Leejam takes lion’s share of sector; aims to run 250 branches by 2025: CEO

Adnan Alkhalaf, CEO of Leejam Sports Co. (Fitness Time)

Leejam Sports Co. (Fitness Time) acquires the lion’s share of the Kingdom’s sports centers sector, CEO Adnan Alkhalaf told Argaam, stressing that the company views competition as healthy for market growth and raising the quality of services provided.

There were many sports facility industry players already operating in the market before Leejam’s entry. However, by competing and providing services in quality, the company was able to take the largest market share and compete strongly.

Alkhalaf noted that the company aims to run 250 centers under the Fitness Time brand by 2025. Further, Leejam was able to obtain 50 sites for future expansions, most of which will be in Riyadh, and is currently working to secure other spaces to reach its target.

Commenting on the latest financial statements, the CEO said that the company’s revenues and net profits for this year’s first half and second quarter were the highest since listing.

He explained that this growth was driven by the increase in operating centers and the number of subscribers, resulting from concentrated efforts in all segments and the institutional approach to managing the company's activities. This contributed to mitigating the impact of business seasonality in H1 2023, Alkhalaf indicated, noting that deferred revenues amounted to about SAR 373 million by the end of Q2 2023.

He pointed out that memberships and subscriptions for the men, ladies and corporate segments recorded higher growth rates in H1 2023, compared to the same period last year. Additionally, centers operating under the Fitness Time brand reached 163, while the total members’ count reached 367,000.

The men Fitness Time centers reached 116 with 221,000 members, compared to 47 Fitness Time ladies’ centers (69,000 members). The number of members in the corporate segment totaled 77,000 by the end of June, Alkhalaf continued.

The CEO also revealed the completion of setting up Integrated Medical Care Services Co., a joint venture (JV) with Burjeel Gulf Medical Care Co., a subsidiary of UAE-based Burjeel Holding Co., stressing that three physiotherapy centers are being finalized to be officially launched in the coming period.

Elsewhere, Alkhalaf expected Leejam to maintain growth in the next quarter, with the company logging the highest ever revenue and membership rates in the second half of 2022.

Leejam reported a 65% year-on-year (YoY) jump in H1 2023 net profit to SAR 135.1 million. Earnings for the second quarter of this year more than doubled YoY to SAR 72.5 million, Argaam earlier reported.