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Netflix beats expectations for new subscribers in Q4

(Reuters) – Netflix on Tuesday reported new subscribers in the fourth quarter well ahead of Wall Street expectations, thanks in part to the final season of “The Crown” and David Fincher’s new film “The Killer.”

The US streaming giant rose 7% in after-hours trading, while its shares rose 65% last year.

Between October and December, Netflix recorded 13.1 million new subscribers worldwide, a record for the fourth quarter, compared to the consensus of 8.97 million new customers. The total number of subscribers to the platform is thus 260 million.

Netflix reported earnings per share of $2.11, compared to the average analyst forecast of $2.22. The group explained that this was mainly due to a loss of US$239 million related to exchange rates.

Its quarterly revenue was $8.8 billion, beating the consensus and Netflix’s own forecast ($8.7 billion).

The firm said it expects solid double-digit growth for 2024 with the arrival of new subscribers and the development of its advertising activities.

While advertising revenue does not make up a significant portion of its revenue, Netflix says it intends to change that by 2025.

While competition in the streaming market is fierce in the United States, “it’s clear that Netflix has won the battle,” said Jessica Reif Ehrlich, an analyst at Bank of America.

She also said in the note that Netflix’s crackdown on password sharing should help drive subscription growth through advertising.

Netflix says it sees growth opportunities in new areas such as gaming and live events. Earlier on Tuesday, the group announced a deal worth more than $5 billion to broadcast World Wrestling Entertainment (WWE) wrestling programming.

(Reporting by Dawn Chmielewski in Los Angeles, with Yuvraj Malik in Bangalore; French editing by Jean Terzian)

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