Kingdom Holding, the investment firm owned by Saudi billionaire Prince Alwaleed bin Talal, reported a 85.8 percent slump in fourth-quarter net profit on Thursday, weighed by lower income and higher provisioning.
Net profit fell to 37.91 million riyals ($10.1 million) for the three months to Dec. 31 from 266 million riyals a year earlier, it said in a bourse statement.
The investment firm attributed the result to impairment provisions and falls in dividend income, as well as lower revenue and operating income from its hotels business.
These factors offset an increase in income from associates and joint ventures, as well as lower general and administrative expenses and financing costs.
It did not elaborate. Saudi companies issue brief earnings statements early in the reporting period before publishing detailed results later.
On Dec. 10, Kingdom said it would exchange its stake in FRHI Holdings for 1.27 billion riyals in a swap deal with AccorHotels also including other assets and a stake in the French hotel chain.
The transaction came as part of the deal which would see AccorHotels buy the parent firm of the Fairmont, Raffles and Swissotel chains in a cash-and-share deal worth $2.9 billion that will raise the U.S. profile of Europe's largest hotel company.
Kingdom in November divested its entire stake in Saudi Research and Marketing Group, publisher of pan-Arab newspaper Asharq al-Awsat and one of the Middle East's largest media companies, for 837.2 million riyals..For all the latest banking and finance news from the UAE and Gulf countries, follow us on Twitter and Linkedin, like us on Facebook and subscribe to our YouTube page, which is updated daily.
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