|Published : 18 Oct 2016, 14:48:50|
Netflix shares soar as video service posts jump in subscribers
Netflix has shaken off growth worries with new subscriber numbers that beat estimates and sent its shares soaring, the BBC reports on Monday.
The video streaming company added 3.2 million international customers in the last three months, far more than the 2 million analysts had predicted.
In the US, numbers rose 21 per cent to 370,000 as hit shows such as Stranger Things and Narcos won over more subscribers.
It helped quarterly revenues rise 31 per cent to $2.29 billion, sparking a 20 per cent jump in Netflix's share price.
In the three months to the end of September Netflix had about 83.3 million subscribers.
The company said on Monday that it plans to license content to existing online service providers in China rather than operate its own service in China in the near term.
Netflix has been expanding in international markets to counter slowing growth in the US. The service has a strong presence in more than 130 markets worldwide, except China.
Concern that Netflix's growth was slowing had overshadowed the company. Its shares had fallen about 13 per cent this year.
But in after-hours trading on Wall Street the shares jumped 20 per cent to about $119.
Analysts said that the figures should dispel fears that Netflix was running out of momentum, at least in the short term.
Neil Saunders, chief executive of retail consultants Conlumino, said: "We maintain our view that over the next few years international expansion will pay dividends, but for the current cycle Netflix will be very reliant on domestic performance to ensure it ends the fiscal year on a high note."