Netflix Subs Rebound in Q4
Netflix Inc. (Nasdaq: NFLX) wrapped up a tough 2011 on a high note, as it added more than 600,000 subscribers, almost making up for the 800,000 customers it lost in the third quarter amid an uproar over price hikes and a short-sighted attempt to split out its DVD and streaming business. (See Netflix Faces Class-Action Suit, Netflix Loses 810,000 Subs and Netflix Kills Qwikster.)
Netflix ended the year with 24.4 million U.S. subs, up from 23.8 million at the end of the third quarter.
The company posted net income of $40.7 million, or 73 cents per share, down from $47.1 million, or 87 cents per share, in the year-ago quarter, on revenues of $876 million.
Despite the earnings drop-off, investors are apparently pleased with the subscriber bounce-back and the fact that revenues beat the $857.6 million expected by analysts.
Netflix shares were up $12.59 (13.25 percent) to $107.63 in after-hours trading Wednesday.
— Jeff Baumgartner, Site Editor, Light Reading Cable