Samsung Q3 net profit spikes 25.6 per cent

PHOTO: Samsung Q3 net profit spikes 25.6 per cent

SEOUL - South Korea's Samsung Electronics said Friday its net profit spiked 25.6 percent in the third quarter, driven by soaring revenue from memory chip sales.

The world's largest technology firm by revenue said July-September net profit rose to 8.24 trillion won (S$9.6 billion), from 6.56 billion.

Operating profit soared 26 percent on-year to a record 10.2 billion won in the third quarter, in line with the estimates Samsung provided earlier this month.

Stagnant growth in sales of the company's flagship Galaxy S smartphones was offset by strong sales growth in the cheaper end of the smartphone market.

Driven by solid sales in the memory segment, the semiconductor business saw the biggest gains, with a 12 percent spike in revenue over the previous quarter to 9.74 trillion won.

The bulk of that came from the memory chip business which attracted revenue of 6.37 trillion won.

"Looking ahead, mobile DRAM shipments will stay strong with the release of various low- to high-end smartphones as the holiday season nears," the company said.

Third quarter operating profit in the semiconductor business more than doubled from a year ago to 2.06 trillion won.