Fitness Time profits jump 187% during the 3Q to SR76 million

Leejam Sports Company (Fitness Time) is announces on Thursday that it has recorded, in Q3 2021, its highest quarterly net profit ever, which amounted to SR 76.19M.

This comes after Leejam Sports Company (Fitness Time) announces its condensed interim financial results for the period ended on 30th September 2021 (Nine Months)

The gross profit amounted to SR128 million during the third quarter, compared to SR69 million during the same quarter of the previous year, a growth of 87%.

The operational profit amounted to SR90 million during the third quarter, compared to SR39 million during the same quarter of the previous year, an increase of 130%.

The net profit after zakat and tax during the current period amounted to SR120 million, compared to a loss of SR58 million during the same period of the previous year.

Profits per share during the current period amounted to SR2.29, compared to a loss of SR1.11 during the same period of the previous year.

Net profit in current quarter compared to similar quarter of the previous year increased by SR 50.03M due to the increase in revenues by SR 42.50M and decrease in costs of revenues by SR 17.39M partly offset by net increase in all other costs (including finance cost and zakat) by SR 9.86M.

Increase in revenues during the quarter due to:

– Increase in membership revenue by SR 38.34M.

– Increase in personal training (PT) revenue by SR 1.49M due to more session conducted during the quarter.

– Increase in rental income and other income by SR 2.67M.

Cost of revenue decreased by SR 17.39M mainly due to applying cost cutting initiatives and rent concession recognized during the quarter.

General & administrative costs increased mainly due to higher administrative costs such as bank commissions and Information technology costs recognized during the current quarter.

Advertising & marketing costs decreased mainly due to lower external costs for promotions and selling expenses recognized during the current quarter.

Impairment losses increased mainly due to recognizing provision of impairment for certain clubs under constructions during the quarter.

Finance costs decreased by SR 0.77M mainly due to less loans and lower interest rates compared to similar quarter of the previous year.

Increase in net profit by SR 25.30M compared to the previous quarter was mainly driven by increase in revenue by SR 31.97M, decrease in cost of revenue by SR 7.75M partly offset by net increase in all other costs by SR 14.42M.

Increase in revenue during the quarter:

• Increase in membership revenue by SR 28.26.
• Increase in personal Training (PT) revenue d by SR 2.46M due to more session conducted in the quarter.
• Increase in rental income and other income by SR 1.25M.

Cost of revenue due to cost cutting initiatives and rent concession recognized during the quarter.

General & administrative costs increased mainly due to higher administrative costs such as bank commissions and Information technology costs recognized during the current quarter.

Advertising & marketing costs decreased mainly due Lower external costs for promotions and selling during recognized during the current quarter.

Impairment losses increased mainly due to recognizing provision of impairment for certain clubs under constructions during the current quarter.

Leejam Sports Company (fitness time) has recorded net profit of SR 120.12M compared to the net loss of SR 58.21M in the similar period of the previous year mainly driven by increase in revenue by SR 190.74M partly offset by increase in cost of revenue by SR 1.13M, and net increase in all other costs (including finance cost and zakat) by SR 11.28M.

Increase in revenue due to:

• Increase in membership revenue by SR 164.34M.
• Increase in personal Training (PT) revenue by SR 19.13M due to more session conducted during the period.
• Increase in rental income and other income by SR 7.27M.

Cost of revenue increased mainly due to more operating days in 2021 as the clubs were closed for 30 Days in 2021 against 98 days in 2020 because of Covid -19 pandemic restrictions, such increase partly offset by increase in rent concession recognized.

General & administrative costs increased mainly due to higher administrative costs such as employees’ costs.

Advertising & marketing costs decreased mainly due to lower external costs for promotions and selling expenses during the current period.

Impairment losses increased mainly due to recognizing provision of impairment for certain clubs under constructions during 2021.

Finance cost decreased by SR 5.09M mainly due to less loans and lower interest rate compared to previous year.

Certain comparative period amounts have been correctly reclassified and represented for the purpose of better presentation.