Netflix reports higher than forecast profit

NETFLIX reported a higher-than-expected profit for the second quarter, as the company added subscribers to its video streaming service, though not as many as analysts had hoped for.

Shares of Netflix fell five per cent in after-hours trading to $248.00 (£161.45), down from their earlier $261.96 close on the Nasdaq.

Netflix signed up 630,000 new streaming customers in the United States, in the middle of a forecast the company issued in April. The average forecast from Wall Street analysts was 700,000.

Netflix said it had recorded net income of $29m for the quarter, compared with $6m in the same period a year ago.