Netflix surpasses 60m subscribers

<p>Netflix now boasts a huge 62.3 million global subscribers.</p>

The rise of internet television service Netflix seems unstoppable as the company smashes through the 60 million mark in terms of subscribers.

In its latest trading update, Netflix revealed that it added five million users in the first quarter of 2015 taking its total global subscribers to 62.3 million. It added that this figures was much better than previously predicted and culminated in a 23 per cent increase in revenue to $1.57 billion (£1.06 billion), compared with the same period a year earlier.

While net profit was down slightly at $23.7 million, the company was boosted by a 13 per cent rise in its share price during after hours trading. After the significant rise it's 0.68 per cent down at 475.46. In a statement, it confirmed that it would be seeking a share split to return money to investors in the coming months.

The statement also added: "We are excited to see internet TV catch hold across the world. We are at one of those wonderful moments when technology intersects with storytelling to create more choice and value for consumers. It’s great to be at the vanguard and we appreciate your support."

Expanding service

Netflix has been able to expand its service at an exponential rate thanks to original programmes such as House of Cards, Orange Is The New Black and Bojack Horseman. It has also been boosted by gaining exclusivity to shows such as the Breaking Bad spin-off Better Call Saul.

The popularity of its product has meant it has been able to move into previously untapped countries such as Cuba. In February, Netflix announced that it would be launching its service in the Central American country after relations between Cuba and the US continued to thaw. It represented a major landmark for the two nations who had been embroiled in a trade embargo since 1962.

Build your confidence risk free
Join our live webinars for the latest analysis and trading ideas. Register now

StoneX Financial Ltd (trading as “City Index”) is an execution-only service provider. This material, whether or not it states any opinions, is for general information purposes only and it does not take into account your personal circumstances or objectives. This material has been prepared using the thoughts and opinions of the author and these may change. However, City Index does not plan to provide further updates to any material once published and it is not under any obligation to keep this material up to date. This material is short term in nature and may only relate to facts and circumstances existing at a specific time or day. Nothing in this material is (or should be considered to be) financial, investment, legal, tax or other advice and no reliance should be placed on it.

No opinion given in this material constitutes a recommendation by City Index or the author that any particular investment, security, transaction or investment strategy is suitable for any specific person. The material has not been prepared in accordance with legal requirements designed to promote the independence of investment research. Although City Index is not specifically prevented from dealing before providing this material, City Index does not seek to take advantage of the material prior to its dissemination. This material is not intended for distribution to, or use by, any person in any country or jurisdiction where such distribution or use would be contrary to local law or regulation.

For further details see our full non-independent research disclaimer and quarterly summary.