Netflix Inc. has begun to reshape the TV business overseas just as it has at home.
The streaming-video provider scored a record second quarter, according to a statement Monday, surpassing forecasts for subscriber growth and increasing its international audience past the domestic total for the first time.
Netflix's blend of TV shows, movies and stand-up comedy TV has started to catch on in some of the biggest countries in the world, from Brazil to the U.K. The company will reach at least 20 percent of broadband households in five of its largest markets outside the U.S. by the end of the year, according to Instinet.
The world's largest paid online video service added 5.2 million subscribers in the second quarter, far surpassing the 3.2 million forecast by analysts. The company said 4.14 million of those new viewers came from outside the U.S., bringing the international total to more than 52 million.
Netflix is spending more than $6 billion on programming in 2017. While most of that reflects shows licensed from big Hollywood studios, the company is now releasing an array of new shows and movies of its own, including new series set in Spain and Mexico during the quarter.
Shares of Netflix rose as much as 9 percent in extended trading Monday, showing investors continue to be focused on subscribers, which rose to almost 104 million in the period. The stock is up 31 percent this year.
For the second quarter, Los Gatos, Calif.-based Netflix signed up 1.07 million U.S. customers, easily beating the 633,000 average of analysts' estimates compiled by Bloomberg.
All that growth comes at a cost. Net income of $66 million, or 15 cents a share, fell short of the 16-cent average of analysts forecasts, even while up from a year earlier. The company raised another $1 billion in the quarter to fund original programming.
The momentum looks set to continue this quarter. The company projects it will add 4.4 million new subscribers, compared with the 3.96 million average of analysts' estimates. Netflix forecasts net income of 32 cents a share, on revenue of $2.97 billion. That compared with analysts' estimates of 23 cents and revenue of $2.88 billion.
Business on 07/18/2017