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

Netflix said a tax dispute with Brazil cut into third-quarter earnings, marring results that otherwise fell in line with Wall Street estimates.
&nbsp; The world&rsquo;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&rsquo; estimates. The company&rsquo;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 &ndash; but not in its earnings guidance &mdash; and said it would have beaten forecasts if not for the expense. Future payments will be smaller.&ldquo;We don&rsquo;t expect this matter to have a material impact on future results,&rdquo; the company said. For instant reaction and analysis, Bloomberg Businessweek hosts Carol Massar and Tim Stenovec speak with:
<ul>
<li>Bloomberg News Media and Entertainment Editor Felix Gillette</li>
<li>Mark Douglas, President &amp; CEO of MNTN</li>
<li>Bloomberg Intelligence Senior Media Analyst Geetha Ranganathan</li>
</ul>

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Instant Reaction: Netflix Says Tax Dispute Hurt Solid Quarter

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