Business

Netflix’s 2nd Quarter Earnings Plunge

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Netflix headquarters

A sign outside Netflix headquarters in Los Gatos. (AP)

SAN FRANCISCO (CBS AP) – Netflix says its second-quarter earnings plunged 91 percent amid a slowdown in subscriber growth.

The financial deterioration reported Tuesday follows a rare loss for Netflix during the opening three months of the year.

In the latest quarter, Netflix Inc. added 1.1 million worldwide subscribers to its service that streams unlimited video over TVs and other Internet-connected devices for $8 per month.

The second-quarter subscriber gains were in line with management predictions, but analysts had hoped for more. They were well below the nearly 2 million customers picked up at the same time last year.

Netflix earned $6.2 million, or 11 cents per share, in the quarter. That compared with $68 million, or $1.26 per share, a year ago.

Revenue rose 13 percent to $889 million to match analyst estimates.

(Copyright 2012 by CBS San Francisco. All Rights Reserved. This material may not be published, broadcast, rewritten, or redistributed.)

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