PRESSR: Leejam Sports achieves the highest percentage of profits and breaks records for the number of subscribers in the third quarter of 2023
Membership and subscription revenues achieved growth during the third quarter, recording 305 million riyals.
Leejam achieved record results in terms of revenues and net profits during the third quarter of 2023, recording 348 million riyals and 92 million riyals.
Kingdom of Saudi Arabia, Riyadh: Leejam Sports Company, the largest operator of fitness centers in the Middle East and North Africa region, achieved record results in terms of revenues and net profits during the third quarter of 2023, recording 348 million riyals and 92 million riyals - which represents an annual increase of ( 32% and 35%, respectively, compared to the third quarter of 2022. These results come as a continuation of the strong results and record profits announced by Leejam in the first half of the year, as Leejam’s exceptional performance during the third quarter contributed to the results for the first nine months of 2023 reaching (927 million riyals) for revenues, an increase of (27%) and (227%) One million riyals) for net profits, an increase of (51%) compared to the same period in 2022. In addition to a record increase in the number of subscribers during the third quarter of 2023, as the total number of members rose to 448 thousand by the end of September 2023, and the men’s and women’s sectors recorded the highest number of subscribers ever.
In this context, Mr. Adnan Al-Khalaf, CEO of Leejam Sports Company, said: “Lejam Sports maintained steady growth rates in terms of profits throughout 2023, as it recorded record levels across all financial indicators during the third quarter, which comes as a culmination of the record performance rates that have continued since the beginning of the year. These strong and continuous results during the year are due in large part to the quality of the company’s products and the diversity of its services, its integrated strategy to attract subscribers from all categories and meet their needs, and its keenness to enhance the customer journey and enrich their experience.The opening of 11 new centers since the end of September 2022 reflects the company’s dedication to expanding The scope of access to a variety of sporting activities, as Leejam makes unprecedented contributions to building a vibrant community whose members enjoy health, happiness and activity in all the regions it serves.”
Profits at the sector level
Men's Centers Sector: The sector's revenues during the third quarter and the first nine months of this year reached 263 million riyals and 696 million riyals, an increase of 33% and 27%, respectively. The number of male members reached 348,000 by the end of the third quarter, which is the highest percentage historically.
Women's Centers Sector: The sector's revenues during the third quarter and the first nine months of this year reached 84 million riyals and 224 million riyals, an increase of (31%) and (31%), respectively. The number of female members reached 100,000 by the end of the third quarter, the highest historically.
Corporate: The growth in Corporate segment revenues was due in part to improving the onboarding experience for segment members through easy, seamless, multi-channel digital services.
The bridle equation to achieve profits despite increased costs
The growth in the company's operating profits during the third quarter and the first nine months of the year came despite an increase in selling and marketing expenses, and general and administrative expenses, including expenses related to employment and investments in new technologies. The company's profits before depreciation expenses, profit, amortization, interest, zakat and taxes increased during the third quarter and the first nine-month period of the year by 34% and 32%, recording 191 million riyals and 481 million riyals, respectively, on the back of increased operating profits. The company also recorded the highest balance of deferred revenues ever in its history, driven by the increase in subscription sales in the third quarter during the successful promotional campaign on the occasion of Saudi National Day during September 2023. Membership and subscription revenues achieved growth during the third quarter, recording 305 million riyals, which represents an increase of 30% compared to the third quarter of 2022. This increase is due to growth in membership revenues for all categories due to continuous and comprehensive improvement of customer experiences.
Leejam strategy for expansion and development
Regarding Leejam Sports’ strategy for expansion and development, Al-Khalaf said, “At Leejam Sports, we focus on a clear strategy to follow two paths. The first is the growth and development of existing clubs, and working to renew them and increase the number of members in them. This is done within the “Your Club is Changing” project, which included developing 40 clubs to "Now and it is still ongoing. The second path is to announce the reins of expansion to more than 100 additional clubs."
Commenting on the expansion plans of Leejam Sports Clubs, Adnan Al-Khalaf said during his interview with Al-Arabiya channel: “After opening 11 branches in the third quarter of this year, we are continuing with the expansion plans for its clubs, as we aim to reach 250 clubs by 2025 at the level of the Kingdom and the Emirates, and we expect within "The current and next quarter will achieve the highest rate of openings for our clubs, whether women's or men's." Pointing out that more financial data will be disclosed in addition to the company’s new strategy within the program of the Leejam Day conference scheduled to be held on November 6, 2023.
The growth in membership numbers has enhanced the demand for personal training services, which has led to an increase in the sector’s revenues to 37 million riyals and 100 million riyals during the third quarter and the first nine months of the current year, respectively. This is a result of the company’s investments in training programs, whether in swimming, group exercises, or specialized exercises such as boxing, cycling, and other exercises designed scientifically and with high quality to provide a better experience for customers. The improvements made to our digital platform for members in 2023 resulted in facilitating members’ experiences in purchasing, paying, booking, logging in to and evaluating their sessions, in an important step that succeeded in improving the experience of customers of personal training products and improving the quality of services provided to them.
Moreover, increasing the level of digitization of the members’ experience and the way they interact with personal trainers through our electronic platform has allowed them to better utilize the capabilities of personal trainers, and provide them with more opportunities to enhance their activity and generate more profits for themselves and the company.
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About Leejam Sports
Leejam Sports Company is the only publicly traded fitness company in the MENA region, the proud owner of the “Fitness Time” brand, and a full-service health and fitness provider.
The company has invested in all aspects of its fitness centers to provide its subscribers with the highest standards in sports, entertainment and fitness. In addition to its modern equipment, the company is proud of a distinguished group of highly qualified employees; To provide ideal service and an exceptional experience to all its subscribers. Fitness Time strives to provide the best fitness and sports services through its constantly growing network of fitness centers throughout the Middle East. They are all confident that everyone can achieve their health goals through exercise and achieve fitness for the mind and body.
© Press Release 2023
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