'Squid Game' becomes top Netflix money-maker
Some investors had hoped for more from the dominant film and TV streaming service, analysts said.
Netflix shares had risen nearly 44 per cent this year ahead of the earnings report last night, but the stock fell 1.8 per cent to $1,251.86 in after-hours trading.
Netflix has been building an ad-supported service to reel in price-sensitive viewers, though it has said advertising will not be a primary driver of revenue growth this year. The company also has added live events such as WWE wrestling to draw advertisers and viewers.
For April to June, Netflix posted diluted earnings per share of $7.19. That topped the $7.08 consensus estimate of analysts polled by LSEG.
The company raised revenue guidance for 2025 to $44.8 billion to $45.2 billion, citing the weakening of the US dollar plus "healthy member growth and ad sales." Its previous guidance was up to $44.5 billion.
Investing.com analyst Thomas Monteiro said investors were expecting "a much stronger upward revision" to 2025 guidance.
"The full-year outlook now feels quite conservative, which is problematic for a stock priced for perfection," Monteiro said.
"At this stage, the company appears overly dependent on further price increases – at least through 2026 – to drive revenue," he added.
For the just-ended quarter, net income came in at $3.1 billion, edging forecasts of $3.06 billion. Revenue totaled $11.08 billion, above the $11.07 billion analyst projection.
Netflix released the third and final season of dystopian Korean drama Squid Game a few days before the second quarter ended in June.
The show is the most popular non-English Netflix show in the streaming service's history. Season three racked up 122 million views, Netflix said.
Other releases during the quarter included Sirens, The Four Seasons and a third season of Ginny & Georgia.
The streaming video pioneer stopped disclosing quarterly subscriber numbers this year, instead urging investors to focus on profit as a measure of its success. It said member growth was ahead of its forecast but occurred late in the quarter, which limited the impact on second-quarter revenue.
The company has new seasons of two of its biggest shows coming later this year. Wednesday returns in August, and the final episodes of Stranger Things will be released in November and December.
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Express Tribune
3 hours ago
- Express Tribune
India seeks to recalibrate China ties
United States President Donald Trump's lunch meeting with Chief of Army Staff (COAS) Field Marshal Syed Asim Munir prompted a private diplomatic protest from India in a warning to Washington about risks to their bilateral ties while New Delhi is recalibrating relations with China as a hedge, officials and analysts said. The meeting and other tensions in the US-India relationship, after decades of flourishing ties, have cast a shadow in trade negotiations, they said, as Trump's administration weighs tariffs against one of its major partners in the Indo-Pacific. India blames Pakistan, especially the military establishment, for supporting what it alleges is cross-border terrorism and has told the US it is sending the wrong signals by wooing Field Marshal Munir, three senior Indian government officials directly aware of the matter told Reuters. It has created a sore spot that will hamper relations going forward, they said. US-India ties have strengthened in the past two decades despite minor hiccups, at least partly because both countries seek to counter China. The current problems are different, said Michael Kugelman, a Washington-based senior fellow at the Asia Pacific Foundation think tank. "The frequency and intensity with which the US is engaging with Pakistan, and seemingly not taking Indian concerns into account, especially after India's recent conflict with Pakistan, has contributed to a bit of a bilateral malaise. "The concern this time around is that one of the triggers for broader tensions, that being Trump's unpredictability, is extending into the trade realm with his approach to tariffs," he said. Prime Minister Narendra Modi's office and India's foreign ministry did not respond to a request for comment. The foreign ministry has previously said that it had "taken note" of the Trump-Munir meeting. A US official said they do not comment on private diplomatic communications and that the US enjoys strong relationships with both India and Pakistan. "These relationships stand on their own merits, and we do not compare our bilateral relationships with one another," the US official said. The US seems to have taken a different tack on Pakistan after a brief conflict broke out between the nuclear-armed rivals in May when India launched strikes on what it called terrorist targets across the border in response to a deadly attack on tourists in IIOJK. A few weeks after the May