Netflix loses almost 1M subscribers in Q2 2022
It was earlier predicted that the popular streaming media giant, Netflix, would lose about 2 million users worldwide in the second quarter of this year, but the results appears to be more optimistic.
For the second quarter, the total Netflix subscription base of the service decreased by 970 thousand; and amounted to 220.7 million people worldwide. Independent experts from Wedbush Securities predicted an outflow of 1.5 million users, but such calculations also did not materialize.
Netflix’s revenue in the second quarter reached $8 billion; in the same period last year it amounted to $7.3 billion. In the third quarter, the service expects a decrease in revenue to $7.8 billion to $1.6 billion; and global net profit grew from $1.35 billion to $1.44 billion.
The situation is worst in the US and Canada, where even the long waited release of Stranger Things could not help the company – the number of subscribers decreased by 1.3 million, according to available data – due to rising subscription costs.
The number of users in Europe has also decreased (the largest country in Europe – Russia, Netflix also refers to the corresponding statistics). Here the number of users decreased by 770 thousand people.
At the same time, the number of subscribers in Latin America grew by 100 thousand people; and the Asia-Pacific region showed the largest increase, where 1.08 million new users in the quarter.
In general, according to the results of the first half of the year; revenue reached $15.8 billion ($14.5 billion year-on-year); operating profit at $3.6 billion against $3.8 billion, and net income at $3 billion.
In the current quarter, Netflix expects growth of 1 million subscribers, and among the risk factors that could affect the results, the depreciation of the euro is one, given that 60% of the company’s income comes from outside the United States, and expenses and accounting are in dollars.