Netflix Soars After Subscriber, International Gains

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Netflix Inc., the top stock in the Standard & Poor’s 500 this year, soared to a record high after reporting subscribers to its Internet TV service increased to 65.6 million in the second quarter.

Netflix climbed 18 percent to $115.81 at the close in New York following the second-quarter results. That matched the gain recorded three months ago, when the company also reported better-than-expected new user data.

The subscriber results released Wednesday by Los Gatos, California-based Netflix highlight its progress building the first global Internet TV channel, fueled by new shows such as “Daredevil” and “Sense8.” At the same time, profit fell in the quarter as the company poured money into new programming, spending that will exceed $6 billion next year.

Netflix’s strongest growth was in international markets, where subscribers jumped 2.37 million to 23.3 million, the company said on its website. That beat the 1.94 million average of five analysts’ estimates compiled by Bloomberg News. Domestic subscribers grew by 900,000 to 42.3 million, beating estimates of 636,000.

The company expanded to New Zealand and Australia in March, and will offer its service in Japan, Spain, Italy and Portugal later this year. International subscribers now account for 31 percent of Netflix’s streaming revenue, and the company said it’s profitable in several of the foreign territories where it first offered service.

(Corrects wording to reflect total subscribers in first paragraph.)
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