Samsung SDS Reports 2020 Financial Results
On January 28, Samsung SDS announced that it recorded revenue of KRW 3.465 trillion and operating profit of KRW 283.8 billion in the fourth quarter of 2020. Revenue and operating profit increased by 2.6% and 29.1%, respectively, compared to the third quarter.
In terms of business performance, IT services business recorded revenue of KRW 1.3743 trillion, which is 3% QoQ increase derived from business expansion in cloud conversion, next-generation enterprise resource planning (ERP) implementation and increased adoption of work automation and collaboration solutions.
Logistics Business Process Outsourcing (BPO) recorded revenue of KRW 1.6723 trillion, which is 2.4% growth compared to the previous quarter based on increased air and sea freight rates and increased volume of goods during the end-of-the-year season.
As a result, Samsung SDS recorded annual revenue of KRW 11.174 trillion, 2.8% YoY increase, and the operating profit of KRW 871.6 billion, 12% YoY decrease, in 2020.
Despite uncertainty in business environment, IT investment of many companies and entities are expected to recover in preparation for post COVID-19 while digital transformation trend is anticipated to accelerate further.
Samsung SDS plans to grow its IT services business focusing on digital transformation assessment and consulting, implementation and operation of next-generation management systems such as ERP and SCM, cloud conversion, smart factory development, next-generation endpoint security, and work automation and collaboration solutions.
In the logistics sector, the company will expand business in high-tech, parts, retail and e-commerce industry and will further deploy its blockchain-based platform business for supply chain traceability.