Thanks to a subscriber base that grew 41.5% year over year, Netflix Inc. showed a sharp increase in revenue in the second quarter ended June 30. Netflix reports that Q2 revenue hit $519.8 million, up 27.2% from the year-earlier period.
“Our rate of subscriber growth continues to accelerate and we added more than a million net new subscribers for the third consecutive quarter,” says Reed Hastings, CEO and founder of Netflix, No. 14 in the Internet Retailer Top 500 Guide. “Consumers are clearly enthralled by our offering of unlimited movies and TV shows streamed over the Internet.”
For the second quarter ended June 30, Netflix reported:
- Total revenue increased by 27.2%, to $519.8 billion from $408.5 billion a year ago.
- Net income for was $43.5 million, a 34.3% increase compared with $32.4 million last year.
- Total subscribers grew 41.5% to 15.0 million from 10.6 million.
- Customer churn of 4.0%, down from 4.5% a year ago.
- 61% of subscribers watched more than 15 minutes of a TV episode or movie in Q2 compared with 37% for the same period of 2009 and 55% in the first quarter.
For the first half of 2010, Netflix reported:
- Sales of $1.0 billion, a 24.6% increase from $802.6 million a year ago.
- Net income was $75.8 million, a 38.3% increase compared with $54.8 million in 2009.
For the 2010 fiscal year, Netflix projects sales to range from $2.14 billion to $2.16 billion, net income from $141 million to $156 million and subscribers from 17.7 million to 18.5 million.