Samsung SDS (018260) Q3 2024 earnings summary

Executive summary

• Q3 2024 revenue reached 3,570 billion KRW, up 11.3% year-over-year and 6.0% sequentially.

• Operating profit rose 31.0% year-over-year to 253 billion KRW, with margin improving to 7.1%.

• Net income increased 5.2% year-over-year to 186 billion KRW, though down 2.5% sequentially.

Financial highlights

• Cloud business revenue grew 35% year-over-year to 637 billion KRW.

• Cello Square revenue surged 112% year-over-year to 320.3 billion KRW.

• IT Services revenue grew 8.0% year-over-year to 1,630 billion KRW.

• Logistics revenue reached 1,940 billion KRW, up 14.2% year-over-year.

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

Outlook and guidance

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

• Plans to expand logistics business with tailored strategies for ocean, air, and ground sectors.

• Focus on hyper-automation and generative AI services to maintain competitive edge.