Netflix audience grows but profit slips

Netflix on Tuesday topped revenue and subscriber expectations but shares dipped as the leader in streaming television fell short on profit in the recently ended quarter.

The global streaming giant said that it ended the second quarter with 209 million paid subscribers and revenue of $7.3 billion, some 19 percent higher than the same period a year earlier.

Profit was reported at $1.35 billion as compared to $1.7 billion in the preceding quarter. The net income figure missed market expectations.

Financial Markets Netflix stock tumbles 11 pct as subscriber growth slows after pandemic boom

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Netflix shares slipped some three percent in after-market trades that followed release of the earnings figures.

The streaming leader said the pandemic “has created unusual choppiness” in its results after strong growth last year which has now subsided.

Netflix said it is continuing to invest in content as production recovers from pandemic-caused delays, and that it is “in the early stages of expanding into games.”

“We view gaming as another new content category for us, similar to our expansion into original films, animation and unscripted TV,” Netflix said in an earnings release.

“Games will be included in members’ Netflix subscription at no additional cost similar to films and series.”