WeightWatchers 2010 Annual Report Download - page 47

The following table sets forth our revenues by category for the past five fiscal years.
Revenue
S
ource
s
(in millions)
Fi
sca
l 2010
F
i
sca
l 200
9
Fi
sca
l 2008 Fi
sca
l 200
7
F
i
sca
l 200
6
(
52 weeks
)(
52 weeks
)(
53 weeks
)(
52 weeks
)(
52 weeks
)
Meetings fee
s
.
...............................
$
8
19.6
$
817.5
$
908.1
$
880.7
$
723.
1
Pr
oduct sa
l
es
................................
3
0
5
.0 2
9
2.1 33
9
.8 337.7 2
9
3.3
Internet revenue
s
.............................
238.8 1
9
6.0 18
5
.8 1
5
1.6 12
9
.
4
Licensing, franchise royalties and other
...........
8
8.6
9
3.3 102.1
9
7.2 87.
5
T
ota
l
.......................................
$1
,
452.0 $1
,
398.9 $1
,
535.8 $1
,
467.2 $1
,
233.3
F
rom fiscal 200
6
through fiscal 2010, our revenues have increased at a compound annual growth rate o
f
4.2%. This increase is principally a result of
:
•
I
ncreased meeting fees
.
From fiscal 200
6
through fiscal 2010, meeting fees grew at a compound annua
l
g
rowth rate of 3.2% led by our NACO operations, and primarily as a result of growth in our average
m
eeting fee per attendee, on a global basis, from
$
11.83 in 2006 to
$
16.08 in 2010. Most of the
i
ncrease in average meeting fee per attendee occurred from fiscal 200
6
to fiscal 2008 coincident with
o
ur introduction of Monthly Pass, a commitment plan whereby the member authorizes us to charge his
o
r her credit card for meeting fees on a monthly basis, at a discounted rate, until the member elects to
c
ancel. The increase in the average meeting fee per attendee arises because not all members wh
o
p
urchase Monthly Pass attend all the meetings for which they have paid. The decline in meeting fee
s
f
rom 2008 to 2010 primarily reflects the impact of the global recession on our ability to enroll ne
w
m
embers. By the fourth quarter of 2010, meeting fees had once again begun to increase above the
c
omparable prior year period.
•
I
ncreased
p
roduct sale
s
.
Global product sales have grown at a compound annual growth rate of 1.0%
f
rom fiscal 200
6
through fiscal 2010, led by the United Kingdom which grew at a compound annual
g
rowth rate of 4.0%. We have increased average product sales per attendee in our meetings busines
s
f
rom
$
3.94 to
$
5.11, a compound annual growth rate of 6.7%, over the same period. Product sales pe
r
a
ttendee growth resulted from successful new product and program launches.
•
W
eightWatchers.co
m
. From fiscal 2006 through fiscal 2010, our Internet revenues have grown at
a
c
ompound annual growth rate of 16.
5
%. The increase is primarily due to growth in the number o
f
W
eightWatchers.com end-of-period active Online subscribers which more than doubled, from 460,00
0
a
t the end of fiscal 2006 to 1,0
5
4,000 at the end of fiscal 2010.
•
I
ncreased licensing revenues
.
L
icensing revenues grew at a compound annual growth rate of
5
.3%
f
rom fiscal 2006 through fiscal 2010, primarily as a result of our increased focus on expanding the
n
umber of Weight Watchers branded and endorsed products worldwide. The decline in this revenu
e
c
ategory from 2008 to 2010 is reflective of the global recession.
Me
tri
cs a
n
d
B
us
in
ess
Tr
e
n
ds
P
er
f
ormance In
d
icators an
d
Mar
k
et Tren
ds
O
ur management rev
i
ews an
d
ana
l
yzes severa
lk
ey per
f
ormance
i
n
di
cators
i
nor
d
er to manage our
b
us
i
ness
an
d
assess t
h
e qua
li
ty an
d
potent
i
a
l
var
i
a
bili
ty o
f
our cas
hfl
ows an
d
earn
i
ngs. T
h
ese
k
ey per
f
ormance
i
n
di
cators
i
nc
l
u
d
e
:
•
net revenues, w
hi
c
h
are an
i
n
di
cator o
f
our overa
ll b
us
i
ness
g
rowt
h
;
•
atten
d
ance an
d
pa
id
wee
k
s metr
i
cs;
•
meet
i
n
gf
ee revenue per atten
d
ee an
di
n-meet
i
n
g
pro
d
uct sa
l
es per atten
d
ee;
31