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Netflix Q2 results better than expected

2015-07-16 08:35:00| Telecompaper Headlines

(Telecompaper) Netflix added 3.3 million new streaming subscribers in the second quarter, including 0.9 million in the US and 2.4 million elsewhere in the world. As a result, the company reached a total 42 million customers in the US and 23 million abroad, more than it forecast for the quarter. Netflix said the growth was due in part to the success of its original programming. The launch of the third season of Orange is the New Black in June set a new record for viewing time. Almost 90 percent of subscribers are familiar with the company's own content. Netflix expects to spend around USD 5 billion next year on adding more to its own programming, while its first feature film will launch October this year, simultaneously on Netflix and in cinemas. Netflix also confirmed plans to launch in Japan in Q3, followed by Spain, Italy and Portugal in Q4. It aims to expand to China next year. The company's total revenues reached USD 1.6 billion in the second quarter, up 23 percent from a year ago. Average revenue per customer was up 5 percent, helped by the introduction of different forms of subscription. Marketing costs rose by 63 percent to USD 197 million, contributing to a 42 percent fall in the operating result to USD 75 million. Net profit was down 63 percent to USD 26 million. For the third quarter Netflix expects to add another 1.15 million customers in the US and 2.4 million at the international activities, resulting in total revenues of around USD 1.6 billion again. Losses from the international operations are expected to continue to grow due to the continuous expansion. 

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