Leejam Sports Company, the largest operator of fitness centers in the Middle East and North Africa, achieved record-breaking results in terms of revenue and net profits in Q3 2023, with SR348 million ($92.76 million) and SR92 million, respectively. This represents a year-on-year increase of 32 percent and 35 percent, compared to Q3 2022. These results follow the strong performance and record profits Leejam reported in the first half of the year, where the exceptional performance in Q3 contributed to the results for the first nine months of 2023, reaching SR927 million in revenue, an increase of 27 percent, and SR227 million in net profits, a rise of 51 percent compared to the same period in 2022. A total of 448,000 members registered by the end of September 2023, marking the highest figures ever recorded for both the male and female sectors.
Adnan Al-Khalaf, CEO of Leejam Sports Company, said: “Leejam Sports has maintained consistent profit growth throughout 2023, setting record levels across all financial indicators during Q3, which culminates in continued exceptional performance since the beginning of the year. Much of this strong and continuous performance is attributed to the company’s product quality, diverse services, integrated strategy for attracting members from all segments, and its commitment to enhancing the customer journey and enriching their experience. The opening of 11 new centers since the end of September 2022 demonstrates the company’s dedication to expanding access to a variety of sports activities, contributing to building a vibrant community that promotes health, happiness, and activity in all areas it serves.”
Profits across sectors
1. Male centers: The segment revenues for the current year’s Q3 and the first nine months reached SR263 million and SR696 million, with an increase of 33 percent and 27 percent, respectively. The number of male members reached 348,000 by the end of Q3, a historical high.
2. Female centers: The segment revenues for the current year’s Q3 and the first nine months reached SR84 million and SR224 million, with an increase of 31 percent and 31 percent, respectively. The number of female members reached 100,000 by the end of Q3, a historical high.
3. Corporate sector: The growth in corporate segment revenues is partly attributed to the improved onboarding experience for sector members through easy, seamless, and multi-channel digital services.
Leejam’s operating profits saw significant growth in Q3 and the first nine months of the year, despite increased sales and marketing expenses, general and administrative costs, including expenses related to hiring and investments in new technologies. The company’s profits before accounting for depreciation, amortization, interest, zakat, and taxes increased by 34 percent and 32 percent during Q3 and the first nine months of the year, amounting to SR191 million and SR481 million, respectively, driven by higher operating profits. Additionally, the company also recorded its highest-ever deferred revenue balance, propelled by increased subscription sales during the successful promotional campaign for Saudi National Day in September. Membership and subscription revenues showed growth during Q3, reaching SR305 million, a 30 percent increase compared to Q3 2022.
This increase can be attributed to the continuous and comprehensive improvement of customer experiences across all membership categories.