Leejam’s 9M net profit rises to SAR 355M; Q3 at SAR 187M

Leejam’s 9M net profit rises to SAR 355M; Q3 at SAR 187M

29/10/2024 Argaam Exclusive

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Leejam Sports Co. (Leejam) reported a net profit of SAR 355 million for the first nine months of 2024, a jump of 56.2% from SAR 227 million in the year-earlier period.



Financials (M)

Item 9m 2023 9m 2024 Change‬
Revenues 926.96 1,092.96 17.9 %
Gross Income 392.84 449.04 14.3 %
Operating Income 296.24 328.20 10.8 %
Net Income 227.32 354.56 56.0 %
Average Shares 52.38 52.38 -
EPS (Riyals) 4.34 6.77 56.0 %

The nine-month topline grew 18% year-on-year (YoY) as subscriptions and membership revenue rose 14% YoY, and paid programs revenue climbed 45% YoY.

 

The company also posted 21% increase YoY in overall cost of revenue, increased number of operating centers, in addition to higher maintenance, repair, and cleaning costs.

 

Leejam further cited higher general and administrative expenses (G&As), selling and marketing expenses (S&M), losses related to associates and higher finance costs.

 

The first nine months of 2024 further included a one-off income amounting to SAR 18 million from rent negotiations on a previously impaired centers in Ras Al Khaimah, a net impact of SAR -4.1 million due to closure of two centers in Jeddah, a one-off other income of SAR 92 million on selling three land plots in Riyadh and around SAR 7 million profit from short-term Murabaha.



Current Quarter Comparison (M)

Compared With The
Item Q3 2023 Q3 2024 Change‬
Revenues 348.21 405.74 16.5 %
Gross Income 159.94 173.34 8.4 %
Operating Income 126.48 129.18 2.1 %
Net Income 92.18 187.13 103.0 %
Average Shares 52.38 52.38 -
EPS (Riyals) 1.76 3.57 103.0 %

Q3 2024 net profit almost doubled to SAR 187 million from SAR 92 million in the prior year period, thanks to an increase in number of members and operating centers, as 30 fitness time centers were added since the end of Q3 2023.

 

Subscriptions & membership revenue also rose by 12% YoY. The company cited an increase in paid programs by 43% YoY.

 

This came despite an increase of 23% in overall cost of revenue, higher G&As and S&M expenses, and an increase in finance costs due to high interest rates.

 

Q3 also included a one-off other income of SAR 92 million from selling three land plots in Riyadh and around SAR 1 million profit from short-term Murabaha.

 

On a sequential basis, net earnings increased by more than two-fold, from SAR 73 million.

 

Total shareholders’ equity (after deducting minority equity) stood at SAR 1.25 billion by Sept. 30, 2024, compared to SAR 1.01 billion a year earlier.



Financial results (Million)

