American streaming service Netflix said that its net profit increased 1.8 times in annual terms in 2021 and reached $5.116 billion.
Diluted net income per share amounted to $11.24 versus $6.08 the year before, according to the company’s financial records. Revenue for the reporting period amounted to $29.7 billion, with a 18% increase year-on-year.
Last year, the company benefited from the success of the South Korean drama “Squid Game,” which debuted on September 17 and quickly gained worldwide popularity. In the series, heroes, experiencing financial difficulties, are participating in survival games and fighting for a big cash prize.
In the fourth quarter of 2021, the company’s net was reduced two-fold to $607 million. Diluted net income per share amounted to $1.33 versus $3.19 the year before. The company’s revenue for the reporting period amounted to $7.7 billion, with a 3% increase in annual terms.
However, the total number of paying Netflix newcomers was only 8.3 million in the fourth quarter, which is less than the company’s forecast of 8.5 million. Against this backdrop, the company’s shares fell by 20% in pre-bids. Moreover, the 2021 free cash flow plummeted to minus $569 million after a $284 million decline the year before.
Netflix, founded in 1997, is headquartered in Los Gatos, California. The paid video service is operating in more than 190 countries around the world. In addition to streaming, Netflix has since 2013 been producing its own films, series and TV shows.