Samsung SDS Reports Operating Profit of 808.2 Billion KRW Last Year, Down 11.8% Year-on-Year

Logistics Sector Slump Weighs Down... Cloud Business Shows Growth

Samsung SDS announced on the 25th that its operating profit last year was 808.2 billion KRW, a decrease of 11.8% compared to the previous year. Last year's revenue was 13.2768 trillion KRW, down 23%. This was due to poor performance in the logistics business caused by the global economic downturn.

In the fourth quarter of last year, revenue was 3.3771 trillion KRW, and operating profit was 214.5 billion KRW. While revenue decreased by 20.5% compared to the same period last year, operating profit increased by 14.4%.

By business sector, the IT services business recorded annual revenue of 6.1058 trillion KRW, growing 2.3% year-on-year. This was driven by the transition and expansion of cloud business in manufacturing, finance, and public sectors, as well as the establishment of next-generation enterprise resource planning (ERP) and manufacturing execution systems (MES).

In particular, the cloud business achieved annual revenue of 1.8807 trillion KRW, a 61.8% increase compared to the previous year. The cloud service provider (CSP) business based on the Samsung Cloud Platform (SCP) and the cloud operation and management (MSP) business focused on application modernization both showed balanced growth.

The logistics sector's revenue recorded 7.171 trillion KRW, down 36.4% due to the impact of the global economic downturn. However, the digital logistics platform Cello Square's revenue in the fourth quarter was 241 billion KRW, a 152% increase compared to the same period last year. The number of Cello Square platform subscribers surpassed 11,100 companies, expanding globally to China, Southeast Asia, the United States, and Europe.

Samsung SDS plans to introduce the platform 'FabriX,' which accelerates the integration of generative AI into cloud systems, and the solution 'Brity Copilot,' which automates intellectual tasks, to the market.

Meanwhile, Samsung SDS decided on a dividend of 2,700 KRW per share through a board resolution. This follows the dividend policy to maintain a payout ratio of around 30% for the three years from 2022 to 2024.