Netflix lost nearly 1 million paid subscribers since April
Wednesday, 20 July 2022 (13:14 IST)
Washington: The US-based streaming service Netflix announced on Wednesday that in the second quarter of the year it has witnessed a paid membership drop of 970,000 users, which the company expects to offset next quarter with an uptick of 1 million.
In late April, Netflix reported losing 200,000 paid subscribers overall in the first quarter and 700,000 users in Russia after the company left the Russian market. The company forecast a net loss of 2 million subscribers in the second quarter, triggering a 25% crash of shares.
"We slightly under-forecasted global paid net adds in Q2 (-1.0m vs. -2.0m forecast and compared to +1.5m in the year ago quarter)," Netflix said in a shareholder letter.
In the third quarter, Netflix is expecting a 1-million increase in new subscribers, which will compensate Q2 losses, bringing the total number of paid members back to 221.67 million.
Netflix's net income in the second quarter has climbed by 6.5% compared to the same period last year, reaching $1.441 billion, the statement added.
The company's year-on-year operating income has depleted by 14.6% to $1.578 billion, while diluted earnings per share grew to $3.2 from $2.97 a year earlier, exceeding the company's forecast of $2.96. Year-on-year revenue hiked by 8.6%, reaching $7.97 billion, slightly below anticipated amount of $8.03 billion.
The company is predicting the third-quarter revenue to upswing by 4.7%, with the total year-on-year income reaching $7.838 billion. (UNI)
