Netflix Shares Rise 10% on Strong Results - Multichannel

Netflix Shares Rise 10% on Strong Results

Originals, Full Seasons Drive Q3 For Over-The-Top Pioneer
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Netflix shares soared in after-hours trading Monday after the over-the top pioneer said it had added 1.3 million new domestic streaming subscribers in the third quarter, which helped more than quadruple net income in the period.

Netflix shares rose more than 10% ($36.01 each) in after-hours trading Monday to $391 per share. The stock already is up more than six-fold form its 52-week low of $57.40 each.

Netflix ended the period with 29.93 million paid domestic customers.

Revenue for the content giant rose 21% to $1.1 billion from $905.1 million in the prior year, while net income, at $31.8 million, was more than four times the $7.7 million reported in the same period last year. The company said in a statement that its original programming like House of Cards, and Orange is the New Black helped drive results, as well as its full-season offerings of shows from other TV networks, like Breaking Bad and The Walking Dead.

In a letter to shareholders, Netflix said that it plans to double original programming spend in 2014, including second seasons of House of Cards, Orange is the New Black, Derek and Hemlock Grove and a recently announced project from the creators of the FX hit Damages. Earlier Netflix said it will roll out a number of new animated series from DreamWorks Animation next year.

“Expect more news on additional new original projects in the months to come,” the company said in a statement.   

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