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

CTOnews.com, July 20 (Xinhua)-- US streaming giant Netflix announced its second-quarter results after US stocks opened on Wednesday. At present, the total number of paid subscribers worldwide has reached 238.39 million, Q2 has nearly $8.2 billion in revenue and a profit of more than $1.8 billion.

Netflix reported second-quarter revenue of $8.19 billion (CTOnews.com note: currently about 58.804 billion yuan), up 2.7% from a year earlier, but lower than the 3.7% growth in the previous quarter and below analysts' expectations of $8.3 billion. Affected by the news, Netflix fell more than 9% after hours.

In a letter to shareholders, Netflix said the revenue growth was partly due to Netflix's crackdown on password sharing, which is now implemented in more than 100 countries, and Netflix said it would launch it to almost all remaining markets from today. It is said that the number of newly registered users in each region has exceeded the number of unsubscribed users.

In addition, Netflix also announced the cancellation of the cheapest "no advertising program" in a number of countries and regions, including the United States, the United Kingdom, Canada and so on.

For example, the cheapest package in the United States, which used to be $9.99 (currently about 72 yuan), now starts at $15.49 a month. Of course, you can also choose the "ad included" package for $6.99 a month (currently about 50 yuan).

Netflix is also trying to expand beyond TV shows and movie streaming by becoming a distributor of mobile games. According to officials, it is developing a new hitherto undisclosed AAA game in a new in-house development studio, which will be launched on PC and the console platform.

In the second quarter of this year, Netflix's operating profit was $1.83 billion, a year-on-year growth of 22.3%, roughly the same as the guidance given in the previous quarter, while the growth rate was higher than the 21% Q2 net profit of the previous quarter of $1.488 billion, and diluted earnings per share of $3.29.

As of the end of the second quarter, the number of paid global streaming users of Netflix was 238 million, up 8% from the same period last year, which was significantly higher than in previous quarters; the number of new paid users on a month-on-month basis was 5.9 million, which was also significantly higher than in the first quarter. The number of fee-paying households achieved net month-on-month growth for four consecutive quarters.

At the end of the second quarter, Netflix's cash for operating activities was $1.44 billion, down from $2.179 billion at the end of the first quarter, and free cash flow also fell to $1.339 billion from $2.117 billion at the end of the first quarter.

For the third quarter, Netflix expects Q3 revenue to rise 7.5 per cent year-on-year to $8.52 billion; operating profit will rise 22.2 per cent year-on-year to $1.89 billion, roughly the same rate as in the second quarter; and third-quarter net income is expected to grow to $1.58 billion, or $3.52 per diluted share.

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