Riyadh, Saudi Arabia — Leejam Sports Company reported a net profit of SAR 143 million for the first half of 2025, down 14.4% from SAR 167 million in H1 2024, according to the company’s interim financials posted on Tadawul.

Growth in Memberships and PT Revenues Offset by Cost Pressure

Revenue rose 9.4% year-on-year to SAR 744 million, driven by an increase in both gym subscriptions and personal training services. The company added 28 new Fitness Time centers over the past 12 months, fueling a 9% increase in revenue from core fitness operations.

However, this expansion pushed costs higher. Cost of revenue climbed 18% year-on-year, while general, administrative, and marketing expenses rose 14%, largely due to ongoing digital transformation and talent acquisition.

For Q2 2025, Leejam posted revenue of SAR 376 million, up 10.9% compared to the same quarter last year and 1.9% above Q1. Net profit for the quarter reached SAR 72 million, down 1.4% year-on-year but slightly improved versus Q1.

One-off items had a mixed impact: the company reported SAR 3 million in reversed impairments and a SAR 3.7 million zakat provision recovery, offset by SAR 5 million in losses from associates and SAR 8 million in construction profit reactivations.

The company observed a continued shift toward short-term memberships, with Q2 subscription volume up 8%. The Xpress gym format gained strong traction, with customer numbers surging 65%, compared to a 5% increase in large center memberships.

Total comprehensive income stood at SAR 142 million, while shareholders’ equity increased to SAR 1.27 billion, up 11.5% year-on-year.

What This Means for Investors

  • Revenue growth continues: Gym expansion and training services fuel top-line strength.
  • Cost inflation limits earnings: High operating and investment costs narrowed margins.
  • Segment momentum: Xpress format outpaces larger centers, signaling evolving demand.
  • Balance sheet gains: Equity growth suggests capital strength despite a profitability dip.

THE SAUDI STANDARD’S VIEW: Leejam’s H1 Profit Underscores Strategic Resilience Amid Expansion and Sectoral Growth

Leejam Sports’ SAR 143 million net profit for H1 2025—despite a 14.4% year-on-year decline—demonstrates operational resilience as the company executes a deliberate expansion and digital transformation strategy within Saudi Arabia’s rapidly maturing fitness and wellness sector.

  • A 9.4% increase in revenue to SAR 744 million, supported by 9% growth in membership and personal training, validates strong demand fundamentals and reinforces Leejam’s leadership across diversified formats—including the high-growth “Xpress“ segment, which saw a 65% surge in customers.
  • The short-term margin compression, driven by an 18% rise in cost of revenue and increased administrative spending, reflects calculated reinvestment in capacity expansion and technology adoption, laying the foundation for scalable future growth.
  • Zakat recoveries and impairment reversals bolstered the net profit figure, but also faced headwinds from associate investment losses and resumed construction-related costs, indicating a realistic balance of one-time impacts and underlying performance.
  • Shareholders’ equity rose 11.5% to SAR 1.27 billion, reaffirming financial strength and the company’s ability to grow both its footprint and its capital base amid sectoral transition.

Leejam’s results affirm that profitability can remain intact—even while undergoing aggressive expansion—when supported by operational scale, customer retention, and product diversification. As Saudi Arabia promotes active lifestyles and wellness infrastructure under Vision 2030, Leejam continues to anchor the Kingdom’s fitness transformation through strategic investments and long-term market leadership.

 

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