Netflix 2Q Profit Up
Los Gatos, Calif. Netflix Inc.'s second-quarter profit edged up 4%, beating analyst expectations as the online DVD-rental leader signed up 168,000 new customers while spending less money to attract them to the service.
The company said Friday that it earned $26.6 million, up from $25.6 million in the same period a year ago.
Revenue climbed 11% to $337.6 million to match analyst estimates. The company ended June with 8.4 million subscribers.
Netflix boosted its profit margin largely by trimming its marketing expenses by $5 million, or 11% from the same time last year. Despite the cutback, Netflix had far more success luring new subscribers than last year when it lost 55,000 customers—the only quarter that the company's service has shrunk during its 9-year history.