Netflix Adds More Subscribers Than Expected

(Reuters photo)

Netflix Inc added more subscribers than expected around the world in the third quarter and projected growth in line with Wall Street forecasts, saying it had a head start on rivals as internet television explodes globally.

According to Reuters, shares of the world’s leading online video streaming service touched a record high on Monday and rose a further 1.2 percent after hours to $205.07. They are up about 64 percent this year.

For the third quarter, Netflix added 5.3 million subscribers in all its markets, compared with Wall Street’s target of 4.5 million, according to FactSet. Netflix forecast 6.3 million additions for the current quarter, just above analysts’ average estimate of 6.25 million, which would bring its global customer base to nearly 115.6 million.

The company known for original TV shows such as “House of Cards” is spending heavily to produce and acquire content as it races to dominate streaming television in international markets, which now account for the majority of its subscriber growth.

Investors have been bullish on Netflix’s ability to keep signing up customers around the world despite new rivals. Netflix recently traded at 101 times expected earnings for the next 12 months, versus Amazon.com Inc at 144 times earnings and Time Warner Inc at 16 times earnings, according to Thomson Reuters data.

The company faces increasing competition from streaming services such as Amazon.com’s Prime Video, plus moves by traditional media companies. Walt Disney Co decided to yank its first-run movies from Netflix in the United States starting in 2019, and to launch its own online offering.