Fitness Time announce highest annual Net Profit of SR 206 mln ever recorded in its history

Leejam Sports Company (Fitness Time) recorded a net profit after zakat and tax of SR206 million during  2021, compared to losses of SR59 million during 2020).

The operational profit during the current period amounted to SR258 million, compared to losses of SR6 million during the same period of the previous year.

As for gross profit during the current period, it amounted to SR372 million, compared to SR140 million during the same period of the previous year, an increase of 166%.

Earnings per share during the current period amounted to SR3.93, compared to losses of 1.12 during the same period last year.

Leejam Sports Company (Fitness Time) pleased to announce the highest annual Net Profit of SR 206.02 million ever recorded in its history.

For the year ended in 31 December 2021, the company recorded a profit of SR 206.02 million compared to a loss of SR (58.72) million last year mainly driven by growth in revenue of SR 222.68 million, decrease of cost of revenue by SR 9.75 million and net decrease in all other costs (including finance cost and zakat) by SR 32.31 million.

The increase in revenues during the year by SR 222.68 million is mainly due to:

1. Increase in revenue from Subscriptions and membership income by SR 193.29 million due to increased number of new subscriptions and renewals during the year compared to last year.
2. Increase in Personal training income by SR 20.55 million due to more personal training sessions conducted in the clubs in current year.
3. Increase of Rental income and other income by SR 8.84 million due to new rental contracts during the year.

Change in cost of revenue and other expenses during the year compared to last year, mainly due to the following:

1. Cost of revenue decreased by SR 9.75 million representing (-1.86%) mainly due to increase in rent concession by SR10.82 million and less consumable expense due to cost initiatives taken during current year partly offset by increase in salaries and related benefits and government related cost.
2. General & administrative expenses increased by SR 11.41 million (14.83%), mainly due to increase in staff cost, increase in IT cost and Professional fee charges in the current year.
3. Impairment loss and write off on non-financial assets has decreased by SR 41.29 million during the year.
4. Finance cost decrease due to low SIBOR, less interest payment.

Certain corresponding figures in the financial statements have been rearranged and reclassified, wherever necessary, for better presentation and disclosures. However, impact of these adjustments are not material to the financial statements.