WeightWatchers 2012 Annual Report Download - page 62

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Meeting fees in Continental Europe were $136.0 million in both fiscal 2012 and fiscal 2011. Excluding the
impact of foreign currency, which decreased Continental European meeting fees in fiscal 2012 by $10.4 million,
Continental European meeting fees increased by 7.6% in fiscal 2012 as compared to the prior year. The increase
in meeting fees on a constant currency basis was driven by an increase of 9.2% in Continental European meeting
paid weeks in fiscal 2012 versus the prior year. The increase in meeting paid weeks was driven by higher
enrollments in fiscal 2012 as compared to the prior year. These higher enrollments were the result of effective
new marketing strategies in this region. In Continental Europe, attendance increased by 3.3% in fiscal 2012
versus the prior year.
In-Meeting Product Sales
Global in-meeting product sales for fiscal 2012 were $253.2 million, a decrease of $28.6 million, or 10.1%,
from $281.8 million in fiscal 2011. Excluding the impact of foreign currency, which decreased in-meeting
product sales for fiscal 2012 by $4.4 million, global in-meeting product sales in fiscal 2012 declined 8.6% versus
the prior year. This decrease resulted primarily from an 11.0% decline in global meeting attendance in fiscal
2012 versus the prior year. Slightly offsetting this decline was an increase in product sales per attendee in fiscal
2012 versus the prior year. On a per attendee basis, in fiscal 2012 global in-meeting product sales increased
1.0%, or 2.8% on a constant currency basis, versus the prior year. This increase in in-meeting product sales per
attendee in fiscal 2012 was driven by very strong per attendee sales of consumables and new products, including
ActiveLink, in NACO and consumables in the United Kingdom in the fourth quarter of fiscal 2012, which more
than offset a weak 2012 first nine months. This weakness was primarily the result of cycling against abnormally
strong first quarter fiscal 2011 sales of enrollment products in connection with the launch of the new programs in
our English-speaking markets in late fiscal 2010.
In NACO, fiscal 2012 in-meeting product sales of $145.9 million decreased by $12.0 million, or 7.6%,
versus the prior year. This decrease resulted primarily from an 11.4% attendance decline in fiscal 2012 as
compared to the prior year. In-meeting product sales per attendee increased by 4.2% in fiscal 2012 versus the
prior year as strong fourth quarter fiscal 2012 sales of consumables and new products, including ActiveLink,
offset the decline in sales of enrollment products earlier in the year.
International in-meeting product sales were $107.3 million in fiscal 2012, a decrease of 13.4%, or 9.9% on a
constant currency basis, versus the prior year. This decrease was driven primarily by an attendance decline of
10.5% in fiscal 2012 as compared to fiscal 2011, which was largely driven by the United Kingdom. In-meeting
product sales per attendee in fiscal 2012 declined by 3.2%, but increased by 0.6% on a constant currency basis, as
compared to the prior year.
Internet Revenues
Internet revenues, which include subscription revenues from sales of our Weight Watchers Online and
Weight Watchers eTools products as well as Internet advertising revenues, increased $104.8 million, or 26.2%, to
$504.3 million in fiscal 2012 from $399.5 million in fiscal 2011. Excluding the impact of foreign currency,
which decreased Internet revenues for fiscal 2012 by $5.9 million, Internet revenues grew by 27.7% in fiscal
2012 versus the prior year. The combination of a higher active Online subscriber base at the start of fiscal 2012,
up 50.5%, versus the beginning of fiscal 2011, and effective marketing campaigns in North America and
Continental Europe contributed to Online paid weeks growth of 26.7% in fiscal 2012 versus the prior year.
Additionally, end of period active Online subscribers increased by 18.0% to 1.9 million at the end of fiscal 2012
as compared to 1.6 million at the end of fiscal 2011.
Other Revenues
Other revenues, comprised primarily of licensing revenues, franchise royalties, revenues from the sale of
products by mail and to our franchisees, and revenues from our publications, were $134.3 million for fiscal 2012,
a decrease of $13.3 million, or 9.0%, from $147.6 million for fiscal 2011. Excluding the impact of foreign
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