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Netflix posts high profit in second-quarter

The internet television network's pay subscribers grew to over 36 million.

Netflix has posted a net income of $29.5m for the second-quarter ended 30 June 2013, compared to $6.1m for the same period last year.

During the quarter, revenues increased by 20 per cent to $1.07bn (2012: $889m).

The firm's pay subscribers increased to over 36 million, of which 29.8 million were in the US and 7.7 million across the world, reported the Financial Times.

The company also added 630,000 new US customers in the second quarter, in line with its earlier estimates.

Reed Hastings, CEO of Netflix, in a letter to shareholders, said: “We are generating steady growth in members, revenue, and contribution profit.

“Our content mix, streaming and user experiences are all getting better and devices and bandwidth are improving. Countering this, competitors for consumer attention are also all improving, and the risk of US market saturation only grows as we do. Given these competing forces, we are very happy this year to be tracking slightly ahead of prior year in terms of net additions.”

Meanwhile, the company’s shares fell fell 6.6 per cent to $244.60.