Entertainment news and discussion on TalkFuse.
Roku Sees Soaring Sales, Net Income of $183M, As It Blasts Past Analyst Expectations
Roku reported stronger-than-expected third-quarter results, with revenue and net income rising sharply. The growth highlights the streaming platform’s expanding advertising and subscription businesses as it awaits a proposed acquisition by Fox.
Revenue reached $1.5 billion, up 24 per cent year on year and above analysts’ $1.41 billion estimate; net income rose 639 per cent to $183 million, or $1.20 per diluted share, compared with an expected 55 cents. Platform revenue increased 34 per cent to $1.3 billion, while advertising and subscriptions each grew 23 per cent; streaming hours rose 9 per cent to 39.9 billion. Fox’s proposed $22 billion acquisition has shareholder and foreign regulatory approval, and Fox is working with the US Department of Justice; Roku withheld a financial outlook while the deal is pending.
In short
- Roku revenue rose 24 per cent to $1.5 billion.
- Net income climbed 639 per cent to $183 million.
- Fox’s proposed $22 billion acquisition is pending US approval.
Explained simply
Roku runs a platform for watching streaming services on televisions and sells its own streaming devices. It also earns money from adverts shown on its platform and from subscriptions, so its business depends on both viewers and companies seeking to reach them.
Fox is a US media company whose proposed $22 billion purchase of Roku is awaiting further regulatory review. The deal matters because it could bring Roku under new ownership, while the company’s advertising and subscription income remain important to its value and prospects.