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The UK arm of Peloton has announced losses of £210m for the year ended 30 June 2022, nearly double the £81m loss it posted last year.
Furthermore, the company saw a 13% decrease in turnover from £147m down to £128m.
Peloton attributed the decrease in turnover down to slowing sales following the end of Covid lockdown restrictions.
The company’s cost of goods sold increased 17% mostly as a result of it opening a permanent Peloton Studio in Covent Garden London.
The group also had a £37m restructuring cost to deal with following the decision to stop manufacturing its own bikes to cut expenditure.
Despite this the company’s subscription sales increased 89% year-on-year and it stated that it is seeing low churn rates.
A spokesperson for Peloton said: “International markets continue to be a focus and area of growth for Peloton. The work of FY22 has been about bringing costs in line with revenue globally and on a market-by-market basis as we pursue our top priority of becoming free cash flow positive globally.
“FY22 was a transformational year for Peloton as we began to restructure our operations, reduced headcount, and outsourced manufacturing of Connected Fitness Units. This update reflects the changes Peloton has made in creating a sustainable structure that allows us to focus on growth and continue to deliver an amazing member experience.’”
