US streaming giant Netflix increased its subscriber base by 15.8 mln in the Q1 2020 compared to 9.6 mln in the same period last year, according to Netflix report.
The corporation drew attention to the fact that this figure was twice as much as its own forecast. Netflix had expected nearly 7 mln new subscribers in the Q1 of this year.
"Like other home entertainment services, we’re seeing temporarily higher viewing and increased membership growth. In our case, this is offset by a sharply stronger US dollar, depressing our international revenue, resulting in revenue-as-forecast. We expect viewing to decline and membership growth to decelerate as home confinement ends, which we hope is soon," the company said in a letter to shareholders attached to the report, TASS reports.
The company’s revenue in Q1 amounted to $5.77 bln, compared to $4.52 bln in the Q1 of last year. Net profit over the same period increased from $344 mln to $709 mln.
"There are three primary effects on our financial performance from the crisis. First, our membership growth has temporarily accelerated due to home confinement. Second, our international revenue will be less than previously forecast due to the dollar rising sharply. Third, due to the production shutdown, some cash spending on content will be delayed, improving our free cash flow, and some title releases will be delayed, typically by a quarter. More on each of these three effects below," Netflix said.
Netflix provides streaming services in more than 190 countries, including Russia. The company was founded in 1997, headquartered in Los Gatos, California. Since 2013, Netflix has been producing its own films, series, and television shows.