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Netflix, Inc. Message Board

  • singhlion2001 singhlion2001 Jan 23, 2013 5:29 PM Flag

    RED ALERT IN USA =WHAT A SCAM "E' REPORTS SPINS VS REAL FINANCIAL FACTS??????LOOK AT THIS $51M+ NEGATIVE CASH FLOW

    RED ALERT IN USA =WHAT A SCAM "E' REPORTS SPINS VS REAL FINANCIAL FACTS??????LOOK AT THIS $51M+ NEGATIVE CASH FLOW
    AS DVD BY MAIL GETS KILLED NEXT THIS FRAUD WILL go pink sheets

    FRAUD FRAUD PONZI BY ORGANIZED NEXUS SCAM GANG ..MASSIVE FRAUD MANIPUALTION SCAM CONTINUES WITH MASSIVE PRICE/VOLUME DISTORTION

    HANG S.E.C. CRIMIAL WATCH PARASITES AND CRIMINAL MEDIA SHILLS PUMP FRAUD NETFLIX AND BASH APPLE?

    International
    During the quarter, we grew to over 6 million international members, as people around the world
    discover the benefits of Netflix.
    Our total international contribution loss of $105 million in Q4 was, as expected, higher than the prior
    quarter international loss of $92 million, owing to the incremental costs associated with our launch in
    the Nordic countries. The Q4 loss was lower, however, than our guidance midpoint of a $113 million
    loss, due primarily to the higher than expected growth of international subscriptions and revenue.
    Over the course of this year, we expect to see declining losses in our current international markets as
    member growth exceeds growth in content spending. With a Q1 guidance midpoint of $87 million in
    international losses, we expect a sequential improvement of $18 million, with more modest sequential
    improvements expected in subsequent quarters.
    -------------------------------------
    DVD
    DVD memberships declined less than we had anticipated this quarter to 8.2 million (above the top end
    of our guidance range), driven by stronger than forecasted retention. The decline has slowed in each
    quarter since we introduced the DVD-only plan.
    The domestic DVD segment delivered $128 million of contribution profit in Q4, representing a 50%
    contribution margin, higher than anticipated due to higher members and lower than expected DVD
    usage. We anticipate a decline in DVD contribution margin sequentially from Q4 to Q1 as usage
    seasonally increases in Q1 and the expected USPS rate increase of $0.01 each way takes effect in
    January.
    The US Postal Service is under financial stress, but we don’t foresee service changes this year that have a
    material negative impact upon us or our members.
    Global Profitability: Q4 Results & Q1 Outlook
    Consolidated Q4 net income of $8 million ($0.13 EPS) exceeded our guidance due to contribution profit
    out-performance primarily in our domestic and international streaming segments. Net income was flat
    quarter over quarter, as increased domestic streaming contribution profit (up $18 million) more than
    offset a $3 million decline of DVD contribution profit, and a $12 million increase in international losses
    (driven by the launch of the Nordics market), while global operating expenses were flat sequentially.
    We anticipate net income will be relatively flat quarter over quarter in Q1, as improvements in both
    domestic and international streaming profits will be offset by a decline in DVD contribution profit and
    increases in global operating expenses.
    Free Cash Flow & Capital
    In Q4, the gap between free cash flow (negative $51 million) and net income (positive $8 million)
    widened as a result of payments for the original programs coming to Netflix in 2013. Significant uses of
    cash in the quarter (relative to net income) were cash payments for both originals and non-originals
    content (in excess of the P&L expense), cash payments for PP&E (related to the continued rollout of our
    Open Connect servers), and tax payments.
    In the past, we have managed our content licensing agreements such that cash payments in any quarter
    do not exceed 110% of the P&L expense (in other words, if our P&L expense was $200 million in the
    quarter, our cash payments for content would not exceed $220 million in the quarter). As we shared on
    our last earnings call, our original programming will require more up-front cash payments than most
    other content licensing agreements, raising this ratio (of cash to P&L for content) to as high as 120% in
    certain quarters with material originals payments. The bulk of our remaining cash payments for our
    current originals will be in Q1, driving FCF materially more negative than Q4, and then FCF will improve
    substantially in subsequent quarters.
    As highlighted previously, we have sufficient cash on hand to fund our current slate of originals and
    ongoing expenses, and to maintain an adequate reserve, before returning to positive FCF.
    In addition, we are exploring taking advantage of the current low interest rate environment to refinance
    our $200 million in outstanding notes and raise additional cash through new debt financing. This would
    give us additional reserves as well as increased flexibility to fund future originals.

    Sentiment: Strong Sell

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    • This reed hastings #$%$ kept dumping content to spin scam profit for fraud loot scam again this quarter:

      next quarter criminal mf thug hastings will have no place to hide for his fraud again................

      competition from redbox/redboxinstant streaming will bust dvd by mail much faster again......

      streaming is all fraud loss hell future here..nothing more

      Sentiment: Strong Sell

 
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