Company AnnouncementsTasi
Leejam Sports Company Announces Its Interim Consolidated Financial Results for the Period Ended on 30 June 2026 (Six Months)
1830 | Leejam Sports
JUL 28, 2026, 05:13 AM (1448/02/14)
10 Min Read
| Element List | Current Quarter | Similar quarter for previous year | %Change | Previous Quarter | % Change |
|---|---|---|---|---|---|
| Sales/Revenue | 411 | 376 | 9.308 | 369 | 11.382 |
| Gross Profit (Loss) | 141 | 135 | 4.444 | 118 | 19.491 |
| Operational Profit (Loss) | 93 | 93 | - | 77 | 20.779 |
| Net Profit (Loss) Attributable to Shareholders of the Issuer | 63 | 72 | -12.5 | 49 | 28.571 |
| Total Comprehensive Income Attributable to Shareholders of the Issuer | 63 | 71 | -11.267 | 48 | 31.25 |
| All figures are in (Millions) Saudi Arabia, Riyals | |||||
| Element List | Current Period | Similar period for previous year | %Change |
|---|---|---|---|
| Sales/Revenue | 780 | 744 | 4.838 |
| Gross Profit (Loss) | 259 | 264 | -1.893 |
| Operational Profit (Loss) | 170 | 183 | -7.103 |
| Net Profit (Loss) Attributable to Shareholders of the Issuer | 112 | 143 | -21.678 |
| Total Comprehensive Income Attributable to Shareholders of the Issuer | 111 | 142 | -21.83 |
| Total Shareholders Equity (after Deducting Minority Equity) | 1,121 | 1,267 | -11.523 |
| Profit (Loss) per Share | 2.23 | 2.76 | |
| 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 “Group” or “Company”) announces its interim consolidated financial results for the period ended 30 June 2026. The Group recorded revenues of SAR 411 million in the second quarter of 2026, achieving growth of 9% compared to the second quarter of 2025. Revenue growth was primarily driven by the following factors: • A 9% increase in subscriptions and membership revenue, driven by the increase in the number of centers and 8% growth in active members, which reached 522,820 members as at 30 June 2026. Subscription and membership revenue from female centers grew by 23%, while male centers grew by 6%. The performance of the Company’s centers during Q2 2026 was as follows: • Male centers: Total revenue reached SAR 282.1 million, up 3.2% YoY (Q2 2025: SAR 273.5 million). Growth was expansion-led, with male centers averaging 156 during the quarter (Q2 2025: 147), while revenue per average center stood at SAR 1.81 million (Q2 2025: SAR 1.86 million), c.2% lower year-on-year. The year-on-year comparison reflects the reclassification of rental income previously reported within male centers, which is now presented within ‘Other Business’ (note 19). • Female centers: Total revenue reached SAR 113.5 million, up 19.2% year-on-year (Q2 2025: SAR 95.2 million), making it the fastest-growing segment. The increase was driven by network expansion, with average centers up to 75 (Q2 2025: 61), while revenue per average center was broadly stable at SAR 1.52 million (Q2 2025: SAR 1.57 million) as newly opened centers continue to mature. Female centers contributed 28% of total revenue, up from 25% in Q2 2025. The Group’s other revenue from rental of shops and internal spaces, and padel courts increased by 76%, demonstrating a higher utilization. |
| 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 Group recorded a net profit of SAR 63 million for the second quarter of 2026, representing a decline of 13% compared to the second quarter of 2025. This was mainly attributable to the following: • A 2% decline in GP margin; 34% in Q2 2026 (Q2 2025: 36%), a natural result of the Group’s expansion plans, as newly opened centers weigh on gross margin until they reach a mature stage. • A 17% increase in general, administrative and selling expenses, due to the Group’s continuous efforts to invest in human capital and IT infrastructure. • A 32% increase in finance costs, primarily driven by a higher average borrowings balance following capital expenditure incurred over the past 12 months, and higher finance costs on lease liabilities as the number of operational centers increased. • Recognition of a non-recurring gain of SAR 3.1 million in Q2 2025, representing a reversal of previously recognized impairment of non-financial assets, which was not repeated in Q2 2026. The decline in net profit was softened by: • A 9% growth in revenues. • Absence of a negative share of results of the associate in Q2 2026 (Q2 2025: losses of SAR 2.2 million). • Higher profit from short-term Murabaha of SAR 0.6 million (Q2 2025: SAR 0.1 million). After excluding all non-recurring items, adjusted net profit for Q2 2026 was SAR 61 million, compared to SAR 65 million in Q2 2025, representing a decline of 6%. |
| The reason of the increase (decrease) in the sales/ revenues during the current quarter compared to the previous one is | The 11% increase in Q2 2026 revenues compared to the previous quarter was mainly attributable to higher subscription and membership revenues (+10%) and higher personal training revenues (+18%), reflecting the recovery in member activity following the seasonal impact of the Holy Month of Ramadan and Eid, which fell in the first quarter of 2026, in addition to the contribution of newly opened centers. |
| The reason of the increase (decrease) in the net profit (loss) during the current quarter compared to the previous one is | The 30% increase in net profit in the second quarter of 2026 compared to the previous quarter was mainly attributable to the growth in revenues and gross profit. |
