Kuwaits KIPCO profits fall even as more people watch OSN at home

RIYADH: Kuwait Projects Company Holding (KIPCO) reported a 78 percent drop in net profit last year to KD6.5 million ($21.4 million).

“Our 2020 results reflect the efforts of our core companies to mitigate the impact of the global COVID-19 pandemic, Faisal Al-Ayyar, KIPCO vice chairman said in a stock exchange filing.

The pandemic affected the company’s commercial banking business, as well as its real estate, hospitality and petrochemical holdings, while its insurance business was mostly stable in 2020.

Its OSN media platform however managed to post an increase in subscribers, despite the impact on generating new sales due to the closure of retail outlets.

The pandemic accelerated the company’s digital transformation, it said.

KIPCO directors recommended a cash dividend of 5 percent (5 fils per share) subject to approval by the company’s General Assembly and regulatory authorities.

The KIPCO Group is one of the biggest holding companies in the Middle East and North Africa, with consolidated assets of $34 billion as Dec. 31 2020.

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