Netflix’s stock dropped by a quarter on Tuesday after the firm announced that its subscriber base declined in the first quarter of this year.
The largest streaming television service had lost customers for the first time in a decade. The corporation attributed the decline to the suspension of its service in Russia as a result of Moscow’s invasion of Ukraine.
Netflix has 221.6 million customers at the end of the first quarter of this year, down marginally from the same period last year.
In the most recent quarter, the Silicon Valley tech firm posted a net income of $1.6 billion, down from $1.7 billion a year earlier. Following the revelation of the earnings numbers, Netflix shares fell 25% to $262 in after-market dealings.
“We’re not growing revenue as fast as we’d like,” Netflix said in an earnings letter.
“Covid clouded the picture by significantly increasing our growth in 2020, leading us to believe that most of our slowing growth in 2021 was due to the Covid pull forward.”