Weight Watchers International, Inc. (NYSE:WTW) revenue in 4Q2016 surged 3% YoY to $267 million. End of period subscribers jumped 10% YoY to 2.6 million. Total paid weeks in 4Q2016 grew 10% year-over-year.
Nick Hotchkin, the CFO of Weight Watchers, said that they recorded positive member recruitment increase in every quarter of FY2016, closing the year with subscribers’ growth of 10% over the prior year. So far in 2017, their international marketing campaigns are resulting in strong member recruitment and attention in Beyond the Scale plan. With 2017 off to a good start, they are confident to deliver strong revenue growth and increased profitability this year.
Weight Watchers is offering its full year FY2017 earnings projection of between $1.30 and $1.40 per share. This projection comprises a projected tax benefit of almost $0.15 per share anticipated in 1Q2017 linked to the cessation of operations of the firm’s Spanish subsidiary. FY2016 EPS of $1.03 comprised a tax benefit of $0.18 per share, mainly linked to previous-year technology investments.
End of Period Subscribers in 4Q2016 grew 9.7% compared to the prior year period, mainly led by continued recruitment development in North America where this growth came at 12.3%. Total Paid Weeks in 4Q2016 grew 10.1% over the previous year period. Meeting Paid Weeks in 4Q2016 increased 9.6% whereas Online Paid Weeks jumped 10.5%. These profits were supported by Total Paid Weeks growth of 13.2% in North America.
Revenues in 4Q2016 came at $267.4 million. Measured on a constant currency, 4Q2016 revenues surged 5% over the prior year period. Weight Watchers reported that service Revenues in 4Q2016 came at $221.2 million. Measured on a constant currency, these revenues surged 5.7% over the prior year period.
This jump was led by revenue growth of over 8% in North America, which was partially counterbalanced by revenue drop in international markets.