Australia’s richest ex-couple Kayla Itsines and Tobi Pearce recently teamed up re-acquire the Sweat fitness business they sold a few years ago.
The pair, who sold Sweat to US fitness conglomerate iFIT for for hundreds of millions of dollars in 2021, retook control of the digital fitness brand for an undisclosed sum in November.
iFIT however struggled to maintain the Sweat brand’s success after taking the reins, and posted an $80million write-down after its first year of ownership.
Now, financial reports filed with ASIC show that iFIT subscription revenue had slipped by a further 14 per cent in the 2022-2023 financial year, down to $61.4m.
Previously, subscription revenue had dropped by 16 per cent in the 2020-21 financial year, equating to a $9.5million loss.
Kayla Itsines and Tobi Pearce’s (both pictured) fitness empire posted a huge $10.7m loss for the 2022-2023 financial year
In the last financial year, iFIT also booked another $3.8m writedown to the value of Sweat and an after tax loss of $10.7m.
Itsines and Pearce founded the Body Guide fitness program in 2015 which later evolved into Sweat.
The ex-couple sold the platform to iFIT for $400million in 2021, following a boom in home exercise when gyms and sports centres closed during the Covid pandemic.
Itsines and Pearce, who sold Sweat to US fitness conglomerate iFIT for for hundreds of millions of dollars in 2021, retook control of the digital fitness brand for an undisclosed sum in November
But subscriptions, which cost $20 per month, started waning once gyms re-opened.
Itsines and Pearce decided to re-enter their Sweat business together in November, with Itsines as the face and Mr Pearce as the brains.
Itsines will go back to her role as the platform’s head trainer and Pearce will focus on the company’s longevity and growth strategy going forward.
in November. iFIT however struggled to maintain the Sweat brand’s success after taking the reins, and posted an $80million write-down after its first year of ownership
In a statement, Itsines said that she had not regretted selling the business and that it had since come ‘full circle’.
‘I am thrilled to be back as an owner of Sweat, a platform that has meant so much to me and to the millions of women it serves,’ she said.
‘The decision to regain ownership is about ensuring the best future for Sweat. We have always been a platform built for women, by women, providing a secure and encouraging space for them to share their transformation journeys.
Financial reports filed with ASIC show that iFIT subscription revenue had slipped by a further 14 per cent in the 2022-2023 financial year, down to $61.4m
‘Our commitment to this community remains unwavering.’
The business partners saw an opportunity to take back ownership of their company as iFIT shifted its focus towards fitness hardware products and away from Sweat.
Ms Itsines and Mr Pearce now plan to continue growing the business out of Adelaide again where they once employed close to 100 people in 2019.
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