Netflix added 3.28 million streaming subscribers in the June quarter, which came in better than the estimates. However, the rising subscriber base, which comes from the ambitious international expansion do highlight the risks related to expansion and operating overseas.
More subscribers, less profits for Netflix
Netflix reported a 3.28 million bump in subscribers, well above its guidance of 2.5 million. On average, analysts expected the U.S. firm to add 3.14 million subscribers. On the other hand, profit was down 63% as costs spiked due to increased spending on buying and creating content. Also, the strong U.S. dollar depleted the revenue earned from overseas operations, says a report from the Wall Street Journal. Profit for the quarter came in at $26.3 million, or six cents a share versus 71 million, or 16 cents a share last year. Revenue climbed from $1.34 billion to $1.64 billion.