Netflix (NSDQ: NFLX) reported Q2 revenue of $337.6 million, an 11 percent increase from $303.7 million a year ago. Net income was up just 3 percent to $26.6 million. A significant reduction in shares outstanding, however, meant that EPS rose 13.5 percent to $.42 per share from $.37 per share. That surpassed analyst estimates of $.40 per share, and the company raised its full year outlook slightly. Total subscribers now stand at 8.4 million, a 25 percent year-over-year gain. Net subscriber adds for the quarter were 168,000, compared to a decline of 55,000 a year ago.
Subscriber acquisition costs were way down in the quarter from last year: $28.95 vs. $44.02. The company says it's the lowest in its history, and it continues a trend seen last quarter, as competition with Blockbuster (NYSE: BBI) abates. Churn was also down year-over-year, to 4.2 percent from 4.6 percent.
There's no data on the company's various initiatives to stream video online, but that's to be expected. Perhaps on the call we'll get some more info on the extent to which these initiatives are catching with consumers, and how much money they plan on spending to support them.
By Joseph Weisenthal