| (Photo = Yonhap News) |
[알파경제=김민영 기자] Netflix (NFLX) is expected to improve its performance through its content lineup in the fourth quarter.
Lee Ji-su, a researcher at Korea Investment & Securities, said, “Netflix is expected to report strong performance starting from the fourth quarter due to ‘Squid Game Season 2’ to be released in December, NFL (American Professional Football League) to be broadcast live from Christmas, and WWE broadcast to start in 2025. “I expect improvement,” he predicted.
It was announced that the professional boxing heavyweight match ‘Jake Paul vs. Mike Tyson’, which was broadcast live on Netflix, was watched in real time by a total of 60 million households around the world, and simultaneous streaming reached up to 65 million.
Researcher Lee Ji-su said, “Netflix’s live sports broadcasting service is expected to increase the number of advertising subscribers and MAU and increase advertising revenue,” and concluded, “We must pay attention to the expansion of Netflix’s advertising business.”
For ‘Squid Game Season 2’, which will be released on December 26th, Netflix has partnered with advertisers in 12 countries to support advertising.
Additionally, NFL game broadcasts said they were sold out of ad inventory available for sale.
Netflix achieved 70 million advertising plan subscribers, which corresponds to 50% of new subscribers in countries where it launched the advertising plan.
It is predicted that Netflix advertising revenue will significantly contribute to sales starting in 2026.
According to Korea Investment & Securities, Netflix’s fourth quarter sales are expected to grow by 15% compared to the previous year, which is at the upper end of the 2024 sales growth guidance of 14-15%.
Profitability is also expected to improve as the 2024 operating profit margin guidance has been raised from 26% to 27% following the second quarter.
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| Netflix stock diagnosis (Source = Choice Stock) |
Netflix presented its 2025 sales guidance as $43-44 billion, an 11-13% increase from the previous year. Additionally, the operating profit margin guidance for 2025 is expected to be 28%, which is higher than the previous year.
Researcher Lee Ji-su predicted, “ARM (average revenue per member) growth through paid account sharing and abolition of the basic plan will continue in the fourth quarter.”
Accordingly, we maintained a positive opinion on Netflix, which is expected to improve profitability through content capabilities and sales diversification.
Reporter Kim Min-young of Alpha Economy ([email protected])
