KIPCO 2003 half year profit increases 45 percent to KD 8 million

The half-year rise - underpinned by a second quarter surge in net profit by 86.4% to KD 5,611,678 (US$ 18.7 million), compared to KD 3,010,143 (US$ 10 million) in the second quarter of 2002 - reflects substantial and consistent growth among the group's diversified financial and telecommunications investment holdings.

KIPCO's total revenues in the first six months of 2003 were KD 28,364,735 (US$ 94.5 million), up 17.8% from KD 24,080,142 (US$ 80.2 million) in the same period last year, with second quarter revenues at KD 15,706,880 (US$52.3 million), a rise of 9.3% against KD 14,372,772 (US$47.9 million) in the second quarter of 2002.

Total assets were KD 603, 972, 272 (US$ 2 billion) at the end of June 2003, an increase of 4.2% since KD 579,170,495 (US$1. 9 billion) in December 2002, and up 9% compared to KD 553,656,970 (US$ 1.8 billion) in the first six months of 2002.

Shareholders' equity in the first six months of 2003 stood at KD 146,979,751 (US$ 489.5 million), up 5% since KD 140,023,041 (US$466.3 million) in December 2002, and a rise of 8% compared to KD 136,150,129 (US$ 453.4 million) in the first half of last year.

"These strong half year results demonstrate significant growth and profitability supported by a solid foundation of sound, diversified interests," said KIPCO managing director and chief executive officer Faisal Hamad Al-Ayyar. "They represent both the achievements made by our KIPCO group companies, and also the continued confidence and trust shown by the markets in the management of these companies.

"In addition, the results provide us with a renewed commitment to continue growing our business through a proven strategy of maintaining tight financial controls, regional expansion and investment in technology," he said.

KIPCO, originally founded in 1975, is one of the premier investment holding companies in the Middle East and a major regional force in financial services, and media and technology with investments and activities throughout the Arab world and beyond. Headquartered in Kuwait, the KIPCO group includes United Gulf Bank, Gulf Insurance Company, Burgan Bank and KAMCO in the financial sector, and United Broadcasting Co. (Showtime), Wataniya Telecom, ShowNet and United Cable Company in media and technology. KIPCO also has substantial interests in real estate through United Real Estate Company and in the industrial sector with United Industries Company, Saudi Dairy and Foodstuffs Company (SADAFCO) and United Fisheries of Kuwait.