For now, Netflix investors can have rapid subscriber growth or a big jump in profit — not both.

The streaming-video giant reported first-quarter user gains that fell short of estimates because there wasn’t a “House of Cards”-style hit to draw new viewers and retain others. On the other hand, the lack of big-budget productions boosted net income. Next quarter, with the return of “House of Cards” and three major movies on the release schedule, profit will miss estimates while customer gains will improve, Netflix said Monday.

The dilemma hurt Netflix investors late on Monday, with the stock dropping on the subscriber figures before recovering later and moving higher. The shares rose 1.4 per cent to $149.30 (£118.16) in extended trading after results were announced. They had gained 15 per cent this year to 13 April.

The world’s biggest paid video service signed 4.95 million new customers last quarter, less than the 5.49 million analysts were expecting. It’ll make up some of that in the current period, with a forecast for viewer growth that beat analysts’ forecasts.

“There’s nothing here that changes the thesis,” said Anthony DiClemente, an Instinet analyst who recommends buying the shares. “If you own Netflix because you think they are going to add subscribers globally, you’re still going to own it. If you don’t own it because you think Netflix was spending too much money to invest in said growth, you still feel the same way.”

Netflix needs to add millions of subscribers every quarter to help pay for the billions of dollars the company spends making TV shows and movies or licensing programs from others. The company, which has committed $15.3bn for movies and TV shows over the next five years, hasn’t given any indication it plans to slow those outlays and said Monday it plans to raise money this quarter by issuing long-term debt.

Netflix released 17 stand-up specials, nine feature films and an array of original series for kids and adults, but blamed the absence of one show — “House of Cards” — for its slower-than-projected viewer growth.

The company could turn the tide in the second quarter, typically one of its weakest. Netflix, based in Los Gatos, California, has lined up a slew of high-profile releases in the coming months, including new seasons of “House of Cards,” “Orange Is the New Black” and “Master of None.”

The heavy second-quarter schedule comes with costs and highlights a dilemma. Because of those expenses, Netflix said profit in the period will be 15 cents a share, short of analysts’ estimate of 23 cents. Revenue will be $2.75bn, versus Wall Street projections of $2.76bn. The first quarter, lighter on new releases, was the company’s most profitable ever and the first time international operations made money.

Future Profit

Investors have permitted Netflix to operate near break-even on the expectation that the company, which expects to top 100 million customers this week, will continue to grow rapidly, especially outside the U.S. Chief Executive Officer Reed Hastings has also pledged to deliver material profits starting this year. Analysts are forecasting net income of $477.2m, or $1.09 a share, on revenue of $11.2bn, based on the average of estimates compiled by Bloomberg.

The company said first-quarter profit more than quadrupled to $178m, or 40 cents a share, compared with analysts’ predictions of 37 cents. Revenue grew 35 per cent to $2.64bn.

The company wants to be assessed in the future based on sales and margins, as opposed to subscriber growth.

Business news: In pictures Show all 13 1 /13 Business news: In pictures Business news: In pictures Flybe collapses Airline Flybe has collapsed. All future flights on the Exeter-based airline have been cancelled – leaving more than 2,300 staff facing an uncertain future, and wrecking the travel plans of hundreds of thousands of passengers. The chief executive, Mark Anderson, said: “Europe’s largest independent regional airline has been unable to overcome significant funding challenges to its business. AFP via Getty Business news: In pictures Future product placement will be 'tailored to individual viewers' Marketing executives say that product placement in films and televison shows on streaming services such as Netflix may be tailored to individuals in future. For instance, if data shows that a viewer is a fan of pepsi, a billboard in the background of a shot would host an advert for pepsi, while for a viewer known to have different tastes it could be for Coca-Cola Paramount Business news: In pictures Corbyn wishes Amazon a happy birthday In a card sent to Amazon CEO Jeff Bezos on the company's 25th birthday, Labour leader Jeremy Corbyn writes: "You owe the British people millions in taxes that pay for the public services that we all rely on. Please pay your fair share" Business news: In pictures No deal, no tariffs The government has announced that it would slash almost all tariffs in the event of a no-deal Brexit. Notable exceptions include cars and meat, which will see tariffs in place to protect British farmers Getty Business news: In pictures Fingerprint payment NatWest is trialling a new bank card that will allow people to touch their hand to the card when paying rather than typing in a PIN number. The card will work by recognising the user's fingerprint NatWest/PA Wire Business news: In pictures Mahabis bust High-end slipper retailer Mahabis has gone into administration. 2 Jan 2019 Mahabis Business news: In pictures Costa Cola Coca-Cola has paid £3.9bn for Costa Coffee. A cafe chain is a new venture for the global soft drinks giant PA Business news: In pictures RIP Payday Loans A funeral procession for payday loans was held in London on September 2. The future of pay day lenders is in doubt after Wonga, Britain's biggest, went into administration on August 30 PA Business news: In pictures Musk irks investors and directors Elon Musk has concluded that Tesla will remain public. Investors and company directors were angry at Musk for tweeting unexpectedly that he was considering taking Tesla private and share prices had taken a tumble in the following weeks Getty Business news: In pictures Jaguar warning Iconic British car maker Jaguar Land Rover warned on July 5, 2018 that a "bad" Brexit deal could jeopardise planned investment of more than $100 billion, upping corporate pressure as the government heads into crucial talks AFP/Getty Business news: In pictures Spotif-IPO Spotify traded publically for the first time on the New York Stock Exchange on Tuesday. However, the company isn't issuing shares, but rather, shares held by Spotify's private investors will be sold AFP/Getty Business news: In pictures French blue passports The deadline to award a contract to make blue British passports after Brexit has been extended by two weeks following a request by bidder De La Rue. The move comes after anger at the announcement British passports would be produced by Franco-Dutch firm Gemalto when De La Rue’s contract ends in July. The British firm said Gemalto was chosen only because it undercut the competition, but the UK company also admitted that it was not the cheapest choice in the tendering process. Business news: In pictures Beast from the east economic impact The Beast from the East wiped £4m off of Flybe’s revenues due to flight cancellations, airport closures and delays, according to the budget airline’s estimates. Flybe said it cancelled 994 flights in the three months to 31 March, compared to 372 in the same period last year.

Netflix’s investment in original programming has inspired competing technology companies and TV networks up their spending, creating more competition for attention and eyeballs. Netflix said it will spend $1bn marketing in 2017 to bring more attention to its shows.

Analysts were expecting slower growth this quarter, after Netflix expanded to more than 130 new countries in the year-earlier period. The company has expanded in stages, and is having more success with older markets.

“We have high satisfaction and are rapidly growing in Latin America, Europe, and North America,” the company said in a letter to investors. “We are making good strides in improving our content offering to match local tastes in Asia, Middle East, and Africa, but have much progress to make, like in Latin America a few years ago.”