Streaming company, Netflix, reported $10.5 billion revenue for the first quarter of 2025, representing a 13% growth year-on-year.
The company’s first-quarter earnings also rose by 25% to $6.61 a share, beating analysts’ estimates.
According to Netflix, the results were boosted by a recent price increase and a strong slate of programming across the globe, like the hit UK series Adolescence.
With a global audience of more than 700 million viewers, the company said it has seen no impact on its business from President Donald Trump’s tariffs or the market volatility that has followed.
“We’re paying close attention to consumer sentiment and where the broader economy is moving. Based on what we’re seeing, there is nothing significant to note,” co-Chief Executive Officer Greg Peters said on a call with analysts.
Strong margins, growing profit
Netflix’s operating income climbed 27% to $3.3 billion, outperforming projections of $3 billion.
The company also posted an operating margin of 31.7%, more than three percentage points above its own forecast — a testament to disciplined spending and the growing profitability of its global content machine.
- These earnings report also marked a strategic shift: Netflix no longer discloses the number of subscribers it adds or loses, a metric that once dominated investor attention.
- Instead, management is steering focus toward traditional financial performance indicators like revenue, profit, and margin.
- The pivot comes after Netflix closed 2024 with its best quarter ever, adding 18.9 million subscribers.
- But with growth expected to slow in 2025, especially following price increases in the U.S., its biggest market, the company is now turning its attention to extracting more value from existing users.
To drive revenue without relying solely on new subscriber signups, Netflix is expanding its ad-supported tier and testing new ad technologies in select markets.
Netflix is also implementing price hikes, including in France, as part of a broader effort to boost average revenue per user.
What you should know
In July last year, Netflix announced price increments across its markets. In Nigeria, its Premium Plan went up by 40% to 7,000 from N5,000 per month.
The July price increment made it the second price adjustment by the platform within the space of 3 months, having implemented a price increment earlier in April of the same year.
The Standard plan subscription, which is popular among Nigerian subscribers for its HD quality and multi-screen viewing options, was increased from N4,000 to N5,500. This represents a 37.5% increment.
