Samsung SDS reported growth in both revenue and operating profit for the second quarter of this year, driven by advancements in its cloud and logistics businesses.
On July 30, Samsung SDS announced preliminary results for the second quarter, showing revenue of 3.71 trillion won and operating profit of 231.8 billion won. This represents a 5.9% increase in revenue and a 0.7% increase in operating profit compared to the same period last year.
The IT services segment recorded revenue of 1.76 trillion won, a 5% increase year-on-year. The cloud business, which is the largest segment within IT services, saw revenue grow by 17% to 779.4 billion won compared to the same period last year.
Notably, external business revenue surged by 75% year-on-year, significantly contributing to the overall performance.
Within the cloud sector, the Cloud Service Provider (CSP) business grew by 24% year-on-year, driven by increased demand for the Samsung Cloud Platform (SCP) and the expansion of GPU as a Service (GPUaaS) offerings in public and external sectors.
The Managed Service Provider (MSP) business also saw a 17% increase year-on-year, fueled by growth in AI transformation (AX) projects in the financial sector and enterprise resource planning (ERP) initiatives in the shipbuilding industry.
The logistics segment recorded revenue of 1.96 trillion won, a 6.6% increase from the previous year. This growth was attributed to increased air forwarding and contract logistics centered on inland and warehousing, as well as the expansion of external business through Cellosquare.
Since declaring its ambition to become a global leader in AX, Samsung SDS has been enhancing its business competitiveness through a full-stack approach encompassing AI infrastructure, AX and AI services, and AI platforms/solutions.
In the AI infrastructure sector, Samsung SDS was selected as a key player in the Ministry of Science and ICT's 'GPU Acquisition, Construction, and Operation Support Project' in June, contributing to the establishment of national AI infrastructure.
Additionally, following the introduction of NVIDIA B300-based GPUaaS in March, the company launched a domestic NPUaaS product based on the Korean Purios AI Renegade in July.
In the AX and AI services sector, Samsung SDS was selected as the preferred bidder for a project to implement over 175 AI agents in Woori Bank's core operations in April, and it secured additional contracts for a generative AI system for the Export-Import Bank of Korea, expanding its AX business in the financial sector.
In the AI platform/solution area, the company is promoting AI diffusion in public and corporate sectors based on its generative AI solution, BritiWorks. It has also established partnerships with three leading global frontier AI companies: OpenAI, Anthropic, and Google Cloud.
Furthermore, Samsung SDS is increasing strategic investments in digital assets and physical AI to secure future growth drivers and uncover new business opportunities. In May, it acquired a 4% stake in Dunamu, the country's leading digital asset exchange, in collaboration with Samsung Securities and Samsung Card. A company representative stated, “We plan to actively explore new business opportunities in the digital asset infrastructure market based on this.”
In June, Samsung SDS made a strategic investment in Walden Robotics, a U.S. physical AI full-stack company, through Samsung Venture Investment.
The company aims to advance its 'robot orchestration' business, starting with Walden Robotics, and plans to expand partnerships with global robotics firms to integrate and control various robots in conjunction with manufacturing execution systems.
To respond flexibly to the surging demand for AI infrastructure, Samsung SDS will continue its investments, expanding its existing 110 megawatt (MW) AI infrastructure to 230 MW by 2029. By 2031, it aims to expand the scale of its AI infrastructure business to over 800 MW, including design, construction, and operation (DBO) projects, thereby continuously enhancing its competitiveness in AI infrastructure.
* This article has been translated by AI.
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