Written by Monique Friedlander, Daily Mail Australia
Updated December 19, 2023 02:06, December 19, 2023 07:33
Australia's richest former couple, Kayla Itsines and Tobi Pearce, recently reacquired the sweat fitness business they sold several years ago.
The pair, who sold Sweat to US fitness conglomerate iFIT for hundreds of millions of dollars in 2021, took back control of the digital fitness brand in November for an undisclosed sum.
However, after taking over, iFIT struggled to maintain the success of the sweat brand and took an $80 million writedown a year after taking ownership.
Now, iFIT's subscription revenue has fallen by a further 14% to $61.4 million in the 2022-2023 financial year, according to financial reports filed with ASIC.
Subscription revenue for the 2020-21 fiscal year so far was down 16%, representing a loss of $9.5 million.
In the last fiscal year, iFIT also took a $3.8 million write-down on the value of Sweat, resulting in an after-tax loss of $10.7 million.
Itsines and Pearce founded the Body Guide fitness program in 2015, which later evolved into Sweat.
Ex-couple sells platform to iFIT It was built for $400 million in 2021 as the coronavirus pandemic closed gyms and sports centers and created a boom in at-home exercise.
But once gyms reopened, the $20 monthly subscription fee began to decline.
Itsines and Pearce decided to re-enter the sweat business together in November. Mr. Itsin is the face and Mr. Pearce is the brains.
Mr. Itsines will return to his role as the platform's head trainer, while Mr. Pearce will focus on the company's longevity and growth strategy going forward.
Mr. Itsines said in a statement that he had no regrets about selling the business and that it had since “come full circle.”
“I'm excited to be back as the owner of Sweat, a platform that means so much to me and the millions of women it serves,” she said.
“The decision to take back ownership is to ensure the best possible future for Sweat. We have always been a platform built by women, for women, and a platform for women to share their journeys of change. We have provided a safe and encouraging space.
“Our commitment to this community remains steadfast.”
As iFIT shifted its focus from Sweat to fitness hardware products, the business partners saw an opportunity to take back ownership of the company.
Mr Itsines and Mr Pearce now plan to continue growing the business out of Adelaide, where it previously employed nearly 100 people in 2019.
