Leejam develops new strategy as average monthly members rises over 25% in 2023: Chairman

Ali AlSagri, Chairman of the board of directors 

Leejam Sports Co. (Fitness Time) is working on developing a new strategy for the period from 2025 to 2030, Chairman Ali AlSagri said, adding that the new strategy will be launched soon.

In an interview with Argaam, AlSagri said that Leejam currently has a clear strategy that will see it reach 500,000 members and 250 centers by 2025, stressing that work is underway this year to put these plans into action to realize the objectives set out.

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Commenting on financial results, the Chairman believes that Leejam achieved strong growth in revenues, particularly revenues from membership, subscriptions, and paid programs.

This growth was supported by an increase in the number of operating centers for the Fitness Time brands, he noted, adding that the average number of monthly members in 2023 grew by more than 25%.

All business segments contributed to the growth, including men’s and women’s centers, Xpress centers, and corporate services, which is a strong indicator of the level of maturity achieved by the segment’s business model over time, AlSagri said.

He went on to say that the central region was one of the regions that contributed the most to revenues, as it has the most of the company's branches, while the men’s centers are considered the greatest contributor to revenues.

AlSagri also stated that the new centers that opened throughout the year in various regions of the Kingdom broadened the reach of the company's network, a step that strongly assisted in driving growth in all business segments and the membership base in its various categories.

The total number of operating centers and studios affiliated with the company reached 187 centers by the end of 2023.

The number of members in all segments hit record numbers that are seen to be the highest in the company’s history, as the number of male subscribers reached 306,000 by the end of Q4 2023, compared to 260,000 in Q4 2022, while female subscribers reached 90,000 from 68,000 a year earlier, AlSagri added.

By the end of December 2023, Leejam’s loan balance stood at SAR 303 million as the company accelerated its capital investments to expand into more branches to achieve its goals.

Regarding the corporate services segment, AlSagri said that it includes the establishment of private gyms inside commercial office headquarters and residential complexes. Many projects have been signed with several major establishments, including government agencies, companies, and real estate developers, by the end of 2023.

This segment has a total of 13 sports centers (not included in the number of operating centers).

Concerning the opening of the PhysioTherabia center, he said that there are 12 branches of PhysioTherabia in more than four Saudi cities within the medical insurance network, indicating that it is still in its early stages and has no significant impact on the financial results for 2023.

AlSagri highlighted Leejam’s commitment to supporting PhysioTherabia to achieve its goal of becoming the largest chain of physical therapy and recovery in the Kingdom.

According to the data available on Argaam, Leejam Sports Co.’s profits rose 40% year-on-year (YoY) to SAR 356 million by the end of 2023, from SAR 255 million a year earlier. Q4 net profit surged to SAR 129 million.