Saudi's Kingdom Holding Co posts 76% Q3 revenue hike
Third-quarter profit in 2017 amounted to $66m, an improvement over a loss of $94.7m in Q3 2016, it has been revealed
Hotel revenues have played a significant role in boosting the Q3 2017 performance of Saudi Arabia's Kingdom Holding Company.
Third-quarter profit in 2017 amounted to $66m (SAR247.5m), an improvement over a loss of $94.7m (SAR355m) in Q3 2016.
The diversified conglomerate, which holds interests in luxury hotel management, real estate, petrochemicals, media and publishing, entertainment, finance, technology, healthcare, and aviation, is developing the 1km Jeddah Tower, touted to become the world's tallest building upon completion.
Revenues for Q3 2017 amount to $146.7m (SAR550m), a 76% hike over Q3 2016 revenues, worth $83.5m (SAR313m).
Meanwhile, the firm's revenues for the first nine months (9M) of 2017 amounted to $466.7m (SAR1.75bn), 23.6% higher than corresponding 2016 revenues, valued at $373.4m (SAR1.4bn).
In a statement to the Saudi bourse, Kingdom Holding Company said its earning per share amounts to SAR0.16 in 9M 2017, compared to loss per share worth SAR0.09 in 9M 2016.
Formerly known as Kingdom Tower, Jeddah Tower is likely to be completed by 2019.
HRH Prince Alwaleed Bin Talal Bin Abdulaziz Alsaud, chairman of Kingdom Holding Company, announced on 2 August, 2011, that the project's construction contract had been signed.
The project would be developed as part of Kingdom City by the Jeddah Economic Company (JEC), a part of Kingdom Holding Company.
At the time, Jeddah Tower was promoted as the centrepiece and the first phase of Kingdom City, JEC's planned urban development spanning more than 530ha in Jeddah.
With a total construction area of more than 50ha, the Jeddah Tower was planned as a a mixed-use building featuring a hotel and serviced apartments, both branded by Four Seasons, in addition to office space, luxury condominiums, and an observatory.
The overall construction cost of the tower at the time was estimated at $1.2bn (SAR4.6bn), and Kingdom City was anticipated to cost $20bn (SAR75bn).
This June, the conglomerate announced it had purchased a 7.11% share in ride-sharing app, Careem.
Worth $62m (SAR232.5m), the deal was completed through Kingdom Holding Company's available cash flow, and was considered an extension of the company's strategic investments in technology.
In December 2015, Kingdom Holding Company revealed it would exchange its stake in Fairmont Hotels for $338.6m (SAR1.27bn) in a swap deal with AccorHotels.
The deal would also include other assets and a stake in the French hotel chain.