Peloton: Eye-watering UK losses continue as more jobs cut
The UK arm of Peloton has reported another eye-watering loss as it continued to significantly cut jobs, it has been revealed.
The London-headquartered division has posted a pre-tax loss of £94.3m for the 12 months to 30 June, 2024, after having also lost £115.2m in the prior year.
The latest loss comes after Peloton UK had lost £173.7m in the year to June 2022.
New accounts filed with Companies House also show the firm’s headcount reduced from 441 to 301 in the financial year.
That decline comes after Peloton UK’s arm cut its headcount from 682 in the prior 12 months.
The results also show that its revenue ticked up slightly from £93.8m to £94.5m in the year.
Peloton’s revenue is made up of connected fitness sales and subscriptions.
In the financial year, subscriptions made up 62 per cent of the company’s revenue at £58.2m – a five per cent rise.
Peloton said it is continuing to add members and “experience low churn rates”.
Connected fitness revenue for the 12 months totalled £34.2m, a fall of six per cent.
The business said the decrease was largely because of lower sales of bikes and accessories.
Major restructure at Peloton
Despite the huge pre-tax loss, Peloton said its gross profit increased in the year from £6.8m o £9.9m while its operating loss was cut from £98.1m to £88.9m.
Peloton said its gross profit “improved significantly” because of an overall decrease in payroll-related costs “due to various restructuring initiatives”.
The reduction in its operating loss was helped by a fall in the cost of sales by three per cent and administrative expenses by six per cent.
In the year restructuring costs totalled £5.4m, down from £17.1m.
The results come after the board of Peloton’s US parent company approved a new restructuring plan in April 2024 to “position Peloton for sustained, positive free cash flow, while enabling the company to continue to invest in software, hardware and content innovation, improvements to its member support experience and optimisation of marketing efforts to scale the business”.
The company said that the majority of the 2024 restructuring plan is to be implemented by the end of its current financial year.
A Peloton spokesperson said: “The UK is an important market for Peloton, and we continue to invest and innovate across our hardware, software, and content portfolios.
“As previously announced, we began a comprehensive restructuring program in February 2022, and in FY24 (year ended June 30th 2024), we continued to identify operational efficiencies through various initiatives, including reducing our retail showroom footprint and reducing headcount.
“This FY24 update reflects the changes Peloton has made to create a cost structure that is right-sized for our business, while enabling Peloton to further invest in a best-in-class experience for current and future members.”