| Element List | Current Quarter | Similar quarter for previous year | %Change | Previous Quarter | % Change |
|---|---|---|---|---|---|
| Sales/Revenue | 344 | 302 | 13.907 | 344 | - |
| Gross Profit (Loss) | 135 | 124 | 8.87 | 139 | -2.877 |
| Operational Profit (Loss) | 100 | 92 | 8.695 | 99 | 1.01 |
| Net profit (Loss) | 73 | 73 | - | 94 | -22.34 |
| Total Comprehensive Income | 73 | 74 | -1.351 | 94 | -22.34 |
| All figures are in (Millions) Saudi Arabia, Riyals | |||||
| Element List | Current Period | Similar period for previous year | %Change |
|---|---|---|---|
| Sales/Revenue | 687 | 579 | 18.652 |
| Gross Profit (Loss) | 275 | 233 | 18.025 |
| Operational Profit (Loss) | 199 | 169 | 17.751 |
| Net profit (Loss) | 167 | 135 | 23.703 |
| Total Comprehensive Income | 167 | 137 | 21.897 |
| Total Shareholders Equity (after Deducting Minority Equity) | 1,136 | 960 | 18.333 |
| Profit (Loss) per Share | 3.2 | 2.58 | |
| All figures are in (Millions) Saudi Arabia, Riyals | |||
| Element List | Amount | Percentage of the capital (%) | |
|---|---|---|---|
| Profit (Losses) Resulting From The Change In Investment Propertie’s Fair Value | - | - | |
| All figures are in (Millions) Saudi Arabia, Riyals | |||
| Element List | Explanation |
|---|---|
| The reason of the increase (decrease) in the sales/ revenues during the current quarter compared to the same quarter of the last year is | Leejam Sports Company (The company) is pleased to announce its Interim Condensed Consolidated Financial for the year ended on 30 June 2024, where the Q2 2024 revenue amounted to SAR 344 million, achieving a growth of 14% vs. Q2 2023 which was driven by the increase in number of members and operating centers, as a net of 18 Fitness time centers were added since the end of Q2 2023. The Increase in revenues came as the following: - Increase in subscriptions & membership revenue by 11% compared to Q2 2023. - Increase in paid programs - including personal training (PT) & swimming - revenue by 36% as compared to Q2 2023. |
| The reason of the increase (decrease) in the net profit during the current quarter compared to the same quarter of the last year is | The company achieved a net profit of SAR 73 million in Q2 2024, a growth of 1% vs. Q2 2023.This came despite the following: - An increase of 17% in overall cost of revenue compared to Q2 2023 due to a net addition of 18 Fitness Time centers since the end of Q2 2023, in addition to this, there is an increase in maintenance and repair costs due to the increase of the number of members and the continuation of club refurbishment program “Your Club has Changed” as well as the increase in number of centers operating 24 hours. - An increase in SG&A expenses and an increase in Finance costs due to high interest rates environment. - Losses incurred that is related to the company’s investments in new segments one of which is physiotherapy. Q2 2024 also included the following: - A one off expense impact of SAR -2.9 million due to closure of two centers in Jeddah as result conclusion of multiple legal cases going over the past 3 years. In one of them, the company argued that the annual rent (SAR 2.4 million a year) is overvalued and above market prices. - Recording of around SAR 2.6 million profit from short-term Murabaha. |
| The reason of the increase (decrease) in the sales/ revenues during the current quarter compared to the previous one is | The company reported stable Q2 2024 revenue compared to the previous quarter. This is due to timing effect of new centers opening as well as Q2 coincide with Eid & holidays which is a low season for subscription sales. |
| The reason of the increase (decrease) in the net profit (loss) during the current quarter compared to the previous one is | The decrease in Q2 2024’s net profit by 22% compared to previous quarter is mainly due to: - Q1 2024 including a one-off income amounting to SAR 18 million arising from a favorable rent negotiation of previously impaired centers in Ras Al Khaimah, UAE. - Increase in Cost of revenue as result of opening new centers during Q2. - A net impact of SAR -2.9 million in Q2 2024 due to closure of two centers in Jeddah. |
| The reason of the increase (decrease) in the sales/ revenues during the current period compared to the same period of the last year is | The first half of 2024 revenue amounted to SAR 687 million, achieving a growth of 19% vs. the same period of 2023 which was driven by the increase in number of members and operating centers. The increase in revenues came as the following: - Increase in subscriptions & membership revenue by 15% compared to first half of 2023. - Increase in paid programs - including personal training (PT) & swimming - revenue by 45% compared to first half of 2023. |
