Streaming service Netflix reported the results of work in the third quarter of 2022. The company’s revenue amounted to $7.9 billion, which is only 5.9% more than the previous year, operating profit: $1.5 billion vs. to $1.8 billion last year, net earnings: $1.4 billion versus $1.5 billion a year earlier.
After two disastrous quarters, Netflix managed to boost its number of new subscribers to 2.4 million, even though the streaming service was targeting 1 million.
More than half of the new users are in the Asia-Pacific region (Netflix does not include Russia there), the minimum – in the United States and Canada.
The service’s most successful projects during the reporting period are the new season of Stranger Things and Neil Gaiman’s comic book adaptation The Sandman.
For the fourth quarter, the company forecasts $7.8 billion in revenue, less than 1% more than in the same period in 2021. Streaming explains such forecasts mainly by the strengthening of the dollar against other currencies, which negatively affects its financial performance. This is because 60% of all utility bills come from outside the United States, while spending is in dollars.
In Russia, Netflix has officially stopped working since the end of May. The company could have done it sooner, but waited for Russian users to expire their paid subscriptions.
In late April, a group of Russian Netflix users sued him to restore access to content that the company had suspended in connection with the military operation in Ukraine.
Due to the suspension of activities on the territory of the Russian Federation, Netflix lost a significant part of its subscribers, information about which was reflected in the quarterly financial report. It disappointed investors: Netflix shares fell 37% in one day and dragged the entire stock market of streaming services down.
I am Bret Jackson, a professional journalist and author for Gadget Onus, where I specialize in writing about the gaming industry. With over 6 years of experience in my field, I have built up an extensive portfolio that ranges from reviews to interviews with top figures within the industry. My work has been featured on various news sites, providing readers with insightful analysis regarding the current state of gaming culture.