Leejam Sports Co. · TADAWUL:1830
Leejam Sports — Q3 2024 Earnings Presentation
27 slides from Leejam Sports's earnings presentation, Nov 1, 2024
Slide 1: Earnings Presentation Q3/9M 2024
Earnings Presentation Q3/9M 2024
Slide 2: Disclaimer
DISCLAIMER All information included in this document is for general use only and has not been independently verified, nor does it constitute or form part of any invitation or inducement to engage in any investment activity, nor does it constitute an offer or invitation or recommendation to buy or su
Slide 3: Executive Summary
Executive Summary
Slide 4: Executive summary
Executive summary Led by its Core, Leejam achieved constant growth in revenue, GP, EBITDA & NP, with membership reaching the 2025 target by end of Q3 SAR SAR SAR SAR SAR SAR SAR SAR 1,092 M 406 M 450 M 174 M 328 M 129 M 545 M 202 M 686.3 xxx 595.5 458.9 xxx xxx 9M 1,325 Q3 9M Q3 xxx 9M Q3 9M Q3 Q4 2
Slide 5: Leejam grew its network, with a focus on members retention & satisfaction
Executive summary Leejam grew its network, with a focus on members retention & satisfaction Trailing Twelve Months Q3 2024 30 31% 12% 14% Additional Centers & YOY Increase Ave. Monthly Member YOY Increase on Total Studios in PT Session Growth Visits 24 8% (9)% 1% Refurbished centers YOY Increase YOY
Slide 6: Leejam operates in an underpenetrated market, with great growth potential
Executive summary Leejam operates in an underpenetrated market, with great growth potential 509 K 393 K 116 K +91 K Members Male Female Scheduled GX Classes 243 K PT sessions +804 K GX Attendance 66 Total Refurbished Center +11 M Total Visits KSA 211 UAE 199 12 Centers & Studios Centers & Studios Le
Slide 7: Network Expansion & Members Trend
Network Expansion & Members Trend
Slide 8: Network and Memberships continue its growth with record numbers
Network Expansion & Members Trend Network and Memberships continue its growth with record numbers … Member Count Leejam’s Centers & Studios Movement Membership numbers grew significantly in Q3 2024 vs Q3 2023 Concept Studio & Academies Fitness Time driven by additional operation center and higher re
Slide 9: Q3/9M 2024 Financial results
Q3/9M 2024 Financial results
Slide 10: Leejam continued to deliver lucrative margins in Q3 2024 despite pressure from expansion
Q3/9M 2024 Financial results Leejam continued to deliver lucrative margins in Q3 2024 despite pressure from expansion Revenue Gross Profit Gross Profit Margin • Revenue grew by 17% driven by the increase in numbers of members and Revenue centers. 406 8% 17% 173 Margins 160 • Gross margin decrease wa
Slide 11: With record revenue in 9M, Leejam continued to deliver lucrative margins
Q3/9M 2024 Financial results With record revenue in 9M, Leejam continued to deliver lucrative margins Revenue • Revenue grew by double-digits, driven by growth from the membership and subscription revenue, led by the increase in number of members and centers. Margins Revenue Gross Profit Gross Profi
Slide 12: Fitness Time, the Core, margins under slight pressure
Q3/9M 2024 F in a n c ia l re s u lt s Fitness Time, the Core, margins are under slight pressure due to 30 centers during the last twelve moths which is still under ramp up Q3 9M Gross Profit Gross Profit Margin Gross Profit Gross Profit Margin 15% 16% 1,071 14% 398 444 8% 346 171 925 391 159 46% 43
Slide 13: Revenue per center level is maintained despite the increase in the weight of Xpress
Q3/9M 2024 F in a n c ia l re s u lt s Revenue per center level is maintained despite the increase in the weight of Xpress centers, With the net profit per centers is under short-term pressure 25% of centers are still under ramp up Average Revenue per center Increase in Fitness Time Revenue per cent
Slide 14: CoR increased as Leejam continues opening new centers (Q3)
Q3/9M 2024 Financial results CoR increased as Leejam continue its opening of new centers, investment in quality of services and refurbishment program continues COR COR Per Center COR & COR/Center 232 • An increase of 23% in overall cost of revenue compared to 188 Q3 2023 mainly due to the increase i
Slide 15: CoR increased as Leejam continues opening new centers (9M)
Q3/9M 2024 Financial results CoR increased as Leejam continue its opening of new centers, investment in quality of services and refurbishment program continues COR COR Per Center COR & COR/Center 644 • An increase of 21% in overall cost of revenue compared to 534 9M 2023 mainly due to the increase i
Slide 16: Strong financial position, solid returns, and acceptable leverage level
Q3/9M 2024 Financial results Deferred revenue Strong financial position, solid returns, and acceptable leverage level 38% 563 409 • The increase in deferred revenue of 38% came as result of the company successful sale during Q3 campaigns along with focus efforts and the consistent growth in membersh
Slide 17: Strong cash generation with accelerated investment on expansion
Q3/9M 2024 F in a n c ia l re s u lt s Strong cash generation with accelerated investment on expansion Cash Flows 9M 2024 691 37 -295 -113 385 277 -170 -40 Free Cash Flow = 395 Operating CF, Net Loan Borrowings. Net &… Dividend paid Cash at End Cash as of Beginning CapEx & Other Payments of leases F
Slide 18: Strong deferred revenue balance by end Sep-24
Q3/9M 2024 F in a n c ia l re s u lt s Strong Deferred revenue balance by end Sep-24 of which 57% will be recognized in Q4 2024 Lease Payments Deferred Revenue Amortization SAR Million SAR Million 12 Deferred Revenue Amortization 11 SAR Million 0.772 0.729 101 319 92 0.768 0.696 9M 2023 9M 2024 9M 2
Slide 19: Segment performance
Segment performance
Slide 20: Fitness Time female segment showed strong growth (Q3)
Segment performance For Fitness Time, Female segment showed strong growth both in revenue and member/center while male segment still the dominate Male Segment • Male segments continue to be the dominant segment and ending of Q3 2024 with 13% revenue growth. • The segment Revenue/center and GP per ce
Slide 21: Fitness Time female segment showed strong growth (9M)
Segment performance For Fitness Time, Female segment showed strong growth both in revenue and member/center while male segment still the dominate Male Segment • Male segments continue to be the dominant segment and ending of Q3 2024 with 14% revenue growth, with Member/center increasing by 7% during
Slide 22: Outlook
Outlook
Slide 23: Tentative Guidance Projects Pipeline as of Q3 2024
Outlook Tentative Guidance Projects Pipeline as of Q3 2024 2024 growth will be driven by: • Further growing LFL and & Non LFL Centers • Improving customer experience, member retention & services 43 • Further openings of Xpress & Big Box centers • Continuing focus/growth on Corporate wellness & PT bu
Slide 24: Q&A
Q&A For enquires, please contact the Investor Relations Department at: investor.relations@leejam.com.sa
Slide 25: Appendix
Appendix
Slide 26: 9M 2024 P&L and Q3 2024 P&L
Appendix Q3 2024 P&L 9M 2024 P&L SAR 9M 2024 9M 2023 SAR Q3 2024 Q3 2023 Revenue 1,092,959,793 926,958,086 Revenue 405,740,047 348,214,831 Cost of revenue -643,923,610 -534,120,914 Cost of revenue -232,403,191 -188,274,074 GROSS PROFIT 449,036,183 392,837,172 GROSS PROFIT 173,336,856 159,940,757 Gen
Slide 27: Thank You
— Ee LEGA Thank You