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![video link button](/Content/en/images/attachement-icon.jpg)
Adnan Al-Khalaf, CEO of Leejam Sports Co.
Adnan Al-Khalaf, CEO of Leejam Sports Co. (Fitness Time), said that the company is committed to continuing with its plans to post 20% growth in memberships, revenues and profit as a key performance indicator.
In an interview with Argaam on the sidelines of the Leejam Day conference, the top official added that the third quarter was challenging given the higher-performing quarter a year ago.
As for the company's financial results, Al-Khalaf pointed out that Q3 profit was fueled by a well-studied focus on diverse geographical areas and customer segments within sports clubs, especially between male and female customers, in addition to the company’s strategy, which revolves around boosting the customer experience through various programs within the club and the sports club renewal programme.
The CEO also revealed that the number of subscribers reached 484,000 by the end of the third quarter, which is the highest in the company’s history, indicating that the growth exceeded 20% in all clubs, which highlights the operational efficiency.
The conditions of September were in line with expectations, especially with the success of the marketing campaign for the National Day and the months preceding it, said the CEO, reaffirming the efficiency that was achieved through new branches in accordance with the planned efficiency goals.
Regarding the write-off of assets in the areas close to Al Diriyah Gate project, Al-Khalaf explained that the related financial impact amounted to about SAR 11 million, adding that the company is working to mitigate the impact in the geographical area of the Al-Khuzama and Al-Raed districts, part of Diriyah, which are close to the project. He also indicated that the two branches are among the best performing centers within the network in terms of member contribution, profitability and revenue.
“Leejam Day Conference emphasizes professional interaction and aims to provide data on the size of the market from investors, after cooperating with the Ministry of Investment to develop the sports sector, reinforce the sports investment environment in the Kingdom, and inform investors of the latest developments," said Al-Khalaf.
The CEO also expects clubs to open at a higher pace in Q4 2023 than previous quarters, which will positively affect the financial results. "We seek to reach levels similar to the same quarter of the previous year and achieve sustainable growth despite seasonality in the second half, and comparison with the same quarter of the previous year, where the company achieved excellent performance," he stated.
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