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Netflix said Wednesday that its quarterly revenue and subscriptions rose, as efforts to curb password sharing took hold.
- Earnings: $3.29 a share. That may not compare with the $2.86 per share expected by Refinitiv.
- Revenue: $8.20 billion. That may not compare with the $8.30 billion expected by Refinitiv.
The streaming giant said it added 5.9 million customers during the second quarter amid its broader crackdown on password sharing in the U.S. Netflix said it would roll out its new policy to the rest of its customers on Wednesday.
Netflix’s stock fell as much as 5% in after hours trading.
The company reported revenue of $8.20 billion, up 3% from $7.97 billion in the prior-year period. Net income of $1.49 billion climbed from $1.44 billion in the year-ago quarter.
The earnings report comes soon as investors look for more information on the rollout of Netflix’s ad-supported streaming tier and account-sharing crackdown.
However, Netflix said it was too early to report a breakdown of revenue from the ad-supported tier — which was introduced late last year — as well as the accounts that have come from the new sharing policy.
Netflix said Wednesday it expects a boost in revenue in the second half of the year as it begins “to see the full benefits of paid sharing plus the steady growth in our ad-supported plan.”
Netflix said it now forecasts revenue of $8.5 billion, up 7% year-over-year, for the third quarter. It attributed the expected revenue growth to more average paid memberships.
The company also anticipates paid net subscriber additions in the third quarter will be similar to the second quarter. Meanwhile, Netflix expects revenue growth in the fourth quarter to “accelerate more substantially” as the efforts to curb password sharing gain steam and as advertising revenue grows.
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