Seoul: Samsung SDS Co., the IT service arm of Samsung Group, announced on Thursday that its net profit for the second quarter experienced a 7.6 percent decline compared to the previous year, primarily due to one-off costs. The company's net profit for the three months ending in June decreased to 176 billion won (US$128.2 million) from 190 billion won in the same period the previous year, as stated in a regulatory filing.
According to Yonhap News Agency, Samsung SDS attributed the net profit decline to unspecified one-off costs. Despite the drop in net profit, the company reported a 4.2 percent increase in operating profit, reaching 230.2 billion won during the second quarter. Additionally, sales also rose by 4.2 percent, climbing to 3.51 trillion won from 3.37 trillion won in the same period last year.
The company credited its robust cloud services division for bolstering the quarterly results. "Demand for our high-performance computing and cloud network services increased from both government agencies and corporate clients in the second quarter," a company spokesperson noted.
For the January-June period, Samsung SDS's net income decreased by 3.4 percent on-year, amounting to 393.6 billion won, down from 407.4 billion won in the previous year.