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Photo courtesy of Yonhap News |
[Alpha Biz= Kim Eun-mi] Netflix reported stronger-than-expected results for the first quarter, driven by robust subscription revenue, while also announcing that co-founder Reed Hastings will step down as chairman in June.
The company said its operating income for the quarter rose 18.2% year-on-year to USD 3.96 billion, compared with USD 3.35 billion a year earlier. Revenue increased 16.2% to USD 12.25 billion, while net income nearly doubled to USD 5.28 billion.
Netflix said both revenue and operating profit exceeded market expectations, supported by stronger-than-forecast subscription growth.
In a shareholder letter, the company noted that live streaming of the World Baseball Classic (WBC) helped drive record viewership in Japan, attracting approximately 31.4 million viewers.
Earnings per share came in at USD 1.23, up sharply from USD 0.66 a year earlier and well above analysts’ expectations of USD 0.76. The result was partly boosted by a USD 2.8 billion breakup fee following the collapse of a merger agreement with Warner Bros. Discovery.
Despite the strong performance, Netflix maintained its full-year outlook. For the second quarter, the company expects revenue growth of 13%—slower than in the first quarter—and an operating margin of 32.6%, noting that content amortization expenses are expected to peak during the period.
Separately, Netflix announced that Hastings, who founded the company 29 years ago and stepped down as CEO in 2023, will leave his role as chairman when his term expires in June. He said he plans to focus on philanthropy after his departure.
Despite the earnings beat, Netflix shares fell about 9% in after-hours trading.
알파경제 김은미 인턴기자(kfootle@alphabiz.co.kr)
