Kingdom Holding Company (KHC), chaired by Prince Alwaleed bin Talal, reported on Tuesday that its consolidated net income for the first quarter of 2008 increased by 5 percent when compared to the results for the first quarter of 2007. The results when compared to the fourth quarter of 2007 were in excess of SR 47 million or approximately a 19 percent increase. Consolidated revenues for the first quarter were impacted by a slight reduction in hotel revenue due to the sale of one of the hotels together with the reduction in dividend income from Citigroup. These reductions were offset by an increase in income from associates and the gain from the sale of hotel. Income from OPERATIONS for the first quarter of 2008 decreased by SR32 million when compared to same quarter 2007 as a result of the additional depreciation and amortization expense. The effect of reduced borrowing cost (due to reduced rates) during 2008 resulted in a net increase of Income before minority interests of consolidated subsidiaries. Earnings per share for the first quarter of 2008, based on the 6.3 billion shares outstanding equaled SR.048 per share as compared to SR.046 for the 2007 quarter respectively. The company gains from their hotel operations through their majority-owned subsidiaries which include Kingdom Hotel Investments, and its hotel management subsidiary, Fairmont Raffles Hotels continue to remain strong. During the fourth quarter of 2007, Fairmont was successful in selling certain of its non-strategic hotel assets and accordingly reduced its debt and generated cash which was distributed to KHC and the minority shareholder of Fairmont. The company's other 45 percent owned management company, Four Seasons, realized increased profits resulting from management fees due to improved occupancy and revenue per occupied room. KHC also pursues its development plans for their landmark project in Jeddah. __
