Leejam reports 49% net profit growth to SAR 94M in Q1 2024

Revenue grew 24% year-on-year (YoY) to SAR 344 million driven by the increase in number of members and operating centers, as 35 new facilities were added since the end of Q1 2023.

Subscriptions and membership grew by revenue by 19% YoY, revenue from paid programs rose by 49% YoY, while rent and other revenue led up 92% YoY.

Q1 2024 cost of revenue increased 21% YoY as 18 Fitness Time centers were added, along with an increase in maintenance, repair, and cleaning costs due to higher number of subscribers. General, administrative, selling and marketing expenses jumped by 30%, driven by increased spending on marketing and investments in digital solutions and human capital development, in line with the company's strategic plan.

The company also cited higher cost of finance due to the hike in interest rates.

Q1 2024 also included a one-off income of SAR 18 from renting a previously impaired center in Ras Al Khaimah, in addition to SAR 3.4 million gains from short-term Murabaha.

On a quarterly basis, net earnings declined 27.1% from SAR 128.93 million.

Shareholders’ equity, after minority interest, reached SAR 1.11 billion by March 31, 2024, compared to SAR 919 million in the prior-year period.