RIYADH: Strong demand for personal training services and continued expansion in its membership base drove Armah Sports Co.’s net proft to shareholders up 62 percent to SR62 million ($16.53 million) in 2025.
Revenue increased rising 27 percent annually to SR224.9 million in the year ending Dec. 31, while while operating revenue climbed 48 percent to SR81.1 million, reflecting operating leverage as revenue growth outpaced cost increases.
Personal training profit increased 51 percent during the year, supported by sustained demand for high-quality training services.
Subscription and membership revenue grew 24 percent, driven by expansion in the average member base and the increasing maturity of existing clubs. The company also recorded growth in ancillary revenue streams from its fitness centers.
Industry data suggests the company’s performance reflects broader structural growth in the Kingdom’s fitness sector.
Ahmed Attallah, manager at the organizers of health and fitness exhibition FIBO Arabia, told Arab News: “Saudi Arabia’s fitness industry is undergoing structural expansion rather than cyclical growth.”
He added: “The market has grown from approximately SR3.4 billion in 2017 to SR7.7 billion in 2024 and is projected to reach SR15.5 billion by 2030. This growth is supported by regulatory reform, rising female participation, and sustained private-sector investment aligned with Vision 2030.”
FIBO Arabia is one of the largest annual health, fitness and wellness industry exhibitions in Riyadh that brings together operators, suppliers, investors and other sector stakeholders to showcase innovations and business opportunities.
Attallah added that revenue growth across operators is increasingly driven by premium services.
“Personal training and premium services remain underdeveloped compared to mature markets, creating room for further revenue growth. At the same time, boutique formats and digitally integrated models are attracting younger, experience-driven consumers,” he said.
Attallah stated that strong financial results from leading operators reflect underlying market fundamentals, and said: “Capital inflows, international brand expansion, and fitness infrastructure embedded within gigaprojects and mixed-use developments point to long-term confidence in the sector.”
He added: “Saudi Arabia is moving from rapid expansion to institutional maturity, positioning it as the Middle East’s leading growth market for fitness and wellness investment.”
Ivan Shapochkin, partner in the sports and entertainment practice at Oliver Wyman for India, the Middle East and Africa, told Arab News that the outlook for the sector in the Kingdom is underpinned by a structural demand gap.
“Gym penetration was 7 percent in 2024, with forecasts exceeding 10 percent by 2030. Demand is reinforced by rising activity levels, with 60 percent of adults meeting the 150 minutes per week benchmark, suggesting many physically active consumers are not yet gym members,” he said.
Shapochkin added that macroeconomic targets and regional participation trends indicate further headroom for expansion.
“At a macro level, sports contribution to GDP is targeted to rise toward 1.5 percent by 2030 versus 1.8 percent globally, while Middle East regional participation remains 30 percent versus a 38 percent global average as per our latest research, highlighting significant headroom for consumer fitness growth,” Shapochkin added.
Ivan Shapochkin, partner in the sports and entertainment practice at Oliver Wyman for India, the Middle East and Africa. Supplied
Shapochkin said global private equity activity also signals institutional confidence in the sector.
“Globally, over $1 billion PE-backed gym deals, like TSG’s acquisition of EoS Fitness, underscore institutional confidence and suggest similar capital could accelerate consolidation in the Kingdom,” he added.
Deferred revenue at Armah rose to SR62.6 million across the year, reflecting strong membership renewals and enhancing revenue visibility for future periods.
Cost of revenue increased 22 percent in line with higher activity levels, while operating expenses rose 46 percent, reflecting investments in automation and key senior hires to support future expansion. Interest expenses were linked to financing and lease liabilities associated with the company’s growth strategy.
During the year, Armah recorded non-recurring items including a SR9.5 million gain from a sublease transaction, a SR0.8 million gain from a rent waiver on a lease, and SR1.5 million in expenses related to preparations for transitioning to the Kingdom’s Main Market from Nomu.
Excluding non-recurring items, adjusted net income attributable to shareholders reached SR53.2 million, while adjusted earnings before interest, taxes, depreciation and amortization totaled SR115 million, in line with the reconciliation disclosed in the audited financial statements.
Armah has advanced its expansion and market positioning over the past year, announcing plans in January for a new men’s B_FIT club in Riyadh’s Irqah district. In 2025, it signed agreements for additional clubs in Al Maseef and a SR224 million development deal with Qimam Noshoz.
