Samsung SDS Announces 2nd Quarter Financial Report
+ 5.4% revenue and 14.9% operating profit growth on a quarter-on-quarter basis
+ 7.5% revenue and 24% operating profit decrease compared to previous year
+ Plans to secure new opportunities and expand business through external customers in the second half of the year based on IT strategic businesses including next-generation system integration, intelligent manufacturing and cloud migration/deployment
On July 24, Samsung SDS announced that it recorded revenue of KRW 2.57 trillion and the operating profit of KRW 196.7 billion in the second-quarter of 2020.
Due to the business delays caused by the COVID-19, both revenue and operating profit decreased 7.5% and 24% YoY, respectively.
However, Samsung SDS recorded growth in revenue by 5.4% and operating profit by 14.9% when compared to the first quarter of this year. In particular, business revenue generated from external business with non-Samsung customers rose 12.4% and revenue from IT strategic businesses including cloud, intelligent factory, AI & Analytics and solution increased 6% QoQ.
IT Service business sales grew 2.7% QoQ with revenue of KRW 1.32 trillion by securing new external customers in various sectors, which is a 15.9% decrease compared to the previous year.
Logistics Business Process Outsourcing (BPO) business recorded revenue of KRW 1.25 trillion due to increased air freight volumes and external businesses, marking growth of 8.4% QoQ and 3.3% YoY.
Despite difficult management environment, Samsung SDS is expecting IT investment to gradually improve in the second half of the year. The company plans to secure new opportunities in IT strategic businesses including next-generation system integration, intelligent manufacturing, and cloud migration/deployment. Samsung SDS will also expand business with the non-Samsung customers in the second half of the year.
Moreover, Logistics Unit will respond proactively to the expected increase in customers’ logistics volume in the remaining year and actively seek business with the new customers.