SHARE OF THE WEEK: Netflix hopes for blockbuster results after delivering a string of hits in recent months, including Harry and Meghan’s documentary
Netflix is hoping for blockbuster results when it updates the market on Tuesday.
The streaming giant has delivered a string of hits in recent months, including the tell-all Harry and Meghan documentary.
But away from all the thrillers and action-packed shows on offer, analysts and investors will want to take a close look at the first-quarter earnings.
Netflix had expected to add 4.5 million subscribers in the last three months of last year.
It surpassed this forecast with 7.7 million subscribers, bringing its total paying customers to 230.7 million by the end of 2022.
It expects to add fewer subscribers in the three months to the end of March, although the first quarter of the year tends to be weaker.
In an industry as busy as the streaming industry, getting viewers to part with their money isn’t easy. Disney and Warner Bros. Discovery have increased their prices, which analysts say could have helped Netflix gain more subscribers.
There should also be more insight into the progress of the new pricing model, which would allow subscribers to pay less if they enjoy watching ads or pay more to ensure there are no ads.
And sticking to password sharing remains an ongoing challenge.
Analysts expect Netflix revenue to rise 4 percent to £6.6 billion in the first quarter.
According to analysts, it should make a profit of around £1.3 billion, up from £1.6 billion in the same period a year ago.
And for all of 2023, Netflix is expected to generate £27.3 billion in revenue, up 8 percent from last year’s £25.3 billion.