Kayla Itsines’ fitness app takes $80 million hit in first year after sale

·

Fitness app SWEAT has gone into an $80 million loss in its first year under foreign ownership after being sold by South Australian fitness trainer, Kayla Itsines, in 2021.

Itsines, alongside ex-fiance Tobi Pearce, sold the global health and fitness app to US-based tech giant, iFIT, in July 2021 for $400 million.

Itsines and Pearce continued in their existing roles at SWEAT with the company headquarters remaining in Adelaide, SA.

The pair became globally recognised when their workout e-book, Bikini-body Guide, shot to popularity in 2014 and soon after SWEAT was launched in 2015.

At the time of selling the fitness app to iFIT, based in north Salt Lake City in Utah, it had been downloaded more than 30 million times and generated $99.5 million in revenue.

SWEAT was booming when gyms and sports centers were closed during the COVID-19 pandemic, due to offering home workouts and fitness programs globally. However, as COVID-19 restrictions eased and people were heading back to the gym, SWEAT has faced a decline in revenue. 

SWEAT reported an $85 million loss in the 11 months to May 2021. 

According to The Advertiser, Itsines announced in November that more than 30 staff would be laid off at SWEAT’s headquarters in Adelaide, reducing the numbers from 100 when it was at its peak in 2021.

A SWEAT spokesperson said the company had been “repositioned and right-sized” to cater to customers who were increasingly combining home workouts with in-gym exercise.

“The decrease in revenue is due to increased competition in the market and follows the same trend as the major players in the digital fitness industry,” the spokesperson told The Australian

“In addition, there is no indication the future operating cashflows of the business will be negative for the next period based on management’s best estimate.”

According to financial statements, iFIT have paid out Itsines and Pearce $119.6 million in cash, shares and incentive-based payments to date.

The Greek Australian fitness trainer remains the face of SWEAT and is involved in the business. The SWEAT app was sold with the promise of continual investment in the brand, training content, and the brand’s online presence in key international markets.

Source: The Australian.

Cretan Convention - Web Banner

Advertisement

Share:

KEEP UP TO DATE WITH TGH

By subscribing you accept our Terms of Service and Privacy Policy.

Advertisement

Latest News

Matt Pillios named Kay & Burton’s 2025 Victorian Agent of the Year

Star real estate agent Matt Pillios has reclaimed his place at the top, being named Kay & Burton’s 2025 Victorian Agent of the Year.

Greek astronomer to present at Melbourne seminar on preserving the stars

For millennia, humanity has looked up in awe at the night sky, finding in its silent beauty a profound source of inspiration.

Historic Plaka landmark from iconic Greek film to be restored

The “Kokovikos House,” is named after the fictional couple in Giorgos Tzavellas’ bittersweet classic starring Konstantinou and Kontou.

Melbourne’s Sunday morning strollers walk, talk and keep Greek alive

On a crisp Sunday morning at Merri Creek, a group of walkers from the Sunday Morning Strollers, winds its way along the leafy green trail.

A sweet favourite: Niki Louca’s authentic baklava recipe

Niki Louca from My Greek Kitchen shares her favourite recipe for baklava with The Greek Herald.

You May Also Like

Greek-Australian rockstar turned priest, Father Themi, in London to promote work in Sierra Leone

Father Themi Adamopoulos has led a more unconventional life to what one would expect a priest to lead. In his youth he was a rock...

Kalymnios’ ‘Opou GIS kai PATRIS’ comedy to take the stage at 42nd Greek Festival of Sydney

The 42nd Greek Festival of Sydney is proud to announce the captivating theatrical comedy, ‘Opou GIS kai PATRIS’, by Konstantinos Kalymnios.

Ithacans in Melbourne enjoy sell-out film screening to support archaeological preservation

On Sunday, at Palace Como in Melbourne, a sell-out crowd of 135 Ithacans and friends gathered to see the historical epic, The Return.