Netflix Inc. reported lower-than-expected sales and insufficient numbers of new subscribers, causing a drop in stocks and disappointed investors who have offered shares of the broadcast giant by as much as 50 percent in recent weeks.
The online entertainment company said fourth-quarter revenue rose 27 percent to $ 4.19 billion, down from analysts' forecast of $ 4.21 billion. Sales projections for the current quarter were also below estimates, so stocks fell to 5.3% in out-of-market operations, before recovering slightly and recording a drop of about 2%.
The results suggest that Netflix's unprecedented spending on new movies and series may not perform well, despite the buzz of hits such as the "Bird Box" horror film, which was watched by 80 million people. Subscribers
The company expects to attract a record 8.9 million new customers worldwide in the first quarter, slightly more than the period ended. The slight preview of subscribers is partly the result of the price increase announced by Netflix on Tuesday.
"The long-term investment history remains intact, as overseas subscribers are expected to increase by 22 percent" in this period.
Netflix is competing to maintain its huge advantage in a field that adds more broadcasting services, with new offers from Walt Disney Co. and WarnerMedia from AT & T Inc.
The company's long-term programming budget was $ 19.3 billion at the end of the year, compared to $ 18.6 billion in the previous three months. Netflix's operating margin declined in the quarter due to the large number of titles launched.
In addition to "Bird Box", 40 million families saw the series "You" on a stalker. The most important scripted program was the reality show about cleaning up the house "Making up with Marie Kondo".