ISTANBUL

Shares of Netflix dropped more than 9% Wednesday after third-quarter profits were below expectations because of a dispute with Brazilian tax authorities.

The stock price of the US-based streaming service traded around $1,121.37 as of 1610GMT.

The decline followed the company's financial results announcement late Tuesday. The third-quarter net income rose to $2.55 billion, or $5.87 per share, up from $2.36 billion, or $5.40, in the same quarter a year ago, but below market expectations.

The company attributed the earnings miss to an unexpected $619 million charge related to the Brazilian tax dispute.

Netflix's revenues rose 17% year-on-year to $11.51 billion.

The firm said it anticipates $45.1 billion in revenue for the entire year, a 16% increase over the previous year and consistent with projections of 15%-16% revenue growth.

Citing the Brazilian tax issue, Netflix changed its operating margin expectation for the year; it now anticipates that figure to be 29% rather than the previous estimate of 30%.