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| Netflix Registered US$ 5 Million Loss |
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Netflix announced a US$ 5 million loss for the year's first quarter, while its shares plunged 16%. Its CEO stated it will still carry on with its international expansion strategy.
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Netflix is not having a good week. Million dollar losses and shares plummeting. Once again, everyone is up in arms about the online streaming service's results, and not even its CEO's words seem to be calming people down.
This Monday, the company announced a US$ 5 million first-quarter loss, and its shared plunged 16%.
One year before, Netflix had reached US$ 60 million in profit, which makes this an even greater loss.
According to the financial report, Netflix registered global revenue of US$ 870; 21% higher than the US$ 719 million registered during the same quarter in 2011.
Yet, its international expansion costs in Latin America, Canada, the UK and Ireland, as well as its original production costs and the loss of subscribers to its DVD rental service, all influenced its annual loss.
On the bright side, Netflix drew in 3 million new clients to its online TV service during the first quarter, reaching 16 million worldwide. 1.7 million of those were added in the US. All in all, the company has 3.07 million subscribers outside the US.
The company announced it's expecting to turn a profit on the next quarter and that it will continue with its expansion strategy.
"Given our expected return to global profitability in Q2, and how well we've been received in the UK, we've decided to open an additional attractive European market in Q4 of this year," CEO Reed Hastings said.
Hastings' statement is based on the success obtained in the UK and their expectations to be profitable in Canada. In Latin America, the scenario seems quite different.
"It will take us more time than we initially anticipated to build a solid, profitable base in Latin America," said the company in its report.
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Mirando el lado positivo, en el primer trimestre Netflix atrajo a 3 millones de nuevos clientes a su servicio de televisión online, con lo que la cifra total a nivel mundial se coloca en los 26 millones. De los mismos, 1,7 millones fueron en Estados Unidos y 1,2 millones en sus operaciones internacionales. En total, fuera de EEUU cuenta con 3,07 millones de suscriptores.
Así, la compañía anunció que espera volver a registrar ganancias en el próximo trimestre y que continuará con su política de expansión.
"Teniendo en cuenta que esperamos volver a ser rentables en el segundo cuarto y lo bien que nos han recibido en el Reino Unido, hemos decidido sumar un nuevo mercado europeo clave para el último trimestre del año", anunció el CEO de la compañía, Reed Hastings.
Las declaraciones de Hastings se basan en el éxito obtenido en el Reino Unido y las previsiones de comenzar a ser rentables en Canadá para el segundo trimestre. En América Latina, en cambio, el panorama parece ser otro.
"Nos tomará un tiempo mayor el esperado inicialmente construir en América Latina una base de negocio sólida y rentable", admitió la compañía en su reporte financiero.
De momento, las optimistas declaraciones de Hastings no han logrado frenar una tendencia a la baja de los títulos de Netflix.
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