Netflix shares surged more than 12 per cent on Wednesday after the company reported an almost 20 per cent annual jump in net income in the third quarter.
The world’s largest streaming service reported a net profit of nearly $1.7 billion in the three months to the end of September. It was up 13 per cent from the second quarter of this year.
The company earned revenue of more than $8.5 billion during the quarter, up nearly 7.7 per cent on an annual basis, meeting analysts' estimates.
Earnings for each share rose 20.3 per cent on a yearly basis to $3.73, exceeding an estimate of $3.49.
“The last six months have been challenging for our industry given the combined writers and actors strikes in the US,” Netflix said.
“While we have reached an agreement … we are committed to resolving the remaining issues as quickly as possible so everyone can return to work, making movies and TV shows that audiences will love."
The company’s stock surged 12 per cent to $388.02 a share in after-market trading. The company’s shares have surged more than 17 per cent since the start of this year.
The number of paid subscribers jumped 10.8 per cent year on year to nearly 247.15 million in the three months to September 30, beating the 243.88 million estimate, according to StreetAccount.
Netflix said it added 8.76 million new streaming subscribers during the July-September period.
It attributed the increase in paid membership to factors including the introduction “of paid sharing, strong, steady programming and the continuing expansion of streaming globally”.
The Californian company’s operating income surged 25 per cent annually to $1.9 billion, slightly above its guidance forecast, mainly due to the revenue rise.
“Our goal is to accelerate revenue growth, expand operating margin and deliver growing free cash flow. Nine months through the year, we are well positioned to meet these objectives in 2023,” Netflix said.
The company bought back $2.5 billion worth of shares in the September quarter and increased its buyback authorisation by $10 billion.
Netflix “posted its strongest quarterly subscriber growth this year as well as the fastest revenue increase in five quarters”, Jesse Cohen, a senior analyst at Investing.com, told The National.
“Netflix’s quarterly results demonstrated that the company is benefiting from the launch of its lower-cost, ad-supported basic service tier. and intensifying efforts to crack down on illegal password-sharing.”
Netflix said it now expects revenue of $8.7 billion, up nearly 11 per cent on an annual basis, for the fourth quarter. It attributed the anticipated sales growth to an increasing number of paid memberships.
It predicted a free cashflow of nearly $6.5 billion in the current fiscal year, up from our its previous forecast of at least $5 billion.
In terms of profitability, Netflix updated the 2023 financial year’s operating margin guidance forecast to 20 per cent, the high end of its prior 18 per cent to 20 per cent prediction.
Netflix said the adoption of its advertisements plan continues to grow among its subscribers. The ads plan membership surged almost 70 per cent on a quarterly basis.
“While we have much work to do to build out this [ads] business, we are making good progress and laying the foundation for what we believe should be a multibillion-dollar revenue stream over time," Netflix said.
“Our immediate priority is building our ad membership so that Netflix becomes an essential buy for advertisers, which is key for advertising to become material to our business."
Some of the prominent English titles in the past quarter included One Piece, The Witcher and Top Boy, and other language hits included Dear Child (Germany), Sintonia (Brazil), Guns and Gulaabs (India) and Class Act (France).
The company’s net cash generated by operating activities in the past quarter stood at $2 billion, while its free cash flow reached $1.9 billion.
It finished the quarter with gross debt of $14 billion, largely unchanged from the prior quarter and within its targeted range of $10 billion to $15 billion. Cash and short-term investments totalled $8 billion.
Uefa Nations League: How it works
The Uefa Nations League, introduced last year, has reached its final stage, to be played over five days in northern Portugal. The format of its closing tournament is compact, spread over two semi-finals, with the first, Portugal versus Switzerland in Porto on Wednesday evening, and the second, England against the Netherlands, in Guimaraes, on Thursday.
The winners of each semi will then meet at Porto’s Dragao stadium on Sunday, with the losing semi-finalists contesting a third-place play-off in Guimaraes earlier that day.
Qualifying for the final stage was via League A of the inaugural Nations League, in which the top 12 European countries according to Uefa's co-efficient seeding system were divided into four groups, the teams playing each other twice between September and November. Portugal, who finished above Italy and Poland, successfully bid to host the finals.
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Biog:
Age: 34
Favourite superhero: Batman
Favourite sport: anything extreme
Favourite person: Muhammad Ali
UAE squad
Esha Oza (captain), Al Maseera Jahangir, Emily Thomas, Heena Hotchandani, Indhuja Nandakumar, Katie Thompson, Lavanya Keny, Mehak Thakur, Michelle Botha, Rinitha Rajith, Samaira Dharnidharka, Siya Gokhale, Sashikala Silva, Suraksha Kotte, Theertha Satish (wicketkeeper) Udeni Kuruppuarachchige, Vaishnave Mahesh.
UAE tour of Zimbabwe
All matches in Bulawayo
Friday, Sept 26 – First ODI
Sunday, Sept 28 – Second ODI
Tuesday, Sept 30 – Third ODI
Thursday, Oct 2 – Fourth ODI
Sunday, Oct 5 – First T20I
Monday, Oct 6 – Second T20I
Living in...
