Netflix Shares Sink as Quarterly Profit Misses Mark

Netflix shares sank this week after the streaming television powerhouse reported quarterly profit that fell short of market expectations, Agence France-Presse (AFP) reported.

Netflix is banking heavily on hit shows such as "Stranger Things" for a boost. (Photo: Stranger Things)

Netflix recorded a profit of $2.5 billion on revenue of $11.5 billion in the recently ended quarter, saying it was hit with a $619 million expense due to an ongoing dispute with Brazilian tax authorities.

The company said in a letter to shareholders that, absent the cost in Brazil, it would have exceeded its operating margin forecast for the quarter.

“We don’t expect this matter to have a material impact on future results,” Netflix said in the letter.

Netflix shares were down more than five percent to slightly above $1,173 in after-market trading following the release of its earnings figures.

Netflix viewership in Britain and the United States reached their highest levels in about three years, powered by a lineup that included its most popular film ever, KPop Demon Hunters, according to the earnings release.