South Korea’s Samsung SDS Co., an IT and technical service providing company, posted a record quarterly revenue in the July-September period, due to strong contribution from its fledgling logistics business and recovery of IT servicing.

The company announced in a regulatory filing on Tuesday that its operating profit for the third quarter ended September reached 219.8 billion won ($195.2 million), up 11.8 percent from the previous quarter and 6.4 percent from a year ago.

Sales gained 15.6 percent on quarter and 11.7 percent on year to a quarterly best of 2.97 trillion won.

Shares of Samsung SDS fell 0.55 percent to close Tuesday at 181,500 won.

The company generated 1.63 trillion won worth sales from the logistics business in the July-September period, up 31 percent from the previous quarter, on the back of the increased shipments of its manufacturing affiliates. The revenue of the logistics business surpassed that of the IT service business for the first time.

The IT service unit posted 1.33 trillion won in sales, up 1.1 percent from the second quarter. The growth was driven by companies that resumed their investments in IT sector after holding back spending at the height of the Covid-19 pandemic.

“Companies are expected to ramp up investments in the fourth quarter for digital transformation to prepare for the post-Covid-19 industry,” the company said, adding that it will strengthen high-performing cloud service for AI and R&D, manufacturing automation and data analytics to help businesses accelerate digital transformation.

For the logistics sector, the company plans to expand shipments for high-tech products, components and e-commerce goods, and enter new businesses including blockchain-based distribution record management service.

By Choi Mira

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