Leejam’s Q3 profit lifted by opening 11 centers: CEO

Adnan Al-Khalaf, CEO of Leejam Sports Co. (Fitness Time)

Adnan Al-Khalaf, CEO of Leejam Sports Co. (Fitness Time), said the opening of 11 new centers had a faster-than-expected impact on the Q3 2023 net profit. These centers contributed to an increase in the number of members and raised the number of clubs by 20%.

In an interview with Al-Arabiya TV, the top official added that the company is mainly focusing on the growth of the average revenue per club, which reaches 20%.

The company opened 65 sports centers out of a target of 250 centers by 2025, including 25 locations in Riyadh, thanks to rising demand and the focus of expansion efforts in the Kingdom and the UAE, according to the CEO.

Al-Khalaf also expected that more men's and women's clubs will be opened across various regions in Q4 2023 and Q1 2024.

He pointed out that three quarters ago, the company's loan rate witnessed a decline as a result of exploiting the cash liquidity available from net operating income, indicating that it ended Q3 2023 with the highest balance in deferred revenues, which is considered an excellent way to finance expansion plans.

Leejam Sports is working to achieve excellent efficiency in reducing the average cost of establishing clubs, with up to 5-8% of total costs likely to be saved, said the CEO.

He also revealed that the company is committed to allocating SAR 100 million for capital expenditures.

Leejam Sports' profit rose to SAR 227.3 million in 9M 2023, compared to SAR 150.1 million in the prior-year period, according to Argaam's data.