Samsung SDS (018260) Q2 2024 earnings summary

Executive summary

• 2Q24 revenue rose 2.4% year-over-year to KRW 3,369B and 3.7% sequentially from 1Q24.

• Operates in IT services and logistics, with a global presence and strong focus on cloud, AI, and digital transformation.

• Major clients include Samsung affiliates, with 72.2% of revenue from these entities in H1 2024.

• Maintains a robust credit rating (A1) and stable capital structure.

• Net income increased 11.8% year-over-year to KRW 191B but declined 12.2% sequentially.

Financial highlights

• H1 2024 revenue: ₩6,616.2 billion, down 1.1% year-over-year.

• Operating profit: ₩446.8 billion, up 10.3% year-over-year.

• Net profit: ₩407.4 billion, down 41.9% year-over-year.

• Gross profit reached KRW 500B, up 12.7% year-over-year; gross margin improved to 14.8%.

• IT services contributed 47.5% of revenue, logistics 52.5%.

Segment performance

• IT Services revenue grew 5.0% year-over-year to KRW 1,586B in 2Q24; operating margin improved to 12.5%.

• Cloud revenue surged 25% year-over-year to KRW 556B, driven by CSP and SaaS growth.

• Logistics revenue was flat year-over-year at KRW 1,783B in 2Q24; operating margin dropped to 1.3%.

• IT services: H1 2024 revenue ₩3,140 billion, operating profit ₩367.7 billion.

• Logistics: H1 2024 revenue ₩3,476 billion, operating profit ₩79.1 billion.