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Photo = Yonhap news |
[Alpha Biz= Paul Lee] Netflix, the world’s largest streaming platform, reported stronger-than-expected second-quarter earnings, driven in part by the sustained global popularity of its Korean content lineup.
On July 17 (local time), Netflix announced Q2 revenue of $11.079 billion, up 15.9% year-over-year, and earnings per share (EPS) of $7.19. Both figures slightly exceeded Wall Street estimates compiled by LSEG, which forecast revenue of $11.07 billion and EPS of $7.08.
Operating profit surged 45% year-over-year to $3.775 billion, while the operating margin rose to 34.1%, up from 31.7% in the previous quarter and 27.2% a year earlier.
The company also raised its full-year revenue guidance from $43.5–44.5 billion to $44.8–45.2 billion, citing the weakening dollar, continued subscriber growth, and strong advertising revenue.
However, Netflix warned that its operating margin may decline in the second half due to amortization costs and marketing expenses related to upcoming large-scale content releases.
Among its Q2 hits, Netflix highlighted the global success of the Korean animated feature KPop Demon Hunters and the third season of Squid Game. According to Netflix, KPop Demon Hunters logged 80 million views in its first 91 days, while Squid Game: Season 3 recorded 122 million views in the same period.
KPop Demon Hunters has become one of Netflix’s most successful animated features to date, with its soundtrack topping the Billboard charts and dominating Spotify’s global playlists, the company said.
With Netflix shares already up roughly 43% year-to-date, investors are watching closely to see if the momentum—backed by compelling Korean content—can continue into the second half of the year.
AlphaBIZ Paul Lee(hoondork1977@alphabiz.co.kr)