fighting, Trump hosted Field Marshal Munir for lunch at the White House, a major boost in ties with the country, which had largely languished under Trump's first term and Joe Biden. It was the first time a US president had hosted the head of Pakistan's army at the White House unaccompanied by senior Pakistani civilian officials. COAS Munir's meeting in the White House added to India's chagrin over Trump's repeated insistence that he averted nuclear war between the two nations by threatening to stop trade negotiations with them. The comment drew a sharp response from Modi, who told Trump that the ceasefire was achieved through talks between army commanders of the two nations, and not US mediation. In the days following his June 18 meeting with COAS Munir, people from Modi's office and India's national security adviser's office made separate calls to their US counterparts to register a protest, two of the officials said. The protest has not been previously reported. "We have communicated to the US our position on cross-border terrorism, which is a red line for us," said a senior Indian official. "These are difficult times Trump's inability to understand our concerns does create some wrinkle in ties," he added, seeking anonymity due to the sensitivity of the matter. Trump and COAS Munir discussed continuation of a counterterrorism collaboration, under which the US has previously provided weapons to Pakistan, a non-Nato US ally, and talked about ways to further strengthen ties, a readout of the meeting from the Inter-Services Public Relations said. That raised concern in New Delhi that any arms Pakistan receives from the US could be turned on India if the neighbours end up in conflict again, two of the officials said. Harder stance Despite what used to be public displays of bonhomie between Trump and Modi, India has been taking a slightly harder stance against the US in recent weeks, while trade discussions have also slowed, the Indian officials and an Indian industry lobbyist said. Modi declined an invitation from Trump to visit Washington after the G7 meeting in Canada in June. Earlier this month, New Delhi proposed retaliatory duties against the US at the World Trade Organisation, showing trade talks were not going as smoothly as they were before the India-Pakistan clashes. India, like other nations, is trying to figure out a way to deal with Trump and is recalibrating ties with China as a hedge, said Harsh Pant, foreign policy head at India's Observer Research Foundation think tank. "Certainly there is an outreach to China," he said. "And I think it is mutual China is also reaching out".
Express Tribune
4 hours ago
- Express Tribune
Humayun on another high
With the release of Love Guru last month and Main Manto Nahi Hoon airing this Friday, Humayun Saeed reflected on what keeps him motivated to entertain the Pakistani audience. The actor appeared in an episode of Geo Podcast with Mubashir on Friday, where he talked about his love for cinema and how he acted in his first drama while working at a factory. "I was a general manager and made sure shipments were released on time. My brother was paralysed at the time so I needed the money. That factory really taught me how to work hard," said Saeed. "At the same factory I once acted in a play at a celebration party and my boss, who was a part time model, suggested that I act in TV dramas. He referred me to a couple of places and I did my first drama, Karoron Ka Aadmi in 1995." "My father was a religious man. He would not have approved of acting so I hid my first TV drama from him." he laughingly recalled. "Eventually people started telling him, 'Your son looked good on TV', and my secret was out!" Saeed moved on from it after his first project. "I forgot about acting after my first job, I thought that was it. But after a few days, I started getting more offers." said Saeed. "I left my job at the factory then and shifted to acting." Launching local films Saeed was one of the first actor-producers to give Pakistani feature films a try. His films Main Hoon Shahid Afridi and Jawani Phir Nahi Aani were released in 2013 and 2015, respectively. "They were a risk at that time," he shared. "I invested PKR700,000 in the first film and did not make as much in return. People were quizzical about this decision but I kept creating more." "And I was right," he added. " I put in PKR600,000 into making Jawani Phir Nahi Aani and it made around PKR5 million at the box office. The film was not dead. People were interested in watching if given the right content." The actor was nervous about making another feature hit after the first one."Jawani Phir Nahi Aani had four male leads so it had more chances of being a success," Saeed remarked. "I had to do a solo male lead film after that and people challenged me. 