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Netflix’s bonds ticked higher on Wednesday. The company had earlier reported its Q3 earnings with a net income of $2.5bn during the quarter vs. the street’s estimates of $3bn. Revenue was in-line with forecasts, at $11.5bn, and operating margins stood at 28%. The miss on earnings came about due to an unexpected expense from a Brazilian tax dispute. Without the Brazilian tax expense of ~$619mn, the margin would have exceeded the company’s guidance of 31.5%, it said. Netflix said that it recorded its best ad sales quarter in history. Some analysts said that it was a robust quarter sans the unexpected tax expense. Netflix also said that it was “all in” on generative AI as it presents a “significant opportunity” across its streaming platform, including improving recommendations, ads business, and movies and TV content.
Netflix’s 5.375% 2029s were trading higher at 105.5, yielding 3.9%.