SAN FRANCISCO, Oct 21 (Bernama-Xinhua) -- US streaming giant Netflix reported a nearly 44 per cent year-on-year increase in third-quarter net profit on Tuesday, but lowered its full-year advertising revenue forecast amid slowing revenue growth, reported Xinhua.
According to the company's latest financial report, Netflix posted net income of US$3.66 billion for the quarter ended Sept 30, up 44 per cent from US$2.55 billion a year earlier.
Quarterly revenue increased 11.8 per cent year on year to US$12.87 billion, compared with US$11.51 billion in the same period last year. The growth rate slowed from 13.4 per cent in the second quarter.
Operating income rose 37 per cent to US$4.46 billion, while the operating margin improved to 34.6 per cent from 28.2 per cent a year earlier.
Diluted earnings per share reached 87 cents, compared with 59 cents a year earlier, exceeding analysts' expectations of 82 cents per share, according to Reuters.
Netflix said its revenue growth was driven primarily by higher subscription revenue, reflecting increases in memberships and pricing, as well as growth in advertising revenue and favourable foreign exchange movements.
However, the company lowered its forecast for full-year 2026 advertising revenue to approximately US$2.7 billion from its previous projection of about US$3 billion, citing a slower-than-expected rollout of certain advertising product capabilities.
For the fourth quarter, Netflix projected revenue of US$13.44 billion and net income of US$2.79 billion, with diluted earnings per share expected to reach 67 cents, below analysts' expectations of 73 cents.
The company expects full-year 2026 revenue of approximately US$51.1 billion, up 13 per cent year on year, with an operating margin of 31.5 per cent.
--BERNAMA-XINHUA
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