Netflix concluded the third quarter with higher revenue, breaking a six-month streak of subscriber decline.
In the period from July to September, the company increased its subscriber count by 2.41 million, to over 223 million, thanks to the success of series such as ‘Stranger Things’ and ‘Dahmer: Monster’.
In the previous two quarters, their number decreased by 970,000 and 200,000 respectively. In the U.S. and Canada, their number grew by about 100,000, in Europe, the Middle East, and Africa by 570,000, in Latin America by 310,000, and in the Asia-Pacific region by 1.43 million. In the fourth quarter, Netflix expects 4.5 million new subscribers.
– After a challenging first half of the year, we believe we are on the path to regaining growth momentum – they stated in a press release.
Net income decreased in the third quarter by 3.5 percent, to $1.4 billion or $3.1 per share. Revenue increased by 5.9 percent, to $7.92 billion. When excluding currency exchange rate changes, it increased by 13 percent.
The revenue growth was driven by a 5 percent increase in the average number of paid streaming memberships and a 1 percent increase in average revenue per membership.
In the fourth quarter, Netflix expects revenue of $7.8 billion, highlighting the negative impact of a stronger dollar which they estimate will also reduce revenue for the entire year by $1 billion.
