Netflix (NFLX) is booming: The online streaming service is growing faster than expected. But over all less profits have been made last quarter.
The online video streaming service is growing due to the success of shows like “Orange Is the New Black”, which is exclusive content on Netflix. In the second quarter Netflix number of customers grew higher than expected. The growing costs and the strong Dollar, which are reducing the profits did not stop investors from buying – Netflix went up almost 10 percent after market closing.
In the second quarter the company increased the number of it’s subscribers by 3.3 million and by that grew almost twice as strong as in the same time last year. Netflix hast 65.6 Million users world wide.
Especially the expanding in international markets is bringing new customers. Netflix plans to be available in more than 200 countries by 2016. 2.4 million of the 3.3 million new subscribers are coming from international markets.
Netflix CEO Reed Hastings already announced new goals: In fall Netflix will start in Japan in order to be able deliver it’s service globally. In spring Netflix started already in Australia and New Zealand. For China Netflix is checking it’s options as well.
The financial results are not as impressive as the growth in new customers. The revenue increased by 23% to 1.64 billion, but the profits went down 63% to 26 million. The strong Dollar, which reduces the profits from foreign countries, affects the overall profits additionally to the costs for the international expansion..