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(Sharecast News) - Shares in Netflix jumped on Wednesday, after the US streaming giant posted bumper fourth-quarter numbers and confirmed it had upped prices following a hike in subscriber numbers.
Boosted by popular shows such as the second season of Squid Game, and the growing popularity of live events - including Beyoncé's Super Bowl performance and boxing - Netflix said it had added 18.9m subscribers in the fourth quarter.
That brought its total global subscriber base to nearly 302m customers, well ahead of rivals such as Disney+ and Apple TV.
It also raised prices in the US, Canada, Portugal and Argentina, as it splashed out more on programming. It spent a total of $17bn on programming in 2024 and expects that to rise by $1bn in the current year.
As at 1030 GMT, the Wall Street stock, which posted the earnings after the closing bell on Tuesday, had put on 14% in pre-market trading.
In total, fourth-quarter revenues surged 16% to $10.2bn, while diluted earnings per share beat expectations, rising to $4.27 from $2.11 year-on-year.
It also struck an upbeat tone looking to the year ahead. As well as Squid Game, other popular shows due to air in 2025 include Wednesday and Stranger Things.
Netflix is currently forecasting revenues of $10.4bn in the first quarter, with EPS of $5.58. Full-year revenues are expected to come in between $43.5bn and $44.5bn, around $500m more than its previous forecast range.
Netflix noted: "We enter 2025 with strong momentum, coming off a year with a record net additions and having re-accelerated growth.
"Moreover, we're in a leadership position in terms of engagement, revenue and profit in a market that is continuing to expand."
Dan Coatsworth, investment analyst at AJ Bell, said: "Netflix has proved its success is not waning. It has achieved the perfect four: every quarter in the 2024 financial year beat earnings expectations. The last time it achieved that was in 2018.
"With more people signing up to use its services, the business is looking financially strong and strategic growth plans are yielding great success. It's not a surprise that Netflix feels comfortable in raising prices."