The Crown” despite intensified competition. In the three months to the end of December, the number of paying subscribers rose by 8.5 million to just under 204 million, as Netflix announced on Tuesday after the US market closed. This was the first time that the 200 million user mark was broken.
The numbers clearly exceeded our own forecast and the expectations of the analysts.
The share rose in 2020 by around 67 percent. Another boost was the announcement that for the first time since 2011 it was considering buying back shares to maintain the price.
The profit was, however, at 542 million dollars (447 million euros) a little less than a year ago. Netflix is holding up against financially strong competitors who want to steal customers from the streaming market leader with newer video services with high investments. Disney +, for example, is experiencing very strong growth, but other services such as HBO Max or Peacock are also putting Netflix under pressure alongside more established rivals such as Amazon Prime or Hulu.
The y all benefit from the streaming boom caused by the Corona crisis.
The fact that cinemas remained closed because of the pandemic and that many people were stuck at home brought the company an enormous increase in customers. Overall, Netflix won – also thanks to the hype surrounding the “Tiger King” series – the record value of 37 million new subscriptions and increased sales by almost a quarter to around 25 billion dollars. Operating profit shot up 76 percent to $ 4.6 billion.
The outlook for the current first quarter was relatively cautious, with Netflix predicting an increase of six million to almost 210 million users. Most analysts had expected a higher forecast here. For comparison:
The streaming service Disney + of the Hollywood giant of the same name, which is likely to be the biggest rival, has already gained over 86.8 million users since it started in November 2019 and is currently only available in far fewer countries than Netflix. Disney also helped with strong discounts and special offers.
Netflix shares at record high – strong numbers and share buybacks
The y reached their highest level in mid-June last year at more than $ 575. At the close of trading on Wednesday, a Netflix share cost 586.34 US dollars, 16.85 percent more than the previous day.
The business figures clearly exceeded our own forecast and the expectations of the analysts. In terms of the number of paying subscribers, the company cracked the 200 million mark.
The driving force behind the price is also likely to be the announcement by management that it is considering buying back shares for the first time since 2011. “While Walt Disney is suspending the dividend, Netflix is preparing for share buybacks,” wrote analyst Todd of Bernstein Research with a swipe at the counterparty in the streaming business.
The expert estimates that Netflix should hold five billion dollars in liquidity.
The experts at the Swiss bank Credit Suisse added: “With the announcement that it will buy back shares from the second half of 2021, Netflix has put the final nail in the coffin of the stock market bears.”
The stock market value of the California-based company has risen to over $ 250 billion with the price rally.
Editor finanzen.at / dpa (AFX)
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Netflix share shoots doubledigit Netflix exceed sales expectations