Netflix’s UK profits rise by $28 million as tax bill doubles

Netflix saw its UK profits skyrocket last year, while its tax bill doubled.

The streaming company, which for the third year generated revenue from UK subscribers through its UK Netflix subsidiaries, saw operating profits rise 70%, or £22 million (US$28 million), to £53.7 million ( 70 million US dollars). It’s also good news for SVoD that Netflix’s ‘member base’, also known as subscribers, increased by 7%, double the increase in the previous year, while there was an increase in the ‘average number of paid subscriptions’ and an increase in the average Monthly revenue per paid subscription. Membership,” according to a key corporate filing.

The filing does not disclose subscriber figures, but ratings body Barb’s latest report for the second quarter said Netflix was in 17.1 million UK homes, an increase of about 400,000 on the first quarter.

The results come from a year in which Netflix released major hits in the UK, including the final seasons of its Netflix series The crown and Outstanding boyand Beckham documentary. Netflix’s UK revenue rose 8% to £1.7 billion, a smaller increase than 12% the previous year.

Notably, the players’ tax bill has doubled to £14.2m, a much larger increase than the previous year, when it increased only marginally.

This tax law may satisfy those who have been pressing Netflix for several years to start announcing its true revenues in the UK, amid reports of declining revenues. British MP Margaret Hodge accused the company of committing “highway robbery” at the time.

Netflix has continued to make progress in the UK this year, releasing several hit films including Fool me once, you little reindeer, gentlemen and Bridgerton. Fans were stunned yesterday when news broke that the Greek mythology retelling had been cancelled chaos. Late last month, the latest data dump revealed just how much Britons control the most-watched TV shows on the platform.

Netflix’s third-quarter results will be released soon in the US. The previous quarter saw the addition of 8 million subscribers, with revenue of $9.6 billion and earnings per share slightly above Wall Avenue analysts’ expectations.