Q2 Profit for Netflix

LOS GATOS: Despite returning to profit in the second quarter on improved revenues of $889 million, Netflix saw its share price fall today as investors reacted to the company’s cautious outlook for subscriber growth this year.

The company reported a profit of $6 million, as compared with a $5 million loss in Q1. Subscriber growth has slowed for the platform in Q2, with a net subscriber addition of 530,000 streaming customers in the U.S. in the period, down from 1.74 million in Q1. The total number of streaming customers is 24 million, delivering revenues of $533 million and a profit of $83 million. In its outlook, Netflix cautioned that the Olympics will have a negative impact on usage and signups. It is forecasting 1 million to 1.8 million net adds in Q3 and noted that it may be "challenging" to reach its target of 7 million net adds this year.

Internationally, Netflix added 560,000 customers in the period, down from 1.2 million in Q1, for a total of 3.62 million total subscribers. The international segment delivered revenues of $65 million and posted a loss of $89 million. Following its rollouts in Canada, the U.K., Ireland and Latin America, Netflix is looking to launch in an "additional attractive European market" in Q4.

The company lost 850,000 DVD customers in Q2, leaving a total of 9.24 million customers.