Netflix beats expectations on profit and subscribers

SAN FRANCISCO - Netflix topped expectations as it reported 9.3 million new subscribers and profits of $2.3-billion in the first three months of the year.

Silicon Valley-based Netflix had bet heavily on its content lineup to win fans, with subscribers now totalling 269.6 million.

"With more than two people per household on average, we have an audience of over half a billion people," Netflix said in a letter to investors.

"No entertainment company has ever programmed at this scale and with this ambition before."

Netflix shares slipped more than 3 percent to $589.64 in after-market trades, apparently due to the company saying sales in the current quarter might be less than market expectations.

Netflix took in $1-billion more in profit in the quarter than it did in the same period a year earlier, according to earnings figures.

Reported revenue in the recently-ended quarter was $9.4-billion compared with $8.2-billion in the same period last year.

Netflix shares have climbed since the start of this year as subscriber numbers have grown amid a crackdown on password sharing.

In a separate bid for revenue, Netflix launched an ad-subsidized offering around the same time as the crackdown on sharing passwords outside of homes.

Netflix unveiled a sprawling TV and film lineup early this year as it bet that must-see content would keep viewers paying for the streaming service.