Netflix reported a revenue growth of 24% YoY to $7.1bn and net income of $1.7bn, up ~2.4x YoY, beating analyst estimates. While operating profits and margins reached all-time highs of $1.96bn and 27.4%, paid memberships came in at 208mn, up 14% YoY but below their guidance of 210mn. Q1 new paid subscriber additions were at 3.98 mn vs. 6.29mn expected. Netflix said that growth got pulled forward in 2020 due to Covid and a light content slate in the first half of 2021 due to Covid-related production delays. The company said that the second half of this year is more heavily slated with a large number of returning franchises. Netflix’s reduced total gross debt balance stands at $15.7bn with the company intending to maintain $10-15bn of gross debt. The Board also approved a share repurchase up to $5bn beginning in 2021 with no fixed expiration date.

Netflix’s bonds were trading lower – its 4.375% 2026s was down 1.6 to 111.76, yielding 2.12% and its 5.375% 2029s were down 0.7 to 118.56, yielding 2.9%.

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