Samsung SDS Reports Q1 Operating Profit of 171.2 Billion KRW, Down 13% Year-on-Year

Decrease in IT Service Business Revenue Due to COVID-19 Impact and Business Disruptions

[Asia Economy Reporter Jin-gyu Lee] Samsung SDS's first-quarter performance faltered due to the impact of the novel coronavirus disease (COVID-19).

On the 23rd, Samsung SDS announced its preliminary results, reporting first-quarter sales of 2.4361 trillion KRW and operating profit of 171.2 billion KRW. Compared to the same period last year, sales decreased by 2.7% and operating profit fell by 13.7%.

By business sector, IT services sales were recorded at 1.2857 trillion KRW, down 10% year-on-year due to disruptions and delays in business execution caused by COVID-19. Logistics BPO business sales increased by 7% year-on-year to 1.1504 trillion KRW, driven by acquiring new customers and expanding service areas for existing clients.

Meanwhile, although a challenging business environment is expected in the second quarter as well, Samsung SDS plans to proactively respond to customer demands for hybrid cloud services and high-performance, high-efficiency cloud services amid the expanding cloud service market.

Additionally, the company intends to continuously expand its solution business to promote untact work, including collaboration solutions that provide virtual office environments such as video conferencing, file sharing, and messaging, AI-based work automation, and intelligent contact centers.

This content was produced with the assistance of AI translation services.