Leejam's Q4 2018 performance exceeds estimates: NCBC

Fitness Time (Leejam) reported a higher than expected set of Q4 2018 results. Net income increased 11.1 percent year-on-year (YoY) to SAR 53.9 million. However, adjusting for one-offs, adjusted net income increased +40.5 percent YoY to SAR 68.2 million. This compares to the NCB Capital's estimates of SAR 61 million, the brokerage said in an earnings review on Wednesday.​

Revenues increased by 15.8 percent YoY in Q4 2018 to SAR 225 million. This exceeds the 9M 2018 top-line growth of 6.8 percent YoY.

“We believe the growth in top-line came primarily as a result of the expansion in ladies’ fitness centers. The company increases the female center count from 8 in 2017 to 24 centers by 2018. Total gyms count increased from 112 branches in 2017 to 123 branches in 2018. This reflects a like-for-like (LFL) of 6 percent,” the brokerage report added.