revenues

Netflix on Tuesday said its third-quarter revenue jumped 17% to $11.5 billion, powered by the hit animated film “KPop Demon Hunters.”

The Los Gatos-based streamer reported a net income of $2.5 billion during the third quarter, up 8% from the same period a year ago but well below the $3 billion analysts had projected, according to FactSet.

Revenue was in line with analyst estimates and was boosted by increased subscriptions, pricing adjustments and more ad revenue.

The company said it incurred a $619-million expense related to a dispute with Brazilian tax authorities.

“Absent this expense, we would have exceeded our Q3’25 operating margin forecast,” Netflix said in a letter to shareholders on Tuesday. “We don’t expect this matter to have a material impact on future results.”

Netflix shares, which closed Tuesday at $1,241.35, fell 5% in after-hours trading.

As it continues to dominate the streaming market with more than 301 million subscribers, Netflix has been investing in a diverse slate of content, including new movies rolling out in the fourth quarter such as Guillermo del Toro’s “Frankenstein,” as well as the final season of sci-fi hit “Stranger Things” and family-friendly games for the TV such as Boggle.

“KPop Demon Hunters” has garnered more than 325 million views in its first 91 days on the service. The movie, about a trio of powerful singers who hunt demons, was released in June.

It bested 2021 action film “Red Notice,” which had been previously its most watched film in its first 91 days on Netflix with 230.9 million views.

On Tuesday, Netflix also announced a licensing deal with toymakers Hasbro Inc. and Mattel Inc. to make toys including dolls, action figures, youth electronics and other items related to “KPop Demon Hunters.”

Popular TV shows launched in the third quarter include the second season of the Addams family spinoff series “Wednesday” and the second season of drama “My Life With the Walter Boys.”

“When you have a hit the size of ‘KPop Demon Hunters,’ it stirs the imagination of where you can take this,” said Ted Sarandos, co-chief executive of Netflix, in an earnings presentation.

He said the film benefited from Netflix’s platform, allowing superfans to repeat view it and make it appealing for audiences to watch in theaters as well. “We believe this film, ‘KPop Demon Hunters,’ actually worked because it was released on Netflix first,” Sarandos added.

The company said in the fourth quarter it expects revenue to grow another 17% due to growth in subscriptions, pricing and ad revenue.

For the full year, Netflix is forecasting revenue of $45.1 billion, up 16%, and said it is on track to more than double it ad revenue in 2025.

Like other entertainment companies, Netflix has been taking steps to diversify its business in a challenging landscape, as production costs for TV and movies increases and studios consolidate.

“With entertainment industry employment becoming more precarious, Netflix is slyly pivoting its content strategy to rely more on live sports, YouTubers, creators and podcasters,” said Ross Benes, a senior analyst with research firm Emarketer in a statement.

But some investors still remain skeptical about the future of subscription streaming services, as the technology behind video generation tools powered by AI get more sophisticated, making it easier to replicate visual effects and customize content to viewers.

“Netflix’s core lay-back easy-to-watch scripted content is potentially most at risk by the emergence of generative AI compared to peers,” said John Conca, analyst with investment research firm Third Bridge. “Netflix will need to channel its earlier days and find a way to remain nimble, even though it’s now the 800-pound gorilla in this space to deal with this threat.”

On Tuesday, Netflix said it is using generative AI to improve the quality of its recommendations and content discovery on its platform. Creators on Netflix are also using AI tools for their projects, including filmmakers for comedy “Happy Gilmore 2” using generative AI and volumetric capture technology to de-age characters.

Despite Western sanctions, Russia’s military spending has fuelled its war economy. Three years into the war in Ukraine, growth is stalling, energy revenues are plunging, and the budget deficit is widening.

To shore up state coffers, Russia is raising the value-added tax from 20 percent to 22 percent, among other measures. The Ministry of Finance says funds will mainly cover defence and security spending.

The plan came a day after United States President Donald Trump said Russia was in “big economic trouble”, but is it?

Can the United Kingdom’s Labour Party deliver on its economic promises?

Plus, will the Africa-US trade pact, AGOA, be renewed?

Matchday revenue increased, despite a 10% drop in attendances from the previous year.

The average league attendance dropped to 6,642.

The drop, which followed England reaching the 2023 Women’s World Cup final, contributed to pre-tax losses of £28m – up from £21m in 2022-23.

However, Deloitte is forecasting revenues to top £100m across the league at the end of the 2025-26 campaign, helped by the upcoming Euros in Switzerland,

“Women’s football in England is evolving rapidly,” said Tim Bridge, lead partner in the Deloitte Sports Business Group.

“While challenges remain, it is clear there is potential for a passionate and engaged fanbase to drive the game’s development.

“Capitalising on major international tournaments is important at specific points in time, but sustainable growth hinges on the domestic league’s organic development.”

Bridge added that a “competitive balance is a key priority” if the WSL is to sustain long-term growth, with the gap widening between the top-earning clubs and the lowest-earning clubs in the league.

SACRAMENTO — Gov. Gavin Newsom’s Office said Tuesday that President Trump’s tariff policies will reduce state revenues in California by $16 billion through next year.

Despite personal income tax and corporate tax receipts in the state coming in $6.8 billion above projections through April, the Newsom administration is predicting that overall revenues will be lower than they could have been from January 2025 through June 2026 because of the economic impact of Trump’s tariffs.

The governor released the new information, which his team dubbed the “Trump Slump,” on the eve of the presentation of his revised 2025-26 state budget plan, seeking to blame the president for California’s expected revenue shortfall. His office has not released any additional figures about the state budget.

Newsom is expected on Wednesday to project a deficit for California in the year ahead with Medi-Cal costs exceeding expectations, including his signature policy to provide free healthcare coverage to low-income undocumented immigrants. The new shortfall comes in addition to $27.3 billion in financial remedies, including $16.1 billion in cuts and a $7.1 billion withdrawal from the state’s rainy day fund, that lawmakers and the governor already agreed to make in 2025-26.

The deficit marks the third year in a row that Newsom and lawmakers have been forced to reduce spending after dedicating more money to programs than the state has available to spend. Poor projections, the ballooning cost of Democratic policy promises and a reluctance to make long-term sweeping cuts have added to the deficit at a time when the governor regularly touts California’s place as the fourth largest economy in the world.

Trump implemented a series of tariffs on all imported goods, higher taxes on products from goods from Mexico, Canada and China, and specific levies on products and materials such as autos and aluminum, in April. The president has backed down from some of his tariffs, but Newsom alleges that the policies and economic uncertainty will lead to higher unemployment, inflation, lower GDP projections and less capital gains revenue for California.

California filed a lawsuit last month arguing that Trump lacks the authority to impose tariffs on his own. On Tuesday, the state said it will seek a preliminary injunction to freeze the tariffs in federal court.