On 2026-07-28 08:13:24 (Saudi Time), Leejam Sports Company announced its Interim financial results for the six months ended on June 30, 2026.

Year-on-Year Performance Drivers

For the six-month period ended 30 June 2026, Leejam Sports Company's revenues grew 4.838% YoY to SAR 780 million (H1 2025: SAR 744 million), driven primarily by a 5% increase in subscription and membership revenues supported by network expansion — with 23 net new centers added over the preceding twelve months — and higher rental income, partially offset by a 4% decline in personal training revenues. Net profit attributable to shareholders declined 21.678% YoY to SAR 112 million (H1 2025: SAR 143 million), mainly due to a 2.3% contraction in gross profit margin (to 33.2% from 35.5%) as newly opened centers weigh on margins during their maturation phase, a non-recurring gain of SAR 11.5 million recognized in H1 2025 from the reversal of previously recognized impairment of non-financial assets that was not repeated in H1 2026, a 29% increase in finance costs driven by higher average borrowings and increased lease liabilities from the expanded center network, and an 8% rise in general, administrative and selling expenses. These headwinds were partially offset by the 5% revenue growth, the absence of associate losses (H1 2025: SAR 4.6 million), and higher profit from short-term Murabaha of SAR 1.3 million (H1 2025: SAR 0.1 million).

Quarter-on-Quarter Performance Drivers

QoQ revenue rose 11.382% to SAR 411 million in Q2 2026, driven by higher subscription and membership revenues (+10%) and personal training revenues (+18%), as member activity recovered from the seasonal impact of Ramadan and Eid in Q1 2026, supplemented by contributions from newly opened centers. Net profit surged 28.571% QoQ to SAR 63 million, primarily attributable to the growth in revenues and gross profit, with gross profit climbing 19.491% QoQ to SAR 141 million.

Other Items

The external auditor issued an unmodified conclusion with no additional comments. Comparison items have been reclassified, as discontinued operations are presented separately and excluded from reported figures; refer to note 5 in the financial statements for details. Total shareholders' equity (after deducting minority equity) stood at SAR 1,121 million as of 30 June 2026, down 11.523% from SAR 1,267 million in the same period of the prior year. Earnings per share for H1 2026 were SAR 2.23 (H1 2025: SAR 2.76), calculated based on a weighted average of 50,538,955 shares (H1 2025: 52,253,327 shares). EBITDA remained broadly stable at SAR 348 million in H1 2026 (H1 2025: SAR 349 million), representing an EBITDA margin of 45% (H1 2025: 47%). Free cash flow reached approximately SAR 195 million in H1 2026 (H1 2025: SAR 69 million), 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). After excluding all non-recurring items, adjusted net profit for H1 2026 was SAR 110 million (H1 2025: SAR 127 million), a decline of 13%. Active membership grew 8% YoY to 522,820 members as at 30 June 2026, and the total network reached 247 centers. The Group noted that the upcoming IFRS 18 standard (effective 1 January 2027) is not expected to affect profit, earnings per share, or total equity, but will impact presentation of the income statement, disclosure requirements for management-defined performance measures, and the starting point of the cash flow statement under the indirect method; the Group's assessment remains ongoing.

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