Period Revenues Change Gross Income Change Operating Income Change
Q1 2015 - - - - - -
Q2 2015 - - - - - -
Q3 2015 - - - - - -
Q4 2015 - - - - - -
Q1 2016 - - - - - -
Q2 2016 - - - - - -
Q3 2016 - - - - - -
Q4 2016 - - - - - -
Q1 2017 177.31 - 70.89 - 47.03 -
Q2 2017 176.30 - 66.21 - 43.58 -
Q3 2017 184.83 - 70.63 - 47.01 -
Q4 2017 194.44 - 70.67 - 49.07 -
Q1 2018 177.53 0.1 % 58.24 (17.8 %) 34.58 (26.5 %)
Q2 2018 186.99 6.1 % 67.20 1.5 % 43.24 (0.8 %)
Q3 2018 210.29 13.8 % 85.78 21.5 % 58.87 25.2 %
Q4 2018 225.14 15.8 % 94.11 33.2 % 55.53 13.2 %
Q1 2019 217.32 22.4 % 75.09 28.9 % 51.18 48.0 %
Q2 2019 219.03 17.1 % 81.52 21.3 % 62.90 45.5 %
Q3 2019 238.37 13.4 % 85.03 (0.9 %) 62.00 5.3 %
Q4 2019 270.21 20.0 % 118.56 26.0 % 90.64 63.2 %
Q1 2020 197.67 (9.0 %) 52.00 (30.8 %) 20.89 (59.2 %)
Q2 2020 24.36 (88.9 %) (62.66) (176.9 %) (77.81) (223.7 %)
Q3 2020 211.48 (11.3 %) 68.71 (19.2 %) 45.56 (26.5 %)
Q4 2020 229.09 (15.2 %) 81.84 (31.0 %) 55.53 (38.7 %)
Q1 2021 148.54 (24.9 %) 30.47 (41.4 %) 4.58 (78.1 %)
Q2 2021 221.87 810.9 % 88.73 241.6 % 64.11 182.4 %
Q3 2021 253.84 20.0 % 128.46 87.0 % 89.70 96.9 %
Q4 2021 261.03 13.9 % 125.38 53.2 % 101.15 82.2 %
Q1 2022 231.62 55.9 % 85.72 181.3 % 59.06 1190.8 %
Q2 2022 232.99 5.0 % 78.05 (12.0 %) 52.04 (18.8 %)
Q3 2022 264.45 4.2 % 107.18 (16.6 %) 85.46 (4.7 %)
Q4 2022 336.72 29.0 % 162.68 29.7 % 117.88 16.5 %
Q1 2023 276.97 19.6 % 108.67 26.8 % 78.02 32.1 %
Q2 2023 301.77 29.5 % 124.47 59.5 % 91.52 75.9 %
Q3 2023 348.21 31.7 % 159.94 49.2 % 126.48 48.0 %
Q4 2023 398.45 18.3 % 191.71 17.8 % 152.11 29.0 %
Q1 2024 343.54 24.0 % 139.39 28.3 % 98.68 26.5 %
Q2 2024 343.68 13.9 % 135.45 8.8 % 100.35 9.7 %
Q3 2024 405.74 16.5 % 173.34 8.4 % 129.18 2.1 %


Profit Performance (Million)

Period Net Income Change EPS(Riyal) Extraordinary Income/Expense Net Profit Before Unusual Items EPS Before XO Items
Q1 2015 - - - - - -
Q2 2015 - - - - - -
Q3 2015 - - - - - -
Q4 2015 - - - - - -
Q1 2016 - - - - - -
Q2 2016 - - - - - -
Q3 2016 - - - - - -
Q4 2016 - - - - - -
Q1 2017 42.06 - 0.80 - 42.06 0.80
Q2 2017 40.47 - 0.77 - 40.47 0.77
Q3 2017 43.18 - 0.82 - 43.18 0.82
Q4 2017 48.49 - 0.93 - 48.49 0.93
Q1 2018 32.71 (22.2 %) 0.62 - 32.71 0.62
Q2 2018 39.76 (1.8 %) 0.76 - 39.76 0.76
Q3 2018 53.76 24.5 % 1.03 - 53.76 1.03
Q4 2018 53.86 11.1 % 1.03 - 53.86 1.03
Q1 2019 39.60 21.1 % 0.76 - 39.60 0.76
Q2 2019 49.59 24.7 % 0.95 - 49.59 0.95
Q3 2019 48.81 (9.2 %) 0.93 (0.11) 48.92 0.93
Q4 2019 67.92 26.1 % 1.30 (9.07) 76.99 1.47
Q1 2020 6.25 (84.2 %) 0.12 - 6.25 0.12
Q2 2020 (91.02) (283.5 %) (1.74) (0.47) (90.55) (1.73)
Q3 2020 26.57 (45.6 %) 0.51 - 26.57 0.51
Q4 2020 (0.51) (100.8 %) (0.01) (43.11) 42.60 0.81
Q1 2021 (6.97) (211.6 %) (0.13) - (6.97) (0.13)
Q2 2021 50.89 155.9 % 0.97 - 50.89 0.97
Q3 2021 76.20 186.8 % 1.45 - 76.20 1.45
Q4 2021 85.91 16813.0 % 1.64 - 85.91 1.64
Q1 2022 46.01 759.8 % 0.88 - 46.01 0.88
Q2 2022 36.02 (29.2 %) 0.69 - 36.02 0.69
Q3 2022 68.06 (10.7 %) 1.30 - 68.06 1.30
Q4 2022 104.66 21.8 % 2.00 6.17 98.49 1.88
Q1 2023 62.63 36.1 % 1.20 - 62.63 1.20
Q2 2023 72.75 101.9 % 1.39 - 72.75 1.39
Q3 2023 92.18 35.4 % 1.76 (11.42) 103.61 1.98
Q4 2023 128.93 23.2 % 2.46 - 128.93 2.46
Q1 2024 94.22 50.4 % 1.80 13.73 80.49 1.54
Q2 2024 73.20 0.6 % 1.40 2.90 70.30 1.34
Q3 2024 187.13 103.0 % 3.57 90.60 96.54 1.84

