Netflix doubles its profit in 2018 | economy

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Netflix continues to grow and does so at an even faster pace than a year ago. The platform for the distribution of audiovisual content via Streaming has improved revenues by 35% in the 2018 fiscal year, to $ 15,800 million, of which 4,190 in the last quarter of the year. The advantage, meanwhile, amounted to € 1,210 million, double that of a year ago, of which 134 between September and December.

The Los Gatos company is a special case on Wall Street. This week has just announced an increase of up to 18% of the price paid by its subscribers in the United States, a country that reaches half of the families with television. The justification of the company at this cost: it is necessary to spend more to produce original content. But this increased investment in films, series and documentaries that make the difference with the competition has also caused a rebound of its debt, which in the last year has gone from 6,500 million to 10,400 million dollars.

"The goal is to increase revenues faster to expand the operating margin," says the company. A year ago this margin was 7.5%, but contracted up to 5.2% for the first of new securities in the last quarter. Among these, two films stand out: Bird Box, played by Sandra Bullock, e Rome, directed by Alfonso Cuarón. It remains to be seen whether the increase in costs causes a shift of Netflix subscribers to other rival platforms in a market where competition is already intense.

Netflix ended the year with 139 million subscribers, one third more than at the beginning of the year. In the fourth quarter it added 8.8 million paid users and the company anticipates another nine million in the current quarter thanks to the push of international expansion. The shares of the Californian company increased by 60% in the last year, in contrast to the 6% drop in the S & P 500, the benchmark index of the American stock exchange.

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