Kingdom Holding profit falls as dividend income halves

Earnings of Saudi Arabia’s Kingdom Holding Company (KHC), majority owned by Prince Alwaleed bin Talal, fell sharply in the first quarter of 2026 following a drop in dividend income and higher operating costs of assets, particularly hotels.

Net profit dropped 38 percent to SAR269 million ($72 million) in the quarter ended March 2026, compared to SAR432 million a year ago, the company said in a statement to the Saudi stock exchange.

Revenue also took a hit, falling 23 percent year-on-year to SAR573 million, largely due to a decline in dividend income despite higher hotel operating income.

Dividend income fell 53 percent annually to SAR182 million during the quarter. Hotels and other operating costs rose 11 percent year-on-year to SAR269 million.

“We remain confident in our long-term strategy and are well-positioned to navigate the current environment,” said KHC chief executive Talal Ibrahim Almaiman.

In March, the KHC board recommended a dividend payout of more than SAR1 billion for 2025, subject to shareholder approval.

Last week, Saudi Arabia’s Public Investment Fund (PIF) agreed to sell a 70 percent stake in Saudi Pro League football club Al Hilal to Kingdom Holding for SAR840 million, implying an enterprise value of SAR1.4 billion.

Prince Alwaleed, the founder and CEO of KHC, owns 78.13 percent of the company, while the PIF holds 16.86 percent, according to data available on the Saudi bourse.

KHC shares closed 0.8 percent lower at SAR10.62 on the Saudi stock exchange on Thursday. The shares are up almost 33 percent year to date.

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