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.

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

• Operating profit grew 7.1% year-over-year to KRW 221B, with a margin of 6.6%.

Financial highlights

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

• SG&A expenses increased 17.5% year-over-year to KRW 279B.

• Non-operating gain & loss was KRW 43B, up 31.8% year-over-year but down 43.5% sequentially.

• Profit before income tax rose 10.4% year-over-year to KRW 264B.

Segment performance

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

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

• SI revenue declined 7.3% year-over-year to KRW 268B; ITO revenue fell 1.9% to KRW 763B.

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

• Air/Ocean transport revenue rose 6.2% year-over-year to KRW 878B; Cello Square revenue jumped 151% to KRW 285B.