'Let's see if you can make this work,' they said - and I did make it work. Punjab Nahi Jaungi then released worldwide in 2017 and it made even more than the first two." The producer shared his two cents about recent India-Pakistan tensions as well. "It was really upsetting that Sardaar Ji 3 did not release in India just because it had a Pakistani actor. Hania Amir was casted when relations between the two countries were good. Imagine the financial loss it must have been for the producers, it's extremely sad," he said. Insights on Pakistani TV Regarding his three-decade experience in TV, he said, "Pakistan makes some of the cheapest dramas cost wise around the world. Yet they are still watched so much." Saeed played Lady Diana's love interest, Dr. Hasnat, in UK based Netflix series The Crown, in 2022. "While I was working for the team, I saw that the show was directed by five different directors. Each director came with their own team that had people to research and make the creative decisions. That takes money," noted the actor. "Pakistan does not currently invest on that big of a scale on TV dramas. Imagine how far our TV shows will go if we put in that much money too. And we aren't short of talent," added Saeed. Talking further about his role as Dr. Hasnat, the star recalled, "I had COVID-19 when I was asked to audition for The Crown. They gave me the script and told me to record myself playing the scene. I was asked not to tell anyone else about it." "They really loved my work," he continued. "I gave a second audition but then didn't hear back for a while. I thought the role was given to someone else. Twenty days later, I received a call. I had bagged it!" Saeed smiled and shared, "While I prefer to work in my own country, I was really proud to play a Pakistani character. Moreover, working in Hollywood was an experience of its own. I was really nervous because my part had a kissing scene too. But the team was really confident in my skills and it ended up going well." Saeed is all set to appear in Main Manto Nahi Hoon alongside Sanam Saeed and Sajal Ali. His film opposite Mahira Khan, Love Guru was released on June 6 and is playing successfully in cinemas worldwide. For future, Saeed eagerly revealed, "I have a couple of dramas lined up that will be completed soon. I am also aiming to release at least two movies this year, one romantic and one action. I want to play the lead in both."
Express Tribune
4 hours ago
- Express Tribune
Colbert's axing signals TV's plummeting popularity
Late-night television had been fighting for its survival even before The Late Show with Stephen Colbert was cancelled this week, reported Reuters. The announced end of one of the most popular broadcast late-night shows, days after host Colbert accused the network owner of bribing President Donald Trump to approve a merger, drew cries of political foul play from liberal politicians, artists and entertainers. "Stephen Colbert, an extraordinary talent and the most popular late-night host, slams the deal. Days later, he's fired. Do I think this is a coincidence? NO," Vermont Senator Bernie Sanders, an independent, wrote on X. CBS executives said in a statement that dropping the show was "purely a financial decision against a challenging backdrop in late night. It is not related in any way to the show's performance, content or other matters happening at Paramount." Whether or not politics were at play, the late-night format has been struggling for years, as viewers increasingly cut the cable TV cord and migrate to streaming. Younger viewers, in particular, are more apt to find amusement on YouTube or TikTok, leaving smaller, ageing TV audiences and declining ad revenues. Advertising revenue for Colbert's show has dropped 40 per cent since 2018 - the financial reality that CBS said prompted the decision to end The Late Show in May 2026. One former TV network executive said the program was a casualty of the fading economics of broadcast television. Fifteen years ago, a popular late-night show like The Tonight Show could earn $100 million a year, the executive said. Recently, though, The Late Show has been losing $40 million a year, said a person briefed on the matter. The show's ad revenue plummeted to $70.2 million last year from $121.1 million in 2018, according to ad tracking firm Guideline. Ratings for Colbert's show peaked at 3.1 million viewers on average during the 2017-18 season, according to Nielsen data. For the season that ended in May, the show's audience averaged 1.9 million. Comedians like Colbert followed their younger audiences online, with the network releasing clips to YouTube or TikTok. But digital advertising did not make up for the lost TV ad revenue, the source with knowledge of the matter said. The Late Show with Stephen Colbert is just the latest casualty of the collapse of one of television's most durable formats. When The Late Late Show host James Corden left in 2023, CBS opted not to hire a replacement.
