Spending $15 billion on film and TV in 2019, the streamer may need to continue raising debt for a few more years before turning free cash flow positive.
To chill or not? Netflix investors are debating the streamer's outlook more than ever after it lowered its subscriber growth forecast for 2019 on Oct. 16 ahead of November's launch of competitors from Disney and Apple.
In its third-quarter earnings letter to shareholders, the company also said it would continue raising financing via debt in the near future. "Our plan is to continue to use the [debt] market in the interim to finance our investment needs," it said. Blackledge said the company’s multi-year move from licensing to more original content will allow it to turn free cash flow positive as content spending growth slows. In a report, he also noted that management's 2019 guidance "implies a roughly 1.6 time cash content spend to profit and loss content amortization ratio, in line with '18." He expects "this ratio to moderate" in the coming years.
Pivotal Research Group analyst Jeff Wlodarczak, who had forecast accelerating free cash flow losses through 2022, after Netflix's latest earnings update tweaked his free cash flow loss estimates "lower materially" and boosted his stock price target by $50 to $400.
France Dernières Nouvelles, France Actualités
Similar News:Vous pouvez également lire des articles d'actualité similaires à celui-ci que nous avons collectés auprès d'autres sources d'information.
Netflix is testing a variable playback speed feature on mobile - Business InsiderNetflix told Business Insider that it's 'always experimenting with new ways to help members use Netflix' and that it may not become permanent.
Lire la suite »
Stronger winds whip California fires as power cut and homes evacuatedWind-driven wildfires burned largely uncontrolled in tinder-dry California early...
Lire la suite »
Why are the California wildfires so intense right now?The Kincade Fire in Sonoma County has now burned an area of more than 60,000 acres.
Lire la suite »
This Is What a Calm California Wildfire Season Looks Like NowThere are, right now, more than a dozen major fires burning across California. And this still counts as a light year. dwallacewells writes
Lire la suite »
New Elena Ferrante Novel AlertAnd we finally have a title and a publication date for it.
Lire la suite »