Netflix loses 200,000 subscribers and shares lose a quarter of their value

This sharp fall in prices hampered the announcement in the quarter ended March of a decline in the number of subscribers to its services worldwide and its earnings.

In fact, Netflix earned $ 7.9 billion (€ 7.3 billion), more than 10% year-over-year growth in 2012 (6.7%) and higher prices, but its $ 1.6 billion profit was lower than its counterparts. which had been $ 1.7 billion.

The quarterly decrease in the number of subscribers was due to difficulties in gaining new subscribers in all regions of the world and the interruption of service in the Russian Federation.

This company had figures that benefited from a new coronavirus pandemic, so investors were now waiting for a correction, but not as strong as shown.

Netflix had hoped to grow its subscriber base by 2.5 million, and analysts expected even more, but lost, bringing the total to 221.64 million.

“The suspension of our service in the Russian Federation and the gradual decrease in the number of Russian paid subscriptions caused a net decrease of 700 thousand subscribers. Without this impact, we would have had 500,000 new subscribers compared to the fourth quarter, the California company specified in its earnings release.

“Netflix’s loss of subscribers is very revealing to a society that hasn’t stopped acquiring subscribers for a decade,” said Ross Benes, an analyst at eMarketer.

“With orders declining and growth prospects weak, Netflix will need to refocus on secondary segments such as video games or derivatives in order to increase its profits,” he added.

Leave a Comment