Leejam’s H1 2022 net profit leaps 87% to SAR 82 mln; Q2 down 29% to SAR 36 mln

Leejam Sports Co. (Fitness Time) recorded an 87% surge in H1 2022 net profit after Zakat and tax to SAR 82 million from SAR 43.9 million in the year-earlier period.

The gym operator attributed the positive results to revenue growth by SAR 94 million year-on-year (YoY). Membership revenue rose by SAR 76 million YoY. Personal training (PT) revenue logged a rise of SAR 10 million on an annual basis. Rental and other income increased by SAR 8 million.  

The revenue increase was primarily driven by a rise in the operating days during the current period compared to the similar period last year. In 2021, gyms were closed for 30 days. 

On the other hand, general and administrative (G&A) expenses increased mainly due to more operating days in H1 2022, compared to the corresponding period last year. 

The company’s Q2 2022 net profit after Zakat and tax fell 29% to SAR 36 million, compared to SAR 50.9 million in the prior-year period, due to an increase of SAR 21.81 million in the cost of revenue, along with a net increase in all other costs (including financing costs and Zakat) by SAR 4.16 million, despite revenue growth of SAR 11.1 million.

Compared to Q1 2022, net profit declined 21.3% from SAR 46 million.

Total shareholders’ equity, after minority interest, reached SAR 817.4 million as of June 30, 2022, compared to SAR 708.40 million in the corresponding period of 2021.

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