Second-quarter revenue rose 12%, ignoring exchange rate impacts, to $12.6bn ($12.6bn expected), driven by membership growth, pricing, and increased ad revenue.
Operating profit rose 11.1% to $4.2bn ($4.1bn expected), margins declined 0.7 percentage points to 33.4% as content costs increased.
Free cash flow fell 33% to $1.5bn and net debt increased by $3.1bn to $5.2bn. Share buybacks totalled $4.7bn, with $27.1bn remaining on the current plan.
Looking at the third-quarter, management expects revenue growth of 11%, with margins of 33.2%. For the full-year, revenue is expected to land between $51-51.4bn, growing around 12%, with operating profit growth of above 20% and margins at 31.5%.
The shares fell 8.9% in after-hours trading.
Our view
HL view to follow
Netflix key facts
All ratios are sourced from LSEG Datastream, based on previous day’s closing values. Please remember yields are variable and not a reliable indicator of future income. Keep in mind key figures shouldn’t be looked at on their own – it’s important to understand the big picture.
This article is original Hargreaves Lansdown content, published by Hargreaves Lansdown. It was correct as at the date of publication, and our views may have changed since then. Unless otherwise stated estimates, including prospective yields, are a consensus of analyst forecasts provided by LSEG. These estimates are not a reliable indicator of future performance. Yields are variable and not guaranteed. Investments rise and fall in value so investors could make a loss.
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