Instant Reaction: Netflix Says Tax Dispute Hurt Solid Quarter

Instant Reaction: Netflix Says Tax Dispute Hurt Solid Quarter

Netflix said a tax dispute with Brazil cut into third-quarter earnings, marring results that otherwise fell in line with Wall Street estimates.


The world’s most valuable entertainment company posted quarterly operating income of $3.24 billion, according to a statement Tuesday, about $400 million below its own forecast and analysts’ estimates. The company’s outlook for the current quarter is largely in line with Wall Street projections.

Netflix had to pay about $619 million to settle a multiyear tax dispute with Brazilian authorities going back to 2022. The company had identified the potential risk in previous filings – but not in its earnings guidance — and said it would have beaten forecasts if not for the expense. Future payments will be smaller.“We don’t expect this matter to have a material impact on future results,” the company said.
For instant reaction and analysis, Bloomberg Businessweek hosts Carol Massar and Tim Stenovec speak with:

  • Bloomberg News Media and Entertainment Editor Felix Gillette
  • Mark Douglas, President & CEO of MNTN
  • Bloomberg Intelligence Senior Media Analyst Geetha Ranganathan

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