According to the earnings report released by Netflix on the 21st, the company's Q4 revenue increased by 17.6% year-over-year to $12.051 billion, with earnings per share (EPS) at $0.56. These figures slightly surpassed Wall Street's average estimates compiled by financial information provider LSEG, which predicted revenue of $11.97 billion and EPS of $0.55.
Netflix's paid subscriber count reached 325 million by the end of the fourth quarter. The company forecasts that its annual revenue will grow by 12-14% this year, with advertising revenue expected to double and operating margin projected to rise to 31.5%.
Additionally, Netflix anticipates incurring approximately $275 million in costs this year related to its acquisition of Warner Bros., on top of the $60 million spent last year. To accumulate the necessary cash for the Warner Bros. acquisition, Netflix announced a temporary halt to its share buyback program. On the day of the announcement, Netflix's stock closed 1.08% lower in regular trading on the New York Stock Exchange and fell nearly 5% in after-hours trading.
Reported by Yeji Ryu, TenAsia ryuperstar@tenasia.co.kr