updated 07:28 pm EST, Wed January 22, 2014
International expansion still dragging down bottom line, improvement in sight
Internet movie streaming service Netflix has announced its quarterly earnings. The company continues to be dragged down by a loss overseas, but still managed to earn $0.79 per share. With over 44 million customers worldwide, the company pulled down $1.18 billion in revenue in the fourth quarter, with $48 million of that being net income.
For the first quarter of 2014, the company is forecasting an almost 60 percent increase in net additions from the prior year, from 1.02 million to 1.60 million. It expects overseas losses to drop to $42 million, a $15 million improvement from this quarter, on the strength of what it calls a "substantial European expansion."
The company noted that at CES it promoted Ultra High Definition (4K) technology. Its 4K streams will be encoded at 15.6Mbps, with the company claiming that the bandwidth demand is "well within reach of a significant minority of our members, and the reach of capable 20Mbps broadband connections will continue to grow."