WASHINGTON (dpa-AFX) - Online video service provider Netflix Inc (NFLX), Monday reported a better-than-expected increase in first-quarter profit, due mainly on sustained subscriber growth. The popular movie streaming site also provided a strong outlook for the second quarter, while indicating higher prices for new customers.
Following the announcement, Netflix shares gained 7 percent in after-hours trade on the Nasdaq.
Netflix added 2.25 million subscribers in the U.S. to end the first quarter with 34.38 million domestic paid members, up from 27.91 million members a year ago.
To ramp up its content, Netflix has been investing in movie rights and original shows. Its international segment was also strong, with paid members for the quarter climbing to 11.76 million from 6.33 million last year.
Netflix said the international segment, which accounts for 25 percent of its streaming revenue, will eventually surpass its U.S. market.
The company said its original programming initiatives gained momentum during the quarter, with House of Cards attracting a huge audience. House of Cards - Season 2 debuted in February.
Netflix, based in Los Gatos, California, posted first-quarter revenue of $1.27 billion, compared with $1.02 billion last year. On average, 31 analysts polled by Thomson Reuters estimated revenues of $1.27 billion for the quarter.
Net income for the quarter was $53 million or $0.86 per share, compared with $2.7 million or $0.05 per share a year ago. Twenty-nine analysts had a consensus earnings estimate of $0.83 per share for the quarter. Analysts' estimates typically exclude special items.'
Results for the prior-year quarter included debt-related losses of $25 million.
For the second quarter, Netflix expects net income of $69 million or $1.12 per share, domestic streaming revenue of $835 million and international streaming revenue of $304 million.
Analysts currently expect Netflix to earn $1.00 per share on revenues of $1.32 billion for the quarter.
The company expects to add 0.52 million domestic streaming members and 0.94 million international streaming members in the quarter.
Netflix said its current view is for a one or two dollar increase in prices later this quarter for new members.
Netflix stock closed Monday at $348.49, up $2.75 or 0.80%, on a volume of 4.4 million shares. In after hours, the stock gained $23.90 or 6.86%, to trade at $372.39. In the past year, the share trended in the range of $161.80 - $458.00.
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