Samsung SDS (018260) Q3 2024 earnings summary

Executive summary

• Q3 2024 revenue reached ₩10,185.9 billion, up 2.9% year-over-year, driven by growth in IT services and stable logistics performance.

• 3Q24 revenue also reported as 3,570 billion KRW, up 11.3% year-over-year and 6.0% sequentially.

• Operating profit for the first nine months was ₩699.6 billion, with Q3 operating profit up 31.0% year-over-year to 253 billion KRW and margin improving to 7.1%.

• Net income for the first nine months was ₩593.2 billion; Q3 net income increased 5.2% year-over-year to 186 billion KRW.

• IT services accounted for 46.8% of sales, logistics for 53.2%, with Samsung affiliates representing 67.6% of total sales.

Financial highlights

• Gross profit for 3Q24 was 516 billion KRW, up 16.7% year-over-year; gross margin at 14.5%.

• Gross margin for the period was 14.8%.

• EBITDA for 3Q24 was 355 billion KRW, with a margin of 9.9%.

• SG&A expenses rose 5.7% year-over-year but declined 5.6% sequentially.

• Cash and equivalents at period end: ₩1,314.4 billion; 3Q24 cash and equivalents also reported as 5,364 billion KRW.

Outlook and guidance

• The company expects continued growth in cloud and AI-driven IT services, with logistics expansion in global markets.

• Ongoing investments in data centers and digital logistics platforms to support future demand.

• Market conditions remain favorable for IT and logistics, with global IT services and logistics markets projected to grow at 10% and 4.9% CAGR, respectively, through 2028.

• Forward-looking statements indicate expectations for continued business and financial performance, but acknowledge uncertainties that may impact actual results.