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Netflix second quarter subscriptions far outpace expectations

Netflix said it plans to reach 200 countries by the end of 2016, including China
Netflix said it plans to reach 200 countries by the end of 2016, including China

Netflix added nearly a third more subscribers than expected in the second quarter, sending its shares up over 9% as the video streaming service said its investment in original television programs and movies was paying off. 

Net subscriber additions rose about 94% year over year to about 3.3 million in the second quarter, beating the company's forecast of 2.5 million.

The distributor of "House of Cards" said its new original shows were drawing customers faster than it had forecast.

Netflix also is aggressively expanding around the world, accounting for the bulk of new subscriptions. 

A trend of slowing US growth was halted in the quarter as the number of new US customers rose about 50% higher than the company had forecast.

The company said it plans to reach 200 countries by the end of 2016, including China, where it said it was "continuing to explore options.".

The company, which approved a 7-for-1 stock split in June, added 2.4 million customers in international markets in the quarter, taking its total to more than 65 million users worldwide.

Netflix forecast adding about 1.2 million customers in the US in the current quarter. It said it expected to add about 3.6 million subscribers worldwide.

Revenue jumped 22.7% to $1.64 billion in the second quarter ended June 30, from $1.34 billion a year earlier, the company said. 

But its net income fell to $26.3m, or 6 cents per share, from $71m, or 16 cents per share a year earlier, hit by the costs of its overseas expansion. 

Analysts on average had expected a profit of 4 cents per share on revenue of $1.65 billion, according to Thomson Reuters I/B/E/S. 

Netflix also said it supported Charter Communications' proposal to buy rival cable operator Time Warner Cable, after Charter committed to open and free interconnection across its network.