Profitability

Period Gross Margin OIBDA Margin Net Margin Before Unusual Items
Q1 2015 - - -
Q2 2015 - - -
Q3 2015 - - -
Q4 2015 - - -
Q1 2016 - - -
Q2 2016 - - -
Q3 2016 - - -
Q4 2016 - - -
Q1 2017 - - -
Q2 2017 - - -
Q3 2017 - - -
Q4 2017 37.99 % 32.31 % 23.77 %
Q1 2018 36.25 % 34.21 % 22.49 %
Q2 2018 35.86 % 37.31 % 22.07 %
Q3 2018 36.65 % 37.99 % 22.71 %
Q4 2018 38.17 % 37.73 % 22.51 %
Q1 2019 38.37 % 40.22 % 22.27 %
Q2 2019 38.60 % 43.42 % 22.58 %
Q3 2019 37.31 % 45.58 % 21.33 %
Q4 2019 38.12 % 49.41 % 22.76 %
Q1 2020 36.43 % 47.64 % 19.64 %
Q2 2020 26.41 % 41.65 % 5.70 %
Q3 2020 25.10 % 40.24 % 2.74 %
Q4 2020 21.11 % 37.72 % (2.28 %)
Q1 2021 19.29 % 38.18 % (4.62 %)
Q2 2021 33.26 % 46.24 % 13.94 %
Q3 2021 38.61 % 49.16 % 19.07 %
Q4 2021 42.14 % 52.76 % 23.27 %
Q1 2022 44.23 % 54.42 % 26.75 %
Q2 2022 42.63 % 53.18 % 24.93 %
Q3 2022 40.03 % 52.70 % 23.84 %
Q4 2022 40.69 % 51.31 % 23.32 %
Q1 2023 41.09 % 51.24 % 23.87 %
Q2 2023 42.63 % 51.99 % 25.59 %
Q3 2023 43.98 % 52.20 % 26.71 %
Q4 2023 44.12 % 52.83 % 27.76 %
Q1 2024 44.22 % 52.51 % 27.71 %
Q2 2024 43.69 % 52.47 % 26.73 %
Q3 2024 42.91 % 51.38 % 25.23 %


Per Share Data (Riyal)

Compared With The
Period Shares Outstanding (M) EPS (Riyal) Adjusted EPS (Riyal) Book Value (BV)
Q1 2015 - - - -
Q2 2015 - - - -
Q3 2015 - - - -
Q4 2015 - - - -
Q1 2016 - - - -
Q2 2016 - - - -
Q3 2016 - - - -
Q4 2016 - - - -
Q1 2017 52.38 - - -
Q2 2017 52.38 - - -
Q3 2017 52.38 - - -
Q4 2017 52.38 3.33 3.33 12.01
Q1 2018 52.38 3.15 3.15 12.14
Q2 2018 52.38 3.13 3.13 12.56
Q3 2018 52.38 3.34 3.34 13.58
Q4 2018 52.38 3.44 3.44 13.62
Q1 2019 52.38 3.57 3.57 12.03
Q2 2019 52.38 3.76 3.76 12.56
Q3 2019 52.38 3.66 3.66 12.98
Q4 2019 52.38 3.93 4.11 13.78
Q1 2020 52.38 3.29 3.47 13.89
Q2 2020 52.38 0.61 0.79 12.14
Q3 2020 52.38 0.19 0.37 12.64
Q4 2020 52.38 (1.12) (0.29) 12.69
Q1 2021 52.38 (1.37) (0.54) 12.55
Q2 2021 52.38 1.34 2.16 13.52
Q3 2021 52.38 2.28 3.11 14.53
Q4 2021 52.38 3.93 3.93 14.95
Q1 2022 52.38 4.94 4.94 15.37
Q2 2022 52.38 4.66 4.66 15.60
Q3 2022 52.38 4.51 4.51 16.55
Q4 2022 52.38 4.86 4.75 17.46
Q1 2023 52.38 5.18 5.06 17.55
Q2 2023 52.38 5.88 5.76 18.33
Q3 2023 52.38 6.34 6.44 19.35
Q4 2023 52.38 6.81 7.02 20.79
Q1 2024 52.38 7.41 7.36 21.26
Q2 2024 52.38 7.42 7.32 21.68
Q3 2024 52.38 9.23 7.18 23.98

