Netflix produces unexpected 4Q profit as Internet video service gains 2 million US subscribers
SAN FRANCISCO – Netflix’s Internet video service has added 2 million U.S. subscribers during the final three months of the year to produce an unexpected profit for the company.
The performance announced Wednesday validates investors’ recent confidence in Netflix Inc., whose volatile stock had surged by more than 30 per cent since early December. The stock soared another 29 per cent after the fourth-quarter numbers came out.
The surge in new customers left Netflix with 27.1 million U.S. subscribers to its service that streams movies and TV shows to Internet-connected devices.
Netflix earned nearly $8 million, or 13 cents per share. That was a 78 per cent drop from the same time in the previous year.
But investors had been bracing for a loss as Netflix’s expenses rose.
Revenue climbed 8 per cent to $945 million.
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