2022 ANNUAL FINANCIAL RESULTS
Earnings Release
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LEEJAM SPORTS COMPANY ANNOUNCES ITS 2022 ANNUAL FINANCIAL RESULTS, ACHIEVING ITS HIGHEST REVENUE AND NET PROFIT EVER
• Leejam closed 2022 with 327 thousand members – its highest year-end mem- ber count ever – up by 13% compared to the end of 2021.
• In 2022, Leejam achieved its highest revenues and net profit at SAR 1.1 billion and SAR 257 million, respectively.
• The Company added 11 Centers in 2022 and ended the year with 156 operat- ing centers.
• Despite inflation, the Company maintained average Sales, general and admin- istrative expenses per center for FY 2022 compared to FY 2021.
• For FY 2022, the Company registered a gross margin, EBITDA margin, and net profit margin of 41%, 52%, and 24%, respectively.
Riyadh, Saudi Arabia, 05 March 2023: Leejam Sports Company (“Fitness Time”
or the “Company”), the leading sports company in Saudi Arabia and the Middle East region; and owner and operator of the Fitness Time chain, has released its annual results for the year ended on 31st December 2022 showing record revenues, profits and customers’ membership.
Marking a record year, the execution of the Company’s strategic plan resulted in the onboarding of its highest-ever number of members along with higher number of operating centers and days compared to 2021. Various promotional campaigns have also contributed to the revenue growth despite an increase in the overall cost of revenue. The Company also saw membership growth across the male, female and corporate segments.
PERFORMANCE HIGHLIGHTS
The Company achieved a net profit of SAR 257 million in FY 2022, compared to SAR 206 million for 2021, mainly due to the following :
• Revenue grew by 20% to reach SAR 1,066 million for FY 2022 compared to SAR 885 million in 2021.
• Gross profit increased by 17% year-on-year (YoY), reaching SAR 436 million by year-end, compared to SAR 373 million in 2021, mainly due to revenue growth.
This came despite the increase of 23% in overall cost of revenue compared to the previous year, which was driven by additional operating centers and days during the year.
• EBITDA increased 19% YoY reaching SAR 554 million in the FY 2022 compared to SAR 467 million in 2021 due to increased revenues.
• Average Revenue per Center grew 9% to SAR 7 million in FY 2022 compared to FY 2021.
• The Company maintained average Sales, general and administrative expenses per center for FY 2022 compared to FY 2021.
SEGMENT PERFORMANCE
Fitness Time revenue sources is as below
• Subscriptions and membership revenue grew by 20%, reaching SAR 932 mil- lion for FY 2022 compared to SAR 775 million in FY 2021.
• Personal Training revenue increased by 14%, reaching SAR 103 million for FY 2022 compared to SAR 90 million in FY 2021.
• Rental & other revenue increased by 55%, reaching SAR 31 million for FY 2022 compared to SAR 20 million in FY 2021.
Fitness Time segments’ performance is as below:
• Male Centers segment revenue grew by 22%, reaching SAR 808 million for FY 2022 compared to SAR 665 million in FY 2021.
• Operating male centers & Member count at the end of December 2022 stood at 112 centers and 195 thousand members compared to 103 centers and 190 thousand members at the end of December 2021.
• Female Centers segment revenue increased 17%, reaching to SAR 258 million for FY 2022 compared to SAR 220 million in FY 2021.
• Operating female centers & member count at the end of December 2022 was 44 centers & 66 thousand members compared to 42 centers & 59 thousand members at the end of December 2021.
• Corporate segment member count at the end of December 2022 reached to 66 thousand members compared to 40 thousand at the end of December 2021.
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P&L SUMMARY
(SAR M) 2022 2021 Change%
Revenues 1,066 885 20%
Gross Profit 436 373 17%
Gross Profit Margin 41% 42%
Operating Profit 317 260 22%
Operating Profit margin 29% 29%
EBITDA 554 467 19%
EBITDA margin 52% 53%
Net Profit 257 206 25%
Net Profit margin 24% 23%
EPS (SAR) 4.9 3.9 -
BALANCE SHEET SUMMARY
(SAR M) 2022 2021 Change%
Cash & cash equivalents 301 180 67%
Total Assets 2,698 2,594 4%
Total liabilities 1,760 1,789 (2%)
Total equity 939 805 17%
CASH FLOWS SUMMARY
(SAR M) 2022 2021 Change%
Operating Cash Flows 669 439 52%
Investing Cash Flows 180 228 (21%)
Free Cash Flows 489 211 132%
DISCLAIMER
All information included in this document is for general use only and has not been independently verified, nor does it coSnstitute or form part of any invitation or inducement to engage in any investment activity, nor does it constitute an offer or invitation or recommendation to buy or subscribe for any securities in the Kingdom of Saudi Arabia, or an offer or invitation or recommendation in respect of buying, holding or selling any securities of Leejam Sports Company.
Leejam Sports Company accepts no liability and will not be liable for any loss or damage arising directly or indirectly (including special, incidental or consequential loss or damage) from the use of contents in this document, howsoever arising, and including any loss, damage or expense arising from, but not limited to, any defect, error, imperfection, fault, mistake or inaccuracy with this document.
This document may include statements that are, or may be deemed to be,
“forward-looking statements” with respect to the Company’s financial position, results of operations and business. Information on the Company’s plans, intentions, expectations, assumptions, goals and beliefs are for general update only and do not constitute or form part of any invitation or inducement to engage in any investment activity, nor does it constitute an offer or invitation or recommendation to buy or subscribe for any securities in any jurisdiction, or an offer or invitation or recommendation in respect of buying, holding or selling any securities of Leejam Sports Company.
