Netflix profit dips on Brazil tax hit, shares slide
Netflix stock fell more than 6 percent on Tuesday after the streaming company reported lower profits than analysts expected. The platform earned $2.5 billion on $11.5 billion in revenue but faced a $619 million charge from Brazilian tax authorities. Executives said the expense affected margins despite strong viewer growth in Britain and the United States, driven by K-pop Demon Hunters.
The advertising tier delivered record sales as Netflix challenges traditional television networks. Ad revenue doubled this year, though subscription fees remain the primary income source. More than 300 million paid members worldwide watch content across 190 countries.
