Online video rental group Netflix's revenues for the second quarter rose to USD 770 million from USD 520 million in the year-earlier quarter. Net profit grew 55 percent year-on-year to USD 68 million or USD 1.26 per share from a net profit of USD 44 million or USD 0.70 per share. Gross margin fell to 37.9 percent from 39.4 percent previously. Cash and cash equivalents amounted to USD 175.2 million at the end of Q2. Netflix ended Q2 with approximately 25 million subscribers, representing 70 percent growth from 15 million a year ago. Net subscriber additions in the quarter reached 1.80 million. Gross subscriber additions for the quarter totalled 5.31 million, representing 73.7 percent growth. Of the total subscribers, over 23.26 million were paid subscribers, while 1.3 million were free subscribers. Domestic churn rose to 4.2 percent from 4 percent. The company expects to end the third quarter with subscribers in the range of 24.6-25.4 million and revenue of USD 780-805 million. Netflix anticipates net income of USD 39-58 million and EPS of USD 0.72-1.07 per diluted share in Q3.
