SAN FRANCISCO (AP) — Netflix's third-quarter earnings rose 65 percent even though the video subscription service suffered the biggest customer losses in its history.
The financial results, released on Monday, covered an abysmal stretch that saw Netflix Inc. lose its luster among consumers and investors. Netflix triggered the backlash by raising prices as much as 60 percent in the U.S. and bungling an attempt to spin off its DVD-by-mail rental service.
The company ended September with 23.8 million U.S. subscribers, down about 800,000 from June. Management expects to gain U.S. subscribers in the current quarter, although Netflix didn't set a specific target. Its projections for fourth quarter earnings were below analysts’ expectation and the stock, up about two percent during the day, plunged nearly 22 percent in after-hours trading. The stock has fallen more than 60 percent since July.
The company earned $62.5 million, or $1.16, per share, in the third quarter. That compared to income of $38 million, or 70 cents per share, at the same time last year.
Copyright 2011 The Associated Press.
