategy, creating what we believe will be a significant long-term business advantage.”
It remains to be seen whether Netflix’s new business strategy, which includes a new, cheaper, ad-supported tier in partnership with Microsoft, and paid password sharing, will help him reverse his fortune.
Netflix posts biggest quarterly loss in Q2 2022 losing 970,000 subscribers, growth in Asia-Pacific
Source link Netflix posts biggest quarterly loss in Q2 2022 losing 970,000 subscribers, growth in Asia-Pacific