InternetNetflix 2Q profit up 4 pct, beats analyst views (AP)

AP - Netflix Inc.'s second-quarter profit crept up 4 percent, beating analyst expectations as the online DVD rental leader signed up 168,000 new customers while spending less money to attract them to the service.

SAN FRANCISCO - Netflix Inc.'s second-quarter profit crept up 4 percent, beating analyst expectations as the online DVD rental leader signed up 168,000 new customers while spending less money to attract them to the service. The Los Gatos, Calif.-based company said Friday that it earned $26.6 million, or 42 cents per share, from April through June, up from $25.6 million, or 37 cents per share, in the same period a year ago. The average earnings estimate among analysts surveyed by Thomson Financial was 40 cents per share. Revenue climbed 11 percent to $337.6 million to match analyst estimates. Netflix shares gained $1.12, 4.2 percent, to close at $27.85 Friday. The company ended June with 8.4 million subscribers, and probably would have had even more if it had advertised its service as vigorously as it usually does. But management has decided to sacrifice some of its growth opportunities to ensure it keeps Wall Street happy with higher profits, Netflix Chief Executive Reed Hastings said during a Friday conference call. As a result, Netflix trimmed its marketing expenses by $5 million, or 11 percent, from the same time last year. Despite the cutback and a slowing economy, Netflix had far more success luring new subscribers than last year when it lost 55,000 customers during the spring — the only quarter that the company's service has shrunk during its nine-year history. "We appear to be substantially unaffected... [ Read more on www.yahoo.com ]

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