Multiple Ratios (End of Period Price)

Compared With The
Period P/E Adjusted P/E Price/book
Q1 2015 - - -
Q2 2015 - - -
Q3 2015 - - -
Q4 2015 - - -
Q1 2016 - - -
Q2 2016 - - -
Q3 2016 - - -
Q4 2016 - - -
Q1 2017 - - -
Q2 2017 - - -
Q3 2017 - - -
Q4 2017 - - -
Q1 2018 - - -
Q2 2018 - - -
Q3 2018 16.04 16.04 3.94
Q4 2018 17.10 17.10 4.32
Q1 2019 19.33 19.33 5.74
Q2 2019 19.96 19.96 5.97
Q3 2019 22.28 22.27 6.29
Q4 2019 20.63 19.75 5.89
Q1 2020 15.85 15.04 3.76
Q2 2020 95.89 73.65 4.82
Q3 2020 More than 100 More than 100 5.65
Q4 2020 NEG NEG 6.09
Q1 2021 NEG NEG 5.77
Q2 2021 58.24 36.04 5.75
Q3 2021 45.81 33.68 7.20
Q4 2021 27.71 27.71 7.29
Q1 2022 25.48 25.48 8.20
Q2 2022 19.20 19.20 5.74
Q3 2022 17.16 17.16 4.67
Q4 2022 17.27 17.70 4.81
Q1 2023 20.27 20.74 5.98
Q2 2023 21.93 22.38 7.04
Q3 2023 22.42 22.07 7.35
Q4 2023 29.89 28.96 9.78
Q1 2024 29.45 29.63 10.26
Q2 2024 30.47 30.88 10.42
Q3 2024 22.41 28.79 8.63

Business Segments (Million)

Compared With The
Period Male fitness center Female fitness center Other Business
Q3 2017 181.04 3.79 -
Q1 2018 159.48 18.04 -
Q2 2018 163.58 23.41 -
Q3 2018 174.66 35.63 -
Q4 2018 178.16 46.98 -
Q1 2019 166.43 50.89 -
Q2 2019 169.38 49.65 -
Q3 2019 182.93 55.44 -
Q4 2019 199.51 70.70 -
Q1 2020 145.52 52.15 -
Q2 2020 17.13 7.23 -
Q3 2020 159.40 52.08 -
Q4 2020 178.30 54.37 -
Q1 2021 112.07 36.47 -
Q2 2021 167.56 54.31 -
Q3 2021 189.23 64.61 -
Q4 2021 195.94 65.09 -
Q1 2022 175.45 56.17 -
Q2 2022 180.60 52.39 -
Q3 2022 200.12 64.33 -
Q4 2022 251.99 84.73 -
Q1 2023 208.11 68.86 -
Q2 2023 228.78 72.50 0.49
Q3 2023 261.76 84.14 2.31
Q4 2023 295.65 102.80 -
Q1 2024 248.23 87.49 7.82
Q2 2024 251.46 85.71 6.51
Q3 2024 295.52 101.56 8.66

Analysts Estimates (Million)

Item Q3 2024 (e) Q3 2024 (a) Change‬
Average 109.90 187.13 70.28 %

Estimates vs Actual (Million)

Item Q3 2024 (e) Q3 2024 (a) Change
GIB Capital 114.00 187.13 64.2 %
Hermes 114.00 187.13 64.2 %
AlJazira Capital 112.40 187.13 66.5 %
Sico 111.00 187.13 68.6 %
SNB Capital 110.00 187.13 70.1 %
U-Capital 108.90 187.13 71.8 %
Al Rajhi Capital 99.00 187.13 89.0 %

Current
Market Cap (M Riyal) 9,858.48
Enterprise Value (EV) (M) 9,836.41
Shares Outstanding ((M)) 52.38
EPS ( Riyal) (TTM) 9.23
Book Value (BV) ( Riyal) 23.98
Par Value ( Riyal) 10.00
Adjusted P/E (Last12) 26.20
P/E (TTM) 20.39
Price/book 7.85
Return on Average Assets (%) (TTM) 14.1
Return on Average Equity (%) (TTM) 42.6

Share Price

188.20
1.40 0.75 %

Leejam Sports Co. (Leejam Sports)


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