Netflix shares rose more than 10% to a record high on strong fourth-quarter earnings.
The U.S.-based streaming technology giant benefited from its live sports programming, such as the Jake Paul-Mike Tyson match, which led to record user registrations, Euronews reported.
The company added 19 million new subscribers during the quarter, bringing its global user count to 302 million. The increase in the number of users for the quarter exceeded double analysts' estimates, supported by the fight against password sharing.
However, this is the last quarter in which Netflix reported subscription numbers. The company informed that it is shifting its focus to more traditional metrics such as profit margin and revenue growth.
Netflix explained its strong growth with a combination of hit content and special event programming.
Among the highlights were "The Squid Game," Season 2, "Carry-On" and live sports shows such as the Jake Paul-Mike Tyson fight, NFL games and the "Beyoncé Bowl."
In addition, the company has secured the rights to broadcast in the U.S. the Women's World Cup in 2027 and 2031, underscoring its commitment to "can't-miss special event programming."
The ad-supported tier was a major driver of user growth in the quarter, accounting for 55% of registrations in ad-supported states.
The number of members at this level increased nearly 30% year-over-year.
"Our top priority in 2025 is to improve our offering for advertisers, which will enable significant ad revenue growth," the company said.
"Netflix is becoming a one-stop entertainment shop that delivers exceptional value for investors. The ad-supported tier expands the user base while attracting premium advertisers," said Josh Gilbert, market analyst at eToro.
The company's total revenue increased 16% year-over-year to $10.25 billion, beating analysts' expectations of $10.11 billion. Earnings per share totaled $4.27, compared with $2.11 in the same quarter a year earlier.
Operating margin, however, fell to 22%, the lowest level in 2024, reflecting significant investment in live sports programming.
For the full year, total revenue rose 16% and net profit jumped 62%. | BGNES
