Tuesday Aug 18, 2026
Tuesday Aug 18, 2026
Tuesday, 18 August 2026 09:46 - - {{hitsCtrl.values.hits}}
Dialog Axiata PLC yesterday said it has posted a Group Net Profit After Tax (NPAT) of Rs. 19.3 billion for the first half of 2026, increasing by over 100% year-on-year (YoY), supported by strong EBITDA growth, lower net finance costs, and foreign exchange gains, primarily arising from the timely execution of forward contracts against future USD-denominated liabilities.
On a quarter-on-quarter (QoQ) basis, Group NPAT increased 10% to Rs. 10.1 billion for 2Q 2026. Excluding the impact of foreign exchange gains, underlying NPAT for 2Q 2026 amounted to Rs. 9.6 billion, reflecting growth of 4% QoQ and 76% YoY.
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Underlying NPAT for 1H 2026 reached Rs. 18.8 billion, representing an increase of 91% YoY. Reflecting strong operational performance, the Group recorded Operating Free Cash Flow (OFCF) of Rs. 18.4 billion for 1H 2026.
Announcing its consolidated financial results for the quarter ended 30 June 2026, Dialog said the Group delivered revenue growth of 9% year-to-date (YTD) on the back of strong performances in Mobile, Fixed, and Digital Pay Television businesses as Group revenue reached Rs. 95.5 billion for 1H 2026. On a QoQ basis, revenue increased by 2% supported by Data Revenue growth and Home Broadband Revenue generation to reach Rs. 48.2 billion for 2Q 2026.
The Group Earnings Before Interest, Tax, Depreciation and Amortisation (EBITDA) was recorded at Rs. 50 billion, up 23% YTD supported by revenue performance and cost rescaling initiatives. The EBITDA margin expanded by 6 percentage points (pp) YoY to reach 52.3%. On a QoQ basis, Group EBITDA grew 6% to record Rs. 25.7 billion for 2Q 2026.
Sustainable shareholder returns
Following a review of the Group’s financial performance and future investment requirements, the Board of Directors of Dialog Axiata PLC approved a second interim dividend of 70 cents per share for FY 2026 at its meeting held on 14 August 2026. This brings the YTD dividend distribution to Rs. 1.40 per share and represents an annualised dividend yield of 6.1%, based on the company’s closing share price for 2Q 2026, reflecting Dialog’s continued commitment to delivering sustainable returns to shareholders while supporting long-term growth investments.
Company, subsidiary performance
At an entity level, Dialog Axiata PLC (company) continued to be the primary contributor to Group Revenue (77%) and Group EBITDA (75%). Supported by YoY growth in the Data segment and effective cost-rescaling initiatives, company revenue for 1H 2026 increased by 11% YTD to Rs. 73.3 billion, while EBITDA rose 27% YTD to reach Rs. 37.3 billion. On a QoQ basis, company revenue and EBITDA grew by 3% and 4% respectively, primarily attributable to the flow-through impact of revenue growth and cost optimisations. Furthermore, NPAT for 1H 2026 was recorded at Rs. 15.8 billion, up +>100% YoY. On a QoQ basis, company NPAT grew 8% QoQ to reach Rs. 8.2 billion.
Dialog Television (DTV) maintained its leadership in the Pay-TV sector with a subscriber base of over 1.6 million as at end June 2026. In 1H 2026, revenue grew 17% YoY to reach Rs. 7.5 billion, reflecting the growth in advertising revenue. The top line growth translated to strong EBITDA performance reflecting a growth of 54% YTD to reach Rs. 1.8 billion for 1H 2026. Accordingly, DTV recorded a NPAT