Samsung SDS cruises in Q2 on solid cloud business

The Samsung SDS data center in Hwaseong, Gyeonggi Province / Courtesy of Samsung SDS

Samsung SDS on Thursday said it posted 3.51 trillion won ($2.57 billion) in sales and 230.2 billion won in operating profit for the second quarter of this year, both growing 4.2 percent from a year earlier on solid growth in its cloud business.

According to the company, revenue from its IT service division grew 5.8 percent year-on-year to reach 1.68 trillion won, while its cloud division revenue soared 20 percent during the same period, standing at 665.2 billion won.

Its cloud service provider business grew 26 percent year-on-year, driven by increased demand for high-performance computing services, expansion of cloud network services and the full-scale rollout of its public cloud operations.

The company’s managed service provider business, which handles cloud system migration and operations, posted a 20 percent year-on-year growth. This growth was due to new generative artificial intelligence contracts and the global expansion of its supply chain management and customer relationship management services.

The revenue from its digital logistics platform Cello Square stood at 270.1 billion won, with the number of member customers growing 48 percent year-on-year to surpass 21,900 companies.

Looking ahead, Samsung SDS said it will continue efforts to strengthen competitiveness and secure growth opportunities amid protracted economic uncertainties.

“Samsung SDS plans to expand its cloud and generative artificial intelligence service businesses out of Samsung Group, focusing on the financial and public sectors,” the company said in a press statement.

“For its digital logistics business, Samsung SDS will actively pursue new external contracts while strengthening strategic partnerships with carriers such as shipping lines and airlines.”