Nov. 5, 2015 - Despite all the hype over the Oprah deal, one should remember that revenues and paid weeks are still declining significantly. Q3 2015 revenues were $273.3 million, down 20.8% (15.6% on a constant currency basis) vs. the prior year period, with total paid weeks down 15.7%. Q3 2015 net income was $21.8 million versus net income of $37.9 million in the prior year period.
NACO revenues were down 17.9%, but as usual, Continental Europe fared better with an 8.8% decline. According to CEO Jim Chambers: "In December, we will be launching a comprehensive program innovation as we expand our purpose from weight loss alone to more broadly helping people lead healthier, happier lives," commented Jim Chambers."
For the first 9 month of 2015, revenues were $724 million, and guidance for the full year is for $1.16 billion. The company had 1.4 million active online subscribers as of the end of Q3.
The complete press release and all financial tables can be found here:
We are a little more than a month away from hearing what the major program innovation will be. If it is compelling, innovative, and has real substance, then this, in combination with the Oprah effect, may turn the company around in 2016. That remains to be seen, as reversing a 15% decline into positive numbers is still a major feat.