Netflix produces unexpected Q4 profit

Netflix‘s internet video service warded off stiffer completion to add 2 million U.S. subscribers during the final three months of the year to produce an unexpected profit for the company. The fourth-quarter performance announced Wednesday validates investors’ recent confidence in Netflix, whose volatile stock had surged by more than 30% since early December. The stock […]

Netflix‘s internet video service warded off stiffer completion to add 2 million U.S. subscribers during the final three months of the year to produce an unexpected profit for the company.

The fourth-quarter performance announced Wednesday validates investors’ recent confidence in Netflix, whose volatile stock had surged by more than 30% since early December. The stock soared another $34.49, or 33%, to $137.75 in extended trading after the numbers came out. If the shares trade similarly in Thursday’s regular trading session, it will propel Netflix’s stock a new 52-week high.

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’s expansion also gathered more momentum as the company ended the quarter with an additional 1.8 million subscribers outside the U.S.

That means Netflix entered this year with 33.3 million video-streaming subscribers worldwide.

Netflix also still has 8.2 million customers signed up for the DVD-by-mail rental plans that launched the company’s early success. Although Netflix is phasing out the disc service, the company hung on to more of the DVD subscribers than it anticipated during the fourth quarter. Netflix lost 382,000 DVD subscribers during the quarter.

Netflix earned nearly $8 million, or 13 cents per share. That was a 78 per cent plunge from net income of $35.2 million, or 64 cents per share, at the same time last year.

Taking their cue from Netflix’s own projections in October, analysts polled by FactSet had predicted the company’s would lose 12 cents per share as expenses for the international expansion and video-licensing rises outpaced revenue growth.

Revenue climbed 8 per cent from the previous year to $945 million.

Netflix appears confident that its recent momentum will carry into the current quarter, which will be highlight by the Feb. 1 debut of a much-anticipated TV series called House of Cards produced exclusively for the video streaming service. The series stars Academy Award-winning actor Kevin Spacey.

Media Articles

Social Scanner: Social gets serious about shopping

Three big social networks make moves in ecommerce, plus Vine gains traction and Target partners with popular YouTubers

Vancouver homeless campaign generates buzz worldwide

Convertible bus benches seen as antidote to anti-homeless doorway spikes

CRTC fines four companies for telemarketing violations

CRTC imposes penalties for calls made to consumers on Do Not Call List

CRTC to meet with telecom/cable industry over paper bill fees

Fact-finding study finds “wide variance” on how such fees are approached

Sponsored content relies on, among other factors, storytelling, site credibility: IAB

New study outlines consumer attitudes towards native advertising

Alan Cross goes back to The Edge

New role will see the resurrection of The Ongoing History of New Music at the Corus-owned station which hopes to lure back lapsed listeners

Netflix turns its eye to international expansion

Streaming video company will also continue its aggressive pursuit of original content

Elvis spotted around GTA in new campaign

It’s viva… Blue Mountain, as celebration of all things Elvis marks 20th anniversary

Bell Media refreshes The Loop, promotes sharing

Revamp comes less than two years after rebrand of the former Sympatico