Weight Watchers' Q3 Internet revenues rose 24.2% year-over-year to US$124.2M, versus 2.7% growth in overall revenues, as number of online subscribers rose nearly 20%

NEW YORK , November 7, 2012 (press release) – Weight Watchers International, Inc. (NYSE: WTW) today announced its results for the third quarter of fiscal 2012 and narrowed its fiscal 2012 earnings guidance.

Third quarter 2012 highlights include:

  • Revenues of $430.6 million, up 2.7% on a constant currency basis versus the prior year period, with total paid weeks up 8.8% versus the prior year period
  • Internet revenues of $124.2 million, up 24.2% on a constant currency basis versus the prior year period, with Online paid weeks up 23.2% and end of period active Online subscribers up 19.5% versus the prior year period
  • Q3 2012 EPS of $1.20, up 10.5% versus the prior year period EPS of $1.09
"Overall, fiscal 2012 is expected to end very much in line with our prior earnings guidance. Our Q3 2012 financial results were somewhat better than our expectations with continued strength of our WeightWatchers.com business being offset in part by pressure on our North American and UK meetings businesses," commented David Kirchhoff, President and Chief Executive Officer of the Company. "Our recent decision to accelerate a few investment areas in preparation for 2013, as well as Hurricane Sandy, will impact our Q4 2012 results. Therefore, we are narrowing our fiscal 2012 earnings guidance to a range of between $4.00 and $4.10 per fully diluted share, reflecting approximately $0.05 per fully diluted share of investment costs pulled forward into the fourth quarter from Q1 2013 as well as an estimated $0.02 to $0.03 per fully diluted share of negative impact from Hurricane Sandy."

Kirchhoff added, "With a new global program innovation and new advertising campaigns, as well as a revamped B2B capability in North America, we will enter 2013 with a strong game plan."

Weight Watchers International Third Quarter Results

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