| The reason of the increase (decrease) in the net profit during the current period compared to the same period of the last year is | The first half of 2024 net profit amounted to SAR 167 million, achieving a growth of 24% vs. the same period of 2023 which was mainly driven by the increase in revenue. This came despite the following: - An increase of 19% in overall cost of revenue compared to similar period of year 2023 due to increased numbers of operating centers, in addition to the increase in maintenance, repair, and cleaning costs driven by the increase of the number of members and the continuation of club refurbishment program “Your Club has Changed” as well as the increase in number of centers operating 24 hours. - An increase in SG&A expenses by 9% due to more investment in IT & personnel. - Losses incurred that is related to associated Group entities and investments - An increase in Finance costs due to high interest rates environment. The first half of 2024 included: - A one-off income amounting to SAR 18 million arising from a favorable rent negotiation of a previously impaired centers in Ras Al Khaimah, UAE. - A net impact of SAR -2.9 million due to closure of two centers in Jeddah. - Recording of around SAR 6 million profit from short-term Murabaha. |
| Statement of the type of external auditor's report | Unmodified conclusion |
| Comment mentioned in the external auditor’s report, mentioned in any of the following paragraphs (other matter, conservation, notice, disclaimer of opinion, or adverse opinion) | None |
| Reclassification of Comparison Items | The comparatives Financial Statements have been restated to meet with the applied accounting policies for the current period which have been prepared in accordance with International Financial Reporting Standards approved in the Kingdom of Saudi Arabia and other issuances, interpretations and standards approved by the Saudi Organization for Chartered and Professional Accountants (SOCPA). For more information, please see the notes 25 in the Interim Condensed Consolidated Financial Results for the period ended on 30 June 2024. |
| Additional Information | BUSINESS SEGMENT HIGHLIGHTS By the end of Q2 2024, the number of Fitness Time operational centers reached 180. Additionally, 4 clubs were refurbished during the quarter. During Q2, the Group launched two academies, one martial art and the other is football as it explores other sports segments and their potential growth. Male Segment The male segment grew by 10% in Q2 2024 compared to Q2 2023, driven by continuous membership growth and an increase in the total number of centers throughout the year. By the end of the period, the number of active male members reached 336 thousand, and the number of male centers reached 130. Female Segment The female segment revenue experienced double-digit growth, rising by 18% in Q2 2024 due to an increase in the number of ladies’ centers, rising membership numbers across the country, and significantly greater participation in group classes. By the end of the period, the number of active female members reached 92 thousand, and the number of female centers reached 50. Corporate Segment Corporate subscription revenue more than doubled in Q2 compared to Q2 2023 due to the digitization of the corporate onboarding process and the activation of multi-channel access for corporate customers to purchase their subscriptions. New Segments Update In Q2 2024, the Group delivered continued progress in the addition of new sports, wellness and fitness segments. with the opening of 2 academies (swimming & MMA). Within the field of physiotherapy, the Group’s physiotherapy brand, PhysioTherabia continued to open new clinics in new cities across KSA, demonstrating the Group’s commitment to building the largest network of physiotherapy clinics in Saudi Arabia. During the quarter, the Group also acquired a 55% stake in Sports Hub, a company specializing in sports event management, and organizes mass participation sports activities. In Q2 2024, Leejam Sports Company signed a Memorandum of Understanding (MoU with the Saudi Olympic and Paralympic Committee to increase the number of practitioners of several targeted sports in this initiative, which are: Judo, Karate, Rowing, Wrestling, Boxing, Jiu-Jitsu, Taekwondo, Swimming, Fencing, And Weightlifting (Targeted Sports). The MoU focuses on enhancing the partnership between Leejam Sports Company and Saudi Olympic and Paralympic Committee, with the aim of increasing the number of participants in the targeted sports and developing professional athletes in the Kingdom of Saudi Arabia. This to take advantage from the large geographical spread of Leejam Sports Company’s centers, studios and facilities in all regions of the Kingdom and to maximize the benefits of the skills of sports federations’ accredited trainers to promote these sports and train its participants. The MoU also aims to increase the contribution of the private sector to sports development in the Kingdom, promote sports culture, and improve the healthy lifestyle in society, with a focus on increasing access to sports facilities. Members of Leejam Sports Company centers and studios will be able to benefit from the equipment and tools related to training for the targeted sports, and also benefit from the training sessions provided by the trainers of the participating sports federations. |
