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Wednesday, October 26, 2016

San Francisco (AFP) – Netflix shares soared nine percent Monday as the streaming television service reported that profit in the recently-ended quarter climbed along with the number of subscribers.

The ranks of Netflix viewers topped 40 million in the quarter that ended September 30 — compared with the fewer than 30 million who subscribed to the on-demand television service a year earlier.

Netflix executives credited the California-based company’s investment in original programs such as “House of Cards” and “Orange is the New Black” with helping win fans.

“Over the next few years we aspire to support creation of some of the most compelling and remarkable content ever produced,” Netflix chief executive Reed Hastings and top financial officer David Wells said in a letter to investors.

“Coupled with the flexibility of our Internet viewing and power of our personal recommendations we will keep changing television for the better.”

The company planned to double its investment in original content.

Netflix reported that its profit rose to $31.8 million on revenue of $1.1 billion in earnings which bested the same quarter a year earlier and topped Wall Street expectations.

Netflix shares, which rose steadily through the day in anticipation of favorable quarterly earnings figures stood at $387.38 in after-market trades, up from $342.92.

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Copyright 2013 The National Memo