Leejam’s operating centers reach 195 by Q1-end: CEO

Adnan Alkhalaf, CEO of Leejam Sports Co.

Leejam Sports Co.’s (Fitness Time) operating centers and studios reached 195 by the end of Q1 2024 after opening four new centers in Riyadh and Jizan, CEO Adnan Alkhalaf told Argaam.

He added that the company has completed the procedures for adding Champs Co., which operates four specialized gyms in Dubai, to its club network.

For more exclusive interviews

Additionally, the group renovated six “Fitness Time” centers and upgraded one from the “Fitness Time Pro” brand to “Fitness Time”.

Commenting on the financial results, Alkhalaf said that the results came on the back of the growth in the number of members compared to Q1 2023, driven by the increase in the number of operating centers and the renewal of many existing clubs.

Leejam’s strategy focuses on enhancing service quality, retaining current members, and attracting new ones, he added.

The CEO said that the company successfully mitigated the usual seasonality in the first quarter, showcasing the effectiveness of its strategy in boosting member participation. Moreover, smart investments aimed at raising service levels, developing infrastructure and technical solutions, and expanding service offerings contributed to this success.

In the male segment, revenues grew by 19% year-on-year (YoY), thanks to an increase in the number of members and new center openings, as membership in men’s centers reached 296,000 by the end of Q1 2024.

Female segment achieved a revenue rise of 27% YoY, driven by an increase in the number of ladies’ centers and an increase in female membership to 103,000 by the end of the three-month period.

Alkhalaf said PhysioTherabia Co. was still within the first year of establishment and will not affect the results of Leejam. However, PhysioTherabia continued its expansion, opening eight new branches and bringing the total number of clinics to 12 by the end of Q1.

On the expansion plans, he explained that the company has strategically expanded into more than nine cities across the central, eastern, western, southern and northern regions of the Kingdom. The company aims to reach 250 centers by the end of 2025, taking advantage of favorable for each opportunity.

Leejam continues to implement its strategic initiatives and programs during the second quarter, with more than 65 centers under construction by the end of the first quarter.

According to the data available on Argaam, the company’s profit increased to SAR 94 million in Q1 2024, compared to SAR 63 million a year ago.