No Stopping Netflix Shares

Shares in the online movie rental service jump on bullish subscription figures.
Publish date:

Market highflier


(NFLX) - Get Report

jumped again Thursday, after the online movie rental service said subscriptions rose more than 80% in the past 12 months.

The Los Gatos, Calif.-based company said the number of subscribers through the end of its first quarter rose 84% year over year to 1.93 million. Subscriptions were up 30% from the end of the fourth quarter of 2003.

Shares rose 88 cents, or 2.6%, to $35 and are up 35% so far this year after a fivefold increase in 2003.

The company said TV advertising, online acquisition sources and a low churn rate contributed to the increase.

Netflix releases first-quarter 2004 results on April 15. Analysts expect the company to report a net loss of $4.2 million, or 3 cents a share, on revenue of $99.5 million.

For the fiscal year ended Dec. 31, revenue increased 78% to $272.2 million. Net income rose to $6.5 million versus a loss of $20.9 million the previous year. The company went public in 2002.