Samsung SDS said on the 22nd that last year's annual revenue rose 0.7% from a year earlier to 13.9299 trillion won. Operating profit last year increased 5% to 957.1 billion won.
In the fourth quarter, revenue fell 2.9% on-year to 3.5368 trillion won, while operating profit rose 6.9% to 226.1 billion won.
IT services and the cloud business drove revenue growth last year. Annual revenue in the IT services institutional sector was 6.5435 trillion won, up 2.2%, and cloud business revenue grew 15.4% to 2.6802 trillion won.
Within the cloud business, the cloud infrastructure (CSP) business saw revenue increase thanks to higher usage of graphics processing unit (GPU) virtualization (GPUaaS), expansion of high-performance computing (HPC) services, and growth in cloud network services, the company said.
In the cloud operations and management (MSP) business, the financial industry's cloud transition, orders for Generative AI services in the public sector, and expansion of solution-based businesses such as enterprise resource planning (ERP) and supply chain management (SCM) drove revenue growth.
By contrast, the logistics institutional sector was weak as declines in ocean freight rates continued. Annual revenue was 7.3864 trillion won and operating profit was 130 billion won, down 0.5% and 6.2%, respectively.
Samsung SDS's digital logistics platform "Cello Square" increased its subscriber customers by 27% in one year. As of the end of last year, 24,625 companies were using the service.
Samsung SDS said it will continue to expand its AI and cloud businesses and strengthen competitiveness based on its "AI full stack" capabilities that encompass AI infrastructure, platforms, and solutions. In AI infrastructure, it plans to launch GPUaaS offerings based on the latest Nvidia B300 in step with rising demand for GPUs and data centers, and pursue data center design, build, and operate (DBO) projects, which have high business scalability.
It will also focus on building public disaster recovery (DR) projects based on the Daegu Center and offer industry-specific services to boost the competitiveness of Samsung Cloud Platform (SCP).
In the AI platform area, based on the ChatGPT Enterprise reseller partnership signed with OpenAI in Dec. as the first domestic company, it plans to support corporations' adoption and spread of Generative AI across various industries.
In AI solutions, it plans to continue expanding the collaboration solution Brity Works and the Generative AI service Brity Copilot—being provided since Nov. through a pilot to three agencies, the Ministry of the Interior and Safety (MOIS), the Ministry of Science and ICT, and the Ministery of Food and Drug Safety—to 57 central government ministries.
In the logistics business, it will further strengthen air cargo and contract logistics, and apply AI-based automation technologies to operations and warehouse management.
Meanwhile, to enhance shareholder value and expand shareholder returns, Samsung SDS, by board resolution, raised its dividend by 10% to 3,190 won per share. A company official said, "With this dividend increase, we have met the high-dividend corporations requirement."