This article is part of a guide on where to live in the UAE. Our reporters will profile some of the country’s most desirable districts, provide an estimate of rental prices and introduce you to some of the residents who call each area home.
The Specs
Price, base Dh379,000
Engine 2.9-litre, twin-turbo V6
Gearbox eight-speed automatic
Power 503bhp
Torque 443Nm
On sale now
More coverage from the Future Forum
The bio
Who inspires you?
I am in awe of the remarkable women in the Arab region, both big and small, pushing boundaries and becoming role models for generations. Emily Nasrallah was a writer, journalist, teacher and women’s rights activist
How do you relax?
Yoga relaxes me and helps me relieve tension, especially now when we’re practically chained to laptops and desks. I enjoy learning more about music and the history of famous music bands and genres.
What is favourite book?
The Perks of Being a Wallflower - I think I've read it more than 7 times
What is your favourite Arabic film?
Hala2 Lawen (Translation: Where Do We Go Now?) by Nadine Labaki
What is favourite English film?
Mamma Mia
Best piece of advice to someone looking for a career at Google?
If you’re interested in a career at Google, deep dive into the different career paths and pinpoint the space you want to join. When you know your space, you’re likely to identify the skills you need to develop.
The five pillars of Islam
1. Fasting
2. Prayer
3. Hajj
4. Shahada
5. Zakat
Ms Yang's top tips for parents new to the UAE
- Join parent networks
- Look beyond school fees
- Keep an open mind
Schedule:
Pakistan v Sri Lanka:
28 Sep-2 Oct, 1st Test, Abu Dhabi
6-10 Oct, 2nd Test (day-night), Dubai
13 Oct, 1st ODI, Dubai
16 Oct, 2nd ODI, Abu Dhabi
18 Oct, 3rd ODI, Abu Dhabi
20 Oct, 4th ODI, Sharjah
23 Oct, 5th ODI, Sharjah
26 Oct, 1st T20I, Abu Dhabi
27 Oct, 2nd T20I, Abu Dhabi
29 Oct, 3rd T20I, Lahore
Dubai Rugby Sevens, December 5 -7
World Sevens Series Pools
A – Fiji, France, Argentina, Japan
B – United States, Australia, Scotland, Ireland
C – New Zealand, Samoa, Canada, Wales
D – South Africa, England, Spain, Kenya
MATCH INFO
Champions League last 16, first leg
Tottenham v RB Leipzig, Wednesday, midnight (UAE)
How to avoid crypto fraud
- Use unique usernames and passwords while enabling multi-factor authentication.
- Use an offline private key, a physical device that requires manual activation, whenever you access your wallet.
- Avoid suspicious social media ads promoting fraudulent schemes.
- Only invest in crypto projects that you fully understand.
- Critically assess whether a project’s promises or returns seem too good to be true.
- Only use reputable platforms that have a track record of strong regulatory compliance.
- Store funds in hardware wallets as opposed to online exchanges.
UAE currency: the story behind the money in your pockets
Lexus LX700h specs
Engine: 3.4-litre twin-turbo V6 plus supplementary electric motor
Power: 464hp at 5,200rpm
Torque: 790Nm from 2,000-3,600rpm
Transmission: 10-speed auto
Fuel consumption: 11.7L/100km
On sale: Now
Price: From Dh590,000
Summer special
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Youth YouTuber Programme
The programme will be presented over two weeks and will cover the following topics:
- Learning, scripting, storytelling and basic shots
- Master on-camera presence and advanced script writing
- Beating the algorithm and reaching your core audience
UAE currency: the story behind the money in your pockets
Specs
Engine: 51.5kW electric motor
Range: 400km
Power: 134bhp
Torque: 175Nm
Price: From Dh98,800
Available: Now
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Gender pay parity on track in the UAE
The UAE has a good record on gender pay parity, according to Mercer's Total Remuneration Study.
"In some of the lower levels of jobs women tend to be paid more than men, primarily because men are employed in blue collar jobs and women tend to be employed in white collar jobs which pay better," said Ted Raffoul, career products leader, Mena at Mercer. "I am yet to see a company in the UAE – particularly when you are looking at a blue chip multinationals or some of the bigger local companies – that actively discriminates when it comes to gender on pay."
Mr Raffoul said most gender issues are actually due to the cultural class, as the population is dominated by Asian and Arab cultures where men are generally expected to work and earn whereas women are meant to start a family.
"For that reason, we see a different gender gap. There are less women in senior roles because women tend to focus less on this but that’s not due to any companies having a policy penalising women for any reasons – it’s a cultural thing," he said.
As a result, Mr Raffoul said many companies in the UAE are coming up with benefit package programmes to help working mothers and the career development of women in general.
The Settlers
Director: Louis Theroux
Starring: Daniella Weiss, Ari Abramowitz
Rating: 5/5
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