Samsung SDS Q3 Operating Profit 193 Billion Won... Cloud Sales Reach Record High

Logistics Sales Decline Offset by Cloud Performance

Samsung SDS announced its preliminary results for the third quarter on the 26th, reporting sales of 3.2081 trillion KRW and an operating profit of 193 billion KRW. Compared to the same period last year, sales decreased by 23.6%, but operating profit increased by 4.3%.

Samsung SDS CI [Image source=Samsung SDS]

The IT services division recorded sales of 1.5093 trillion KRW, an increase of 1.5% compared to the same period last year.

Cloud business sales grew by 57.3% year-on-year, achieving a quarterly record high sales of 470.7 billion KRW. For the first time, the IT services segment surpassed 30% of total quarterly sales.

Within the cloud business, sales from the Samsung Cloud Platform (SCP)-based Cloud Service Provider (CSP) business grew 49% year-on-year, driven by increased High-Performance Computing (HPC) services and new cloud network sales.

Cloud Management Service (MSP) business sales increased by 91% year-on-year, supported by cloud transition and construction projects in the financial sector and application modernization in the aviation sector.

Sales in the logistics division declined by 37.3% year-on-year to 1.6988 trillion KRW due to a drop in international freight rates and a slowdown in the global economy.

On the other hand, the digital logistics platform Cello Square, evolving beyond simple logistics execution to become a key part of intelligent supply chain management, recorded sales of 151.1 billion KRW. This represents a 139% growth compared to the same period last year. The number of Cello Square platform subscribers surpassed 9,600 companies, driven by the platform’s global expansion in China, Southeast Asia, the United States, and Europe.

In September, Samsung SDS announced its cloud-based ‘Enterprise Gen AI Service’ at the ‘REAL Summit 2023.’ Through the platform 'FabriX,' which accelerates the integration of generative AI into cloud systems, and the solution 'Brity Copilot,' which automates intellectual tasks, enterprises can enhance work productivity.

Samsung SDS is currently testing FabriX-based Gen AI services on internal systems to secure various business cases. Through this, the company plans to actively promote its enterprise Gen AI service business.

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