| 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 Group recorded revenues of SAR 780 million in the first half of 2026, representing growth of 5% compared to H1 2025. This growth was driven primarily by a 5% increase in subscription and membership revenues, supported by the continued expansion of the Company’s network of centers, in addition to higher rental income. This was partially offset by a 4% decline in personal training revenues. The performance of the Company’s segments during H1 2026 was as follows: • Male centers: Total male revenue declined to SAR 537 million (H1 2025: SAR 540 million). Revenue per average male center declined by 6% to SAR 3.5 million (H1 2025: SAR 3.7 million), as a high proportion of recently opened centers remains in the maturation phase. The year-on-year comparison reflects the reclassification of rental income previously reported within male centers, which is now presented within ‘Other Business’ (note 19). • Female centers: Revenue of SAR 216 million, growing by 11% year-on-year (H1 2025: SAR 194 million), driven by an increase in the average number of female centers to 75 (H1 2025: 61) and 23% growth in active members to approximately 127 thousand. Revenue per average female center declined by 9% to SAR 2.9 million (H1 2025: SAR 3.2 million), as a high proportion of recently opened centers remains in the maturation phase. • On a combined male and female basis, revenue per average center declined by 7% to SAR 3.27 million (H1 2025: SAR 3.53 million). This dilution is a natural consequence of the Company’s accelerated expansion — 23 new fitness time centers added over the last twelve months — and is expected to normalize as newly opened centers ramp up toward maturity. |
| 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 Group recorded a net profit of SAR 112 million in the first half of 2026, representing a decline of 22% compared to the first half of 2025. This was mainly attributable to the following: • A 2.3% decline in gross profit margin, to 33.2% in H1 2026 (H1 2025: 35.5%), a natural result of the Group’s expansion plans, as newly opened centers weigh on gross margin until they reach a mature stage. • Recognition of a non-recurring gain of SAR 11.5 million in H1 2025, resulting from the reversal of previously recognized impairment of non-financial assets, which was not repeated in H1 2026. • A 29% increase in finance costs, primarily driven by a higher average borrowings balance following capital expenditure incurred over the past twelve months, higher finance costs on lease liabilities as the number of operational centers increased. • An 8% increase in general, administrative and selling expenses. This came despite the following: • A 5% growth in revenues. • Absence of a negative share of results of the associate in H1 2026 (H1 2025: losses of SAR 4.6 million). • Higher profit from short-term Murabaha of SAR 1.3 million (H1 2025: SAR 0.1 million). After excluding all non-recurring items, adjusted net profit for H1 2026 was SAR 110 million, compared to SAR 127 million in H1 2025, representing a decline of 13%. |
| 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 | Discontinued operations have been presented separately and accordingly, the amounts are exclusive of amounts pertaining to discontinued operations. Please refer to note 5 in the financial statements for discontinued operations. |
| Additional Information | • Active membership grew by 8% year-on-year to 522,820 members as at 30 June 2026. • As of 30 June 2026, the Fitness Time network comprised 230 fitness centers across its Big Box and Xpress formats, including 154 male and 76 female centers, compared with 207 centers as of 30 June 2025. This reflects a net increase of 23 centers over the preceding twelve months. During the period, three Concept Studios were closed, resulting in a total of 17 Concept Studios as of 30 June 2026. Accordingly, the Group's total network reached 247 centers as of 30 June 2026. • EBITDA remained broadly stable year-on-year at SAR 348 million in H1 2026 (H1 2025: SAR 349 million), representing an EBITDA margin of 45% (H1 2025: 47%), as the cost base of newly opened centers absorbed the growth in revenues. • Free cash flow (net cash from operating activities less capital expenditure) reached approximately SAR 195 million in H1 2026, compared to SAR 69 million in H1 2025, supported by an 11% increase in net cash from operating activities to SAR 305 million and lower capital expenditure of SAR 111 million (H1 2025: SAR 207 million). Basic and diluted earnings per share is calculated by dividing the net profit attributable to the equity holders of the parent company for the six-month period ended 30 June 2026 by the weighted average number of shares outstanding during the period, which consisted of 50,538,955 weighted average number of shares for the period (H1 2025: 52,253,327 shares). IFRS 18 Presentation and Disclosure in Financial Statements, issued in April 2024, replaces IAS 1 and is effective for annual periods beginning on or after 1 January 2027 (retrospective application, with restated comparatives and reconciliations to be disc |
Keywords:Company AnnouncementsLeejam SportsTasiConsumer Services
