Netflix profit dips on Brazil tax hit
Netflix stock tumbled more than 6 percent on Tuesday after the streaming company posted earnings below analyst forecasts. The platform earned 2.5 billion dollars on revenue of 11.5 billion dollars but absorbed a 619 million dollar charge from a tax dispute with Brazilian authorities. Chief financial officer Spencer Neumann said the expense stems from doing business in Brazil, not income taxes, and is likely affecting other firms operating there. A recent court decision increased the likelihood that Netflix will face this cost.
British and American viewership climbed to three-year highs, powered by K-pop Demon Hunters, the service’s most popular film. Netflix expects strong performance this quarter from the final season of Stranger Things and from expanded live programming, such as football and boxing. The advertising-supported tier achieved record sales as the company challenges conventional television. Speculation emerged about potential interest in acquiring Warner Bros. Discovery, though executives stressed they would grow organically and evaluate opportunities carefully.
