WW International Provides Update on Strong Momentum in Digital Trends, Studio Reopening Plans, and Amended Revolving Credit Facility - Seite 2

“We are focused on the right priorities to maximize our current offerings while also innovating to drive future growth. Our Digital business has strong global momentum. We have started a phased reopening of Studio locations with health and safety being our top priority, and we expect to ramp up and have approximately 400 U.S. locations open by the end of June. While early feedback from Studio reopenings is encouraging, with our Studios having been closed since mid-March, we expect Studio member signups, fees and product sales to be pressured in the second quarter and well-below prior year levels,” said Nick Hotchkin, the Company’s CFO, Operating Officer, North America and President, Emerging Markets. “We believe our strong cash balance, our ability to generate cash, and full access to our undrawn revolving credit facility together provide significant flexibility to drive our priorities forward, regardless of the market environment.”

Q2 2020 Quarter-to-Date Trends

The Company had 4.9 million subscribers as of June 6, 2020, up 7% from June 8, 2019, consisting of 3.8 million Digital Subscribers and 1.1 million Studio + Digital Subscribers.

These subscriber levels reflect the following trends quarter-to-date in Q2 2020:

• Starting in the middle of April 2020, Digital recruitment trends returned to growth on a weekly basis, compared to the prior year period. This weekly growth trend has accelerated since then and is now trending ahead of the weekly recruitment growth rates in the first quarter of fiscal 2019 prior to the escalation of COVID-19 in mid-March.
• Driven by this increase in Digital recruitments, total global recruitments returned to growth on a weekly basis, beginning in the middle of May 2020, as compared to the prior year period.
• The recruitment mix shift reflects the strength of the Company’s Digital business, with approximately 90% of recruits since mid-March coming from the Company’s Digital business.
• The Studio + Digital business continues to experience significant declines in recruitment on a weekly basis as compared to the prior year period.
• Member retention currently remains above ten months.

Due to these member trends, the Company anticipates Digital Subscription Revenues to increase as a percentage of the revenue mix in the second quarter as compared to the prior year period. Revenues from Studio subscriptions and in-Studio product sales continue to be pressured in the second quarter of 2020 due to the pause in in-person workshops; the decline in Studio-related revenues has been partially offset by strength in Digital subscriptions and eCommerce product sales.