Netflix obtained a net profit of 2,761.4 million dollars (2,272 million euros) in 2020, which represents an improvement of 47.9% compared to the result recorded a year earlier by the American film and series distribution company on-line, which increased its number of subscribers by 36.5 million in the year of the pandemic, reaching 203.6 million subscribers.
“We believe that we no longer require foreign investment to finance our day-to-day operations,” said the platform in a statement after which its shares rose 10% in transactions after the closing of Wall Street.
Despite the annual growth, in the last quarter of 2020, Netflix’s profit fell by 7.6% year-on-year, to 542.15 million dollars (446 million euros), which represents a decrease of 31% compared to your result for the immediately preceding three months.
Between October and December, Netflix increased its subscriber base worldwide by 8.5 million, with particularly strong momentum in Europe, the Middle East and Africa (EMEA), where it already has 66.7 million paying users, compared to 73.9 million in North America, 37.5 million in Latin America and 25.5 million in Asia Pacific. The platform practically doubled its subscribers in two years: from 111 million in 2018 to almost 204 million at the end of 2020. The average income per subscriber went from $ 9.88 to $ 11.02, the company said. For the first quarter of 2021 it expects to add another 6 million subscribers.
The company’s revenues for the whole of 2020 increased 24%, to $ 24,996 million (€ 20,566 million), including a 21.5% growth in fourth-quarter revenue, to $ 6,644.4 million ( 5,467 million euros).
Looking at the first quarter of 2021, Netflix expects to increase its revenues by 23.6% year-on-year, to 7,129 million dollars (5,865 million euros), with a net profit of 1,355 million dollars (1,115 million euros), which it would be 91% more than a year before, and a net increase of 6 million in the number of subscribers, to 209.66 million.
Like all tech giants, Netflix benefited from travel restrictions imposed in many countries to curb coronavirus infections. But it has also faced increased competition since last year. Disney + surpassed 85 million subscribers in one year and other video services also increased their number of customers.
“It’s a great time to consume entertainment with many options. From classic television to video games and even the content of social networks on YouTube and TikTok ”, the platform commented. “We will continue working to increase our time spent on the screen against large competitors,” he added.