Shulou(Shulou.com)11/24 Report--

CTOnews.com, January 17 (Xinhua)-- Netflix plans to release its fourth-quarter results after the close of trading on Thursday, January 19, local time. According to official expectations, it will add 4.5 million subscribers in the fourth quarter of 2022.

2022 was the most difficult year in the history of Netflix. In recent years, subscriber growth has been uneven and unstable. The high growth during the outbreak could not be sustained, resulting in the first decline in the company's history, causing its share price to fall by more than half in 2022.

Netflix added 2.4 million subscribers in the third quarter of 2022 and said it expected to increase by 4.5 million in the fourth quarter. If this goal is achieved, the number of subscribers will reach a record 230.25 million. However, 4.5 million is still the weakest growth since 2014 and will fall sharply from the same period last year.

Wall Street expects Netflix's fourth-quarter revenue to grow 1.6 per cent year-on-year to $7.83 billion (currently about 52.696 billion yuan), higher than the company's forecast of $7.78 billion (currently about 52.359 billion yuan). Operating income, its main earnings indicator, is expected to fall 43 per cent from last year to $362.4 million, while diluted earnings per share will fall nearly 70 per cent to 41 cents. Nevertheless, the market consensus was higher than Netflix's quarterly operating profit of $330 million and earnings per share of $0.36.

Currently, Wall Street believes that Netflix will add 14 million subscribers in 2023, 5.8 million more than the 2022 plan, but still one of the slowest growth in the past decade. Driven by rising advertising revenues and rising prices, average revenue per user-which will be a more important measure of the impact of its new pricing hierarchy-is expected to continue to rise to an all-time high this year.

Netflix's revenue is expected to grow by more than 7 per cent in 2023 due to accelerated growth in subscribers. Netflix has said its goal is to achieve double-digit revenue growth in the long term, but the market does not think it will happen until 2024. Earnings will decline for the first time in seven years in 2022, but growth is expected to resume in 2023, with operating profit expected to jump by more than 11 per cent and earnings per share rising by 2.9 per cent, a modest increase.

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