Netflix Stock Rises As It Reaches 65 Million Subscribers

Netflix packed on 3.3 million new members worldwide in the second quarter of 2015 — a company record for the historically weak period — and beat Wall Street earnings estimates.

The company’s net gain of 3.3 million new streaming members, bringing it to total of 65.6 million, was nearly double the 1.7 million net adds in the year-ago quarter. Netflix had forecast 2.5 million new subs for Q2 2015.

In a letter to shareholders, CEO Reed Hastings and CFO David Wells said the higher-than-expected subscriber gains were “fueled by the growing strength of our original programming slate.” During the quarter, Netflix premiered the first seasons of “Marvel’s Daredevil,” “Sense8,” “Dragons: Race to the Edge” and “Grace and Frankie,” as well as season three of “Orange Is the New Black.”

The execs said U.S. revenue growth also was driven by a 5% year-over-year increase in average selling price, as new subscribers opt for Netflix’s $8.99-per-month two-stream plan.

In after-hours trading Wednesday, Netflix’s stock jumped more than 10%. The strong results come after the No. 1 subscription-video provider notched a record 4.9 million net increase in subsworldwide for the first three months of 2015.

Netflix posted revenue of $1.64 billion, an increase of 23% year over year, in line with Wall Street expectations. The company posted earnings of 6 cents per share, versus analyst forecasts of 4 cents; the EPS figures are adjusted for Netflix’s 7-for-1 stock split, which took effect Wednesday. Netflix reported net income of $26.3 million, versus $71.0 million in Q2 2014.

Want to know more? Got the drop at Variety . . .

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