Netflix and its 99 problems: Shocking firings, declining stocks
Netflix reported higher third-quarter earnings, but its shares fell nearly 6% in after-hours trading as a reduced advertising forecast overshadowed the results amid a shake-up involving content chief Bela Bajaria and film chief Dan Lin, reports a Qazinform News Agency correspondent.
Earnings reached 87 cents per share, exceeding analysts’ expectations of 82 cents. Revenue rose 11.8% year on year to $12.87 billion, while net income increased to $3.66 billion.
In its shareholder letter, Netflix lowered its full-year advertising revenue outlook to approximately $2.7 billion from $3 billion, citing slower-than-expected deployment of some advertising capabilities.
The company forecast fourth-quarter revenue of $13.44 billion and earnings of 67 cents per share. Its projected operating margin of 26% includes costs associated with recently announced workforce reductions.
“With intense competition and an explosion of content competing for consumer attention, strategic clarity and excellent execution are critical,” Netflix said.
The results follow the departures of two senior programming executives. Netflix announced that former Disney and Fox executive Peter Rice will replace Bajaria as chief content officer on October 26.
Bajaria is leaving after nearly a decade at the company. Rice will oversee its global content organization, including scripted and unscripted series, films and live events.
“I want to thank Bela for a decade of dedication, innovation, creativity and leadership,” co-CEO Ted Sarandos said.
Netflix also confirmed that Lin would leave its film division, marking a second senior executive departure within a week.
Earlier, Qazinform News Agency reported that Netflix has released the first trailer for Narnia: The Magician’s Nephew, a fantasy adventure about the creation of the magical world of Narnia, directed by Greta Gerwig.