Netflix obtained a net profit of 1,353 million dollars (1,148 million euros) in the second quarter of the year, 88% more than in the same period of 2020. According to the accounts presented by the company of series and movies on demand, the The number of subscribers has improved globally between April and June by 1.54 million, to reach almost 209.2 million subscribers. It is above the expectations that the firm had presented to the market, but well below the growth of the first quarter and even more so than the data of the previous year. In addition, the US firm has suffered the first setback in two years in its domestic market, as it has also reported the loss of 430,000 subscribers in the US and Canada. However, North America remains its largest fishing ground with 73.95 million subscribers.
Europe, the Middle East and Africa (known as Emea) is the second largest market for the platform of streaming, with 68.70 million paying users at the end of the third quarter (of which 190,000 new). Latin America (38.66 million subscribers, 760,000 more) and Asia Pacific (27.88 million, 1.02 million more) were behind.
Revenues for the Los Gatos (California, USA) -based company increased 19.4% in the second quarter to $ 7,341.7 million (€ 6,230 million). Thus, in the first half of 2021, the company obtained a net profit of 3,059.7 million dollars (2,596 million euros), 114% more than a year before, while its turnover increased by 21.7% , up to 14,505 million dollars (12,309 million euros). Looking at the third quarter of the year, Netflix expects to increase its number of subscribers by 3.5 million. “If we achieve our forecast, we will have added more than 54 million net subscribers in the last 24 months or 27 million on an annualized basis, which is consistent with our pre-covid net annual rate,” the company said in a statement.
This has not been the only message focused on the expansion of the business that Netflix has launched, aware that the subscriber figures have lost the brightness of a year ago. In the first half of 2020, the world’s largest platform for streaming added 26 million users. And analysts’ forecasts for the third quarter of this year were for about six million new subscribers. “There is a bit of a rough sea in our growth,” admitted the multinational’s chief financial officer, Spencer Neumenn, in statements collected by Bloomberg. “In general terms, the business is behaving well,” he added. The company insists that it has room for improvement because the transition from linear television to content in streaming it has only just begun.
The US shares, which presented their results after the close of the trading session on Tuesday, began trading on Wednesday with losses of 6.6%. With the passing of the hours, the fall has been cut by more than two points and by half a day it lost 4.3%. So far this year, the shares have lost more than 2% of their value: Netflix had already warned of a slower pace in new subscriptions, but investors did not expect such an abrupt slowdown and have penalized the company in the markets.
In fact, the behavior of new accounts in the first half of the year has been the worst since 2013, when Netflix was only present in just over half of the countries where it currently provides its service. The platform has justified that it is because the evolution of the pandemic has caused less television consumption, as the strict confinements that characterized the first phases of the fight against covid-19 have disappeared. It has also ensured that some of its most successful contents have suffered delays in production, and therefore in broadcast, due to illness.
Looking ahead, Netflix recalls that it is only present in 20% of households with broadband access in the world and that account cancellations have also slowed compared to pre-pandemic times. His other great hope is in video games, a service that he hopes to launch in the next 12 months to attract and retain customers. “We envision it as a central part of our subscription offering,” Greg Peter, Product Manager for the Californian firm, said Tuesday. The service will copy the model of audiovisual content, with its own production and rights to games created by other firms. The new product will also be a way of trying to differentiate itself from growing competition, with more and more companies (and giants such as Disney, Amazon, Warner or Apple) copying the on-demand content model in which Netflix pioneered and in which Despite everything, it remains a world leader.