International customers increased by 2.60 million to 20.88 million, and revenues rose to USD 415 million from USD 267 million a year ago. The operating loss from the international activities narrowed to USD 65 million from USD 79 million in Q4, but Netflix said this will swell again to over USD 100 million in Q2 following its recent launch in Australia and New Zealand.
Total operating profit for Q1 was little changed year-on-year at USD 97 million, while net income more than halved to USD 24 million, hurt by negative currency effects. Free cash flow was a negative USD 163 million as the company continues to invest in original content.
For the second quarter, Netflix expects net additions in the US to slow to around 0.6 million, and its international markets to gain around 0.9 million customers. The company plans to launch in more countries later this year, starting with Japan. Revenue in the second quarter is expected to grow to around USD 1.474 billion versus USD 1.400 billion in Q1, while net profit drops to an estimated USD 16 million.