Netflix shares increased by around 10 percent after the company announced surge in profit for Q3 2013.
On Monday, October 21, the on-demand online media content provider announced its Q3 earnings and said that the company's income has increased significantly along with an increase of its user base.
Netflix announced that the company's net income rose 315 percent to $31.8 million for the quarter ended September 30. The earnings per share of 52 cents also beat analysts' predictions of 49 cents. Revenue of the company rose 22 percent to $1.1 billion.
The number of Netflix subscribers by the end of Q3 2013 also jumped to 40 million, compared to 30 million recorded at the end of Q3 2012. Netflix offers online service in 41 countries globally and announced that its subscriber base had increased in all regions. The company also unveiled its plans to launch its services in more countries in 2014.
Netflix has also increased its library of titles by focusing on and producing original programs, such as "House of Cards" and "Orange is the New Black." Both the series have been welcomed well by both viewers and critics alike. Netflix is on track to show the second series of "Orange is the New Black" in 2014. A second season of "House of Cards," which includes 13 episodes, is also in production. The company plans to double its investment in original content in 2014.
"Over the next few years we aspire to support creation of some of the most compelling and remarkable content ever produced. Coupled with the flexibility of our Internet viewing and power of our personal recommendations we will keep changing television for the better," said Reed Hastings (Chief Executive Officer) and David Wells (Chief Financial Offer) in a letter to investors.
The company also took the opportunity to announce that it had no intentions to increase the monthly subscription fees of $7.99 in the U.S. Hastings also announced that Netflix subscribers streamed around five billion hours of films and television shows in Q3 2013.
Shares of Netflix rose around 10 percent in the after-hours of trading following the earnings call. Shares rose by $21.49 to close regular trading at $354.99.
