The growth in the number of Netflix subscribers is greater than the estimates, and the increase in shares

(Reuters) – During the last quarter, Netflix Inc. added about 7 million streaming customers, 1.8 million more than expected, thanks to a record amount of original programming, including new TV series. Popular shows such as "Orange is New Black". BoJack Horseman. "

The additions brought Netflix's customer base to 137 million people worldwide, and video streaming pioneer shares surged 14% to $ 394.25 after-hours trading.

Netflix is ​​investing billions of dollars in entertainment programs to attract new customers around the world. Investors have generally accepted large expenses because the number of subscribers has grown in recent years.

Since the beginning of the year, Netflix shares have increased by approximately 78%, compared to around 5% for the S & P 500 index.

Netflix results sent shares of Alphabet Inc., Facebook Inc. and Amazon.com Inc., up about 1% on extended trading. The four companies form the so-called FANG group of high-growth companies that, in recent months, have lost some of their momentum after the market leader gains made in recent years.

Netflix said it had recruited about 1.1 million subscribers in the US in the last quarter, compared to 674,000 according to analysts, according to Refinitiv.

Netflix added nearly 5.9 million subscribers internationally, compared to an average estimate of 4.5 million analysts.

For the current quarter, Netflix plans to add 1.8 million customers in the United States and 7.6 million customers in international markets.

During the September quarter, Netflix added approximately 676 hours of original programming in the US, an increase of 135% over the previous year, according to analysts at Cowen and Co.

He also performed well in September at the Emmy Awards, the highest honors in the television industry. Netflix equalized, HBO, its longtime favorite, HBO, in total.

But Netflix has borrowed a lot to finance its TV shows and movies. It issued bonds worth $ 7.5 billion in less than three years.

Bearish wagers on $ 8.4 billion worth of badly rated bonds more than tripled this year to a record $ 347 million, according to IHS analyst Samuel Pierson. Markit.

It also faces competition from companies such as Hulu and Amazon. The battle is expected to intensify at the end of next year with new streaming services from Walt Disney Co and AT & T Inc.

The company's net income reached $ 402.8 million, or 89 cents per share, in the third quarter ended September 30, compared with $ 129.6 million, or 29 cents a share, a year earlier.

Total revenues reached $ 4 billion, which is in line with analysts' expectations of $ 4 billion.