Samsung SDS Q1 Operating Profit Up 16.2%... Rapid Growth of Digital Logistics Platform

Samsung SDS announced on the 25th that its operating profit for the first quarter of this year was preliminarily estimated at 225.9 billion KRW, a 16.2% increase compared to the same period last year. Revenue recorded 3.2473 trillion KRW, a 4.5% decrease.

Revenue from the IT services sector was 1.5536 trillion KRW, up 5.7% compared to the same period last year. Cloud business revenue grew 29% year-on-year to 530.8 billion KRW. Among the cloud business, Samsung Cloud Platform (SCP)-based CSP business revenue increased 44% year-on-year due to ▲growth in High-Performance Computing (HPC) services ▲provision of subscription-based Graphics Processing Unit (GPU) services (GPUaaS).

Additionally, cloud management services (MSP) business revenue increased 23% year-on-year due to increased sales from cloud transition and construction projects in the public and financial sectors, as well as next-generation SCM business based on cloud.

In the logistics business sector, revenue was 1.6937 trillion KRW, down 12% year-on-year due to the decline in global freight rates and reduced cargo volume. Digital logistics platform Cello Square recorded revenue of 255 billion KRW, a sharp increase of 381% compared to the same period last year. Furthermore, with the global expansion of the Cello Square platform, the number of subscribed customers surpassed 12,200.

Meanwhile, Samsung SDS plans to actively promote enterprise generative AI service business through Fabrics, a generative artificial intelligence (AI) service platform, and Brity Copilot, which utilizes generative AI in work collaboration solutions such as mail, meetings, and messenger.