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Netflix loses $19 billion in market value, cites weak subscriber growth

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Netflix stock fell by 8 per cent on Friday, recording a loss of $19 billion for the video-streaming giant’s market capitalization. The revenues fell despite subscriber growth predictions in the quarter.

According to the company, the decline is due to the struggling subscriber growth projected by the company in the second quarter.

The company’s earnings per share (EPS) were $1.59 which was less the projected figure of $1.81. It also posted revenue earnings of  $6.15 billion higher than the projected $6.08 billion, according to Refinitiv. Also recording Global paid net subscriber additions of 10.09 million.

In Q1, Netflix’s revenues grew by 25 per cent. Netflix reported $1.57 Earnings Per Share (EPS) $5.77 billion in revenue and 15.77 million global paid net subscriber additions. The revenues in Q2 were average considering the surge in subscribers.

Its EPS figure was also below the projected $1.81 a $0.24 rise from the Q1 figure which was reported at $1.57. The earnings release also dropped because Netflix had expected to add only 2.5 million subscribers this quarter, or less than half of what Wall Street expected.

Going forward in 2020, the company does not project its slate of content to be significantly impacted by production shutdowns created by the pandemic. It expects that current production setbacks will push more of its big titles to the end of 2021, but that the “total number of originals for the full year will still be higher than 2020.” Netflix plans to supplement its original content with other films and shows it’s acquired.

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The company also slashed its marketing costs by 28 per cent and spent less on content production as television and movie sets were shut down. The upshot was a 92 per cent increase in the operating income and a 163 per cent rise in earnings per share, to $1.63.

Netflix co-CEOs Reed Hastings and Ted Sarandos also said in a letter to shareholders that they anticipated a year-on-year slowdown because the pandemic pulled forward demand and new seasons of “Stranger Things” and “Money Heist” that had inflated subscriber growth in the third quarter of 2019.

So far, it has resumed some production in Europe as well as two stop-motion animation projects in Oregon and two films in California. But the company still warns that current infection trends create more uncertainty for the productions in the US.

Adding that it’s made the most progress resuming production in the Asia Pacific and never fully shut down in Korea.

“Parts of the world like India and some of Latin America are also more challenging and we are hoping to restart later in the year in these regions.” the company said.

Netflix provided third-quarter revenue guidance of $6.33 billion. It expects third-quarter earnings of $2.09 per share, above analyst estimates of $2.01. The company also expects 2.5 million net subscriber additions for the third quarter, while analysts were expecting 5.27 million.


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Haraka Haraka app to link customers with service providers

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A new App dubbed “Haraka Haraka” has today been unveiled in Kenya to help customers find the right service providers in their current location within a specified range of choice.

The platform was invented by three former Meru University of Science and technology students and with the app, they seek to make it easier for people to find services such as a plumber, retailers, shops and house agents that have been difficult to get physically.

The team, Mr Kelvin Muinde, Mr Pius Momanyi Nyachio and Mrs Naum Mutie said there are currently about 3,500 users who are potential clients and service providers on the platform who include carpenters, hairdressers, plumbers and mechanics, and more.

“We are taking away the burden of searching for experienced and reliable professional businesses in a hassle-free model to deliver critical services to individuals who are in need of their specific location,” said Pius Momanyi Nyachio who is the Marketing Manager.

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Mr Kelvin Muinde, who is the head of the project said the idea to start Haraka Haraka was initiated out of his observance of people having difficulty in finding a reliable service in an area that they are not well conversant with.

“The biggest challenge customers face is finding the right service providers at any area, mostly if you are not familiar, most people end up getting poor services that cost them time and resources,” he said.

To find any service or to register as a service provider, individuals are requested to first download the Haraka Haraka App on Google and register where later one can choose a range between 100m to 30km to find the service they are in need of.

The app also comes with an option of reviewing and rating a service provider which acts as an advantage to next service seekers enabling easy referrals to new clients.

‘’The registration to the app is free for both users and professionals,’’ said Mr Kelvin Muinde. The company’s aim is to hit 10,000 users by the end of this year. Ideally, they plan to have a maximum of 30,000 professionals on the platform.


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Haraka Haraka app to link customers with service providers

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A new App dubbed “Haraka Haraka” has today been unveiled in Kenya to help customers find the right service providers in their current location within a specified range of choice.

The platform was invented by three former Meru University of Science and technology students and with the app, they seek to make it easier for people to find services such as a plumber, retailers, shops and house agents that have been difficult to get physically.

The team, Mr Kelvin Muinde, Mr Pius Momanyi Nyachio and Mrs Naum Mutie said there are currently about 3,500 users who are potential clients and service providers on the platform who include carpenters, hairdressers, plumbers and mechanics, and more.

“We are taking away the burden of searching for experienced and reliable professional businesses in a hassle-free model to deliver critical services to individuals who are in need of their specific location,” said Pius Momanyi Nyachio who is the Marketing Manager.

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Mr Kelvin Muinde, who is the head of the project said the idea to start Haraka Haraka was initiated out of his observance of people having difficulty in finding a reliable service in an area that they are not well conversant with.

“The biggest challenge customers face is finding the right service providers at any area, mostly if you are not familiar, most people end up getting poor services that cost them time and resources,” he said.

To find any service or to register as a service provider, individuals are requested to first download the Haraka Haraka App on Google and register where later one can choose a range between 100m to 30km to find the service they are in need of.

The app also comes with an option of reviewing and rating a service provider which acts as an advantage to next service seekers enabling easy referrals to new clients.

‘’The registration to the app is free for both users and professionals,’’ said Mr Kelvin Muinde. The company’s aim is to hit 10,000 users by the end of this year. Ideally, they plan to have a maximum of 30,000 professionals on the platform.


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Balala wants investigation into alleged harassment at Ol Jogi launched – KBC

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Tourism Cabinet Secretary Najib Balala

Ministry of Tourism and Wildlife Cabinet Secretary Najib Balala has directed the Kenya Wildlife Service to commence investigations into the alleged harassment of a victim by private game ranchers at Ol Jogi Conservancy in Laikipia County.

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It is reported that the victim known as Mordecai Ogada in the company of his children was harassed on Saturday while driving on a public road in the conservancy.

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In a statement, Balala has asked for speedy investigations and findings to be concluded by Wednesday this week.

The CS added that no discriminations will be allowed to any Kenyan at any conservancy in the country.

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“The government of Kenya and my ministry will not condone any undue harassment or intimidation of Kenyans who are going about their normal businesses and enjoying their God given heritage by anyone,” said CS Balala.

He urged Kenyans to report any such incidents with facts for action to be taken.

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