Netflix, Bridgerton and Baby Reindeer push profits to over 2 billion in the quarter

Netflix's quarterly results exceeded expectations: the streaming company reported second-quarter earnings per share of $4.88 on revenues of $9.56 billion, against expectations for $4.74 on $9.53 billion. Revenues were up almost 17% from a year earlier, net income rose 44% to $2.15 billion.

Netflix continues to attract new customers and slightly raised its outlook on revenue growth for the full year. Indeed, it added 8.05 million (net) subscribers in the quarter, after 5.89 million in the same period a year ago. Subscribers to ad-supported plans increased by 34 per cent. At the end of the quarter, Netflix had 277.65 million subscribers worldwide, against expectations for 274.4 million.

The company then raised its forecast for revenue growth in 2024 from 13%-15% to 14%-15%. Since the beginning of the year, Netflix's share price has gained almost 40%, although after the results release the shares were down about 2% in after-hours trading.

Netflix claimed to have added more than eight million subscribers in the three months to June, attracting audiences with the new season of Bridgerton and Baby Reindeer.

"If the execution is right we believe we have further room for growth," Netflix says in its letter to shareholders referring to its new initiatives in live programming, video games and advertising. The better-than-expected results allow Netflix to stretch its lead over rivals such as Disney and Warner Bros Discovery as they seek a balance between declining traditional TV revenues and investment in their social platforms.