Has Netflix subscriber growth peaked?
Netflix saw nearly a quarter of its value wiped out after losing subscribers for the first time in a decade: The streaming service lost 200k subscribers in 1Q and expects to lose another 2 mn this quarter, it said in its shareholders letter (pdf), disappointing investor expectations of continued growth. Income was nearly 12% down for the quarter at USD 1.5 bn. The company blamed saturation in its major markets and acknowledged its rising competition (think the likes of Disney+). Shares in the streaming giant were down nearly 25% in after-hours trading, CNN reports.
SPEAKING OF DISNEY+, the streamer is due to land in Egypt and 15 other regional markets on 8 June. Look for a subscription to cost you EGP 498.99 for the year or EGP 49.99 per month, as we previously noted.
ALSO IN PLANET FINANCE–
- EFG Hermes, HSBC, Citigroup, Emirates NBD and other firms will share up to AED 357 mn (USD 97 mn) in fees for their work on Dubai main utilities firm DEWA’s blockbuster IPO. (Bloomberg)
- China’s central bank has unveiled a raft of measures to support the economy amid damaging covid disruptions. The measures include promises to provide more financial support, boost lending, and expand the cross-border use of Chinese currency. (Bloomberg)
|EGX30||10,627||-0.9% (YTD: -11.1%)|
|USD (CBE)||Buy 18.41||Sell 18.50|
|USD at CIB||Buy 18.43||Sell 18.50|
|Interest rates CBE||9.25% deposit||10.25% lending|
|Tadawul||13,506||-1.7% (YTD: +19.7%)|
|ADX||9,904||-0.4% (YTD: +16.7%)|
|DFM||3,646||+1.6% (YTD: +14.1%)|
|S&P 500||4,462||+1.6% (YTD: -6.4%)|
|FTSE 100||7,601||-0.2% (YTD: +2.9%)|
|Euro Stoxx 50||3,831||-0.5% (YTD: -10.9%)|
|Brent crude||USD 107.25||-5.2%|
|Natural gas (Nymex)||USD 7.21||+0.4%|
|BTC||USD 41,317.69||+1.3% (as of midnight)|
THE CLOSING BELL-
The EGX30 fell 0.9% at yesterday’s close on turnover of EGP 729 mn (21.3% below the 90-day average). Local investors were net buyers. The index is down 11.1% YTD.
In the green: MM Group (+9.1%), Madinet Nasr Holding (+5.6%) and Ezz Steel (+5.1%).
In the red: Oriental Weavers (-12.7%), Credit Agricole Egypt (-8.9%) and Egypt Kuwait Holding-EGP (-7.8%).
Asian markets are mixed this morning, with shares in Shanghai, Hong Kong and Seoul under selling pressure. The Nikkei and ASX are both bucking the trend. Europe looks set to open in the green later this morning (only the CAC 40 will open in the red, futures suggest) while Wall Street will face selling pressure at the opening bell as “investors digested disappointing Netflix earnings and looked ahead to a new batch of companies set to report Wednesday,” CNBC notes.