19 April 2024
If you are covering Netflix’s latest financial results, please find below a comment from Ben Barringer, technology analyst at Quilter Cheviot:
“Netflix’s growth story remains very much alive and well with a good set of numbers and margins getting ever stronger. Given the struggles the business went through in 2022, the transformation is quite something to behold and highlights the very good management team they have in place.
“Expectations have risen so greatly for Netflix that it appears some have been disappointed by this stellar quarter. Despite subscriptions rising above expectations, there was a thought they could be even stronger, but nevertheless 9.3m users added is a good result. The business is being conservative for the rest of the year and going forward in 2025 will stop reporting its subscription numbers. Given the number of different models they have this may be the right decision, but it will disappoint some regardless.
“Netflix, however, is well set for the future with its strong content slate. With the new series of Squid Game imminent and production starting on Stranger Things, 2024/25 looks very attractive for users, and the business continues to dabble in live sports with the upcoming boxing fight between Mike Tyson and Jake Paul. How it executes these events will be crucial to watch as Netflix clearly sees future growth for itself in these markets.”
