KHC announces rise in profits despite falling revenues
Date
5/19/2024 8:52:32 AM
(MENAFN) In the first quarter of the year, Kingdom Holding Company achieved a notable profit increase, reaching 196 million riyals (approximately 52.3 million dollars), which marks an annual growth of about 14.7 percent. This profit rise occurred despite a notable drop in revenues, which fell to around 564.4 million riyals, reflecting a 16 percent decrease compared to the same period last year.
Founded in 1979, Kingdom Holding Company attributed its profit increase to several factors. According to the company's statement, the key drivers included gains from the sale of investment properties, an increase in its share of results from equity method investments, a reduction in financial expenses, higher financing revenues, and a decrease in both withholding tax and income tax expenses.
However, the company also experienced a decline in revenues during the first quarter. This was primarily due to a reduction in dividend revenues, as well as lower hotel revenues and other operating income. The company's diverse portfolio, managed under the leadership of Prince Alwaleed bin Talal, spans various sectors, including aviation, hotels, financial services, education, healthcare, real estate, petrochemicals, transportation solutions, e-commerce, digital services, and social media.
Kingdom Holding Company, based in Riyadh, has investments in several prominent firms. Among its most notable investments are stakes in X (formerly Twitter), Citigroup, Banque Saudi Fransi, Four Seasons, Flynas, the American ride-sharing company Lyft, and Careem, which specializes in ride-sharing services. This diversified investment strategy has allowed the company to maintain profitability despite the fluctuations in its revenue streams.
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