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Netflix shares jump as subscriptions top 100m
[SAN FRANCISCO] Netflix on Monday reported that the number of subscribers climbed more than expected, topping 100 million worldwide and sending shares in the leading on-demand television service soaring.
Netflix shares leapt more than 8 per cent to US$175.90 in after-market trades that followed release of earnings figures that showed the Silicon Valley-based company added 5.2 million subscribers in the recently ended quarter to raise the total to 103.95 million for its streaming service.
Most of the subscriber growth came from outside the US, where Netflix has invested heavily in establishing itself as a global television service.
Netflix said profit was up 61 per cent to US$66 million. Revenue increased 32 per cent to US$2.78 billion from the same quarter last year.
"We underestimated the popularity of our strong slate of content which led to higher-than-expected acquisition across all major territories," Netflix said in a letter released along with the earnings figures.