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The number of subscribers won in the second quarter is significantly lower than expected. The action of the American group falls in exchanges after market.
Netflix, one of the stars of the tech on Wall Street, disappoints strongly. In the second quarter, the video subscriber platform grew significantly below expectations in terms of new subscribers, leading to a 14% drop in the US group's share price in after-market transactions.
The company now has 130 millions of subscribers. But it attracted 5.2 million between April and June, a million less than expected, according to Thomson Reuters data. Netflix attracted 670,000 new subscribers in the United States, against 1.19 million anticipated, and 4.47 million international against 4.97 million expected by badysts. And this despite the hoped-for attraction of launching new offers, including the series "Lost in Space" or new episodes of "Jessica Jones" and "13 Reasons Why."
"We had a vigorous second quarter but not extraordinary, "Netflix explained in a quarterly letter to its shareholders. The company added that it "overestimated" quarterly fluctuations in subscriptions.
Quotes doubled since January
This bad news falls as Netflix's price has doubled since the beginning of the year , and that, during the same period, the S & P-500 index took only 3.7%. "Investors are devastated by the flop of the latest Netflix forecast, which now makes its forecasts suspicious and undermines its valuation," says Eric Schiffer, the private equity fund Patriarch.
Wall Street bet until now a dramatic growth in the number of Netflix customers in a context of growing demand for online entertainment around the world. Gold Netflix incurs heavy expenses to attract new customers. The group has planned to spend up to $ 8 billion on television series and movies this year. A way of life that badumes to earn a solid income.
Analysts also believe that Netflix may reach a certain ceiling in many of its markets, and that competition is starting to get serious. Disney, Amazon and Apple are now investing heavily in online video, just as AT & T is looking to invest in HBO after taking control of the cable channel after the takeover of Time Warner.
In its letter to shareholders Netflix itself admits to expect more competition internationally. In Europe, he cites in particular ProSiebenSat 1 Media in Germany and the Salto alliance (TF1, France Televisions and M6) in France. In any case, Netflix expects five million new customers for the current quarter, particularly in India, a market on which it is also going into production.
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