Netflix added 9.3 mn subscribers in 1Q 2024, with net income surpassing analyst expectations to reach USD 2.3 bn, following its controversial crackdown on password sharing and the introduction of ad-supported plans.

The streaming platform said it would stop reporting subscription figures every quarter as of 2025, unless there’s a significant milestone, in a move that analysts say could rattle investors who use the metric as a way of modeling the company’s business, Reuters reports.

Analysts also say it’s unclear how the streaming platform will reel in more users after its password-sharing crackdown is fully implemented.

Netflix’s rationale? The company wants the focus to be on what it sees are the “key metrics” that matter most to the business, including improving the quality and variety of content on its platform and scaling its ads business.

Market reax: Netflix’s shares fell 4.2% in trading.

THE MARKETS THIS MORNING-

Most Asian markets are down in early trading this morning, with Japan’s Nikkei 225 falling more than 3% and Topix falling 2.25%. This comes after data that Japan’s inflation cooled in February to 2.7% was published yesterday. South Korea’s Kospi is also 2.32% lower, while Kosdaq fell 2.18%, and Hong Kong’s Hang Seng index was down 1.08%.

Wall Street also saw the S&P 500 decline as it posts its fifth straight day of losses — its longest streak of losses since last October. Dow Jones was the only US index in the green, up 0.06%.

ADX

9,182

+0.2% (YTD: -4.1%)

DFM

4,208

+0.8% (YTD: +3.7%)

Nasdaq Dubai UAE20

3,672

+0.4% (YTD: -4.4%)

USD : AED CBUAE

Buy 3.67

Sell 3.67

EIBOR

4.9% o/n

5.4% 1 yr

TASI

12,502

+0.3% (YTD: 4.5%)

EGX30

28,332

-4.5% (YTD: +13.8%)

S&P 500

5,011

0.2% (YTD: -5.1%)

FTSE 100

7,877

+0.4% (YTD: +1.9%)

Euro Stoxx 50

4,936

+0.5% (YTD: +9.2%)

Brent crude

USD 88.18

+1.3%

Natural gas (Nymex)

USD 1.75

-0.2%

Gold

USD 2,401.40

+0.1%

BTC

USD 62,030.12

+0.9% (YTD: 86.0%)

THE CLOSING BELL-

The ADX rose 0.2% yesterday on turnover of AED 992.9 mn. The index is down 4.1% YTD.

In the green: National Company for Tourism and Hotels (+6.7%), Palms Sports (+6.5%) and Eshraq Investments (+4.2%).

In the red: Ooredoo (-9.3%), Foodco National Foodstuff (-8.8%) and Easy Lease Motorcycle Rental (-5.2%).

Over on the DFM, the index closed up 0.8% on turnover of AED 414.2 mn. Meanwhile Nasdaq Dubai closed up 0.4%.

CORPORATE ACTIONS-

Adnoc plans to settle its USD-denominated exchangeable bonds — with a coupon rate of 0.70% — in Adnoc Distribution through a payment upon their maturity on 4 June 2024, according to a statement. Adnoc will pay around USD 1.19 bn, as well as up to USD 4.18 mn in interest. The option to convert bonds into shares expires on 4 May. The payment will mean that Adnoc will retain around 77% of Adnoc Distribution's shares.

United Foods Company approved the distribution of AED 18.1 mn in dividends to shareholders for 2023, representing 60% of the shares' capital, according to a DFM disclosure (pdf).

Dubai Investments approved the distribution of a 12.5% cash dividend to the shareholders for 2023, according to a DFM disclosure (pdf). The company reported income attributable to the shareholders of AED 1.13 bn for the year.

Deyaar Development approved a proposal of cash dividends of 4% of the share capital, equivalent to 4 fils per share for 2023, according to a DFM disclosure.

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