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Netflix shareholders okay a possible stock split

Last updated: 02:20 11 Jun 2015 AEST, First published: 00:20 11 Jun 2015 AEST

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Netflix has been focusing on international expansion as growth slows in the United States, where it has reshaped TV viewing habits since it was first launched in 2007.

Netflix (NASDAQ:NFLX) extended this year’s rally after the provider of Internet television network approved a massive increase in the number of shares the company is authorized to issue, the first step toward a possible stock split.

Shares of the Los Gatos, California-based company were up 4.1 percent at $673 at 10:12 a.m. in New York. The stock, the top-performing stock in the Standard & Poor’s 500 index, has almost doubled this year.

Chief Executive Reed Hastings said at the company's annual meeting that management will seek approval from the board of directors "in due course" to pursue a stock split, Netflix spokeswoman Anne Marie Squeo said.

The video-streaming service won approval to raise its share authorization by nearly 30 times to 5 billion from 170 million.

Netflix has been focusing on international expansion as growth slows in the United States, where it has reshaped TV viewing habits since it was first launched in 2007.

Investors applauded Netflix's planned to launch in Italy, Portugal, and Spain in October, as it executes its plan to be in 200 countries by the end of 2016.

Shareholders also approved non-binding proposals to elect board members annually, to require a simple majority vote for all measures, and to increase the ability of investors to nominate directors.

Also at the same meeting, investors chose three new board members: Richard Barton, executive chairperson of Zillow Group Inc., Brad Smith, Microsoft’s general counsel, and Anne Sweeney, former president of the Disney/ABC Television Group.

For the first quarter, Netflix reported earnings per share of $0.38 on net income of $23.7 million and $1.57 billion in revenue.

Subscriptions were up, with the streaming giant adding 4.9 million subscribers in the most-recent 90-day period — a record for the company.

The U.S. was responsible for 2.3 million of those new members thanks to hits like “House of Cards” and “Orange Is the New Black.” The total subscriber number rose to 62.27 million; 59.62 million are paid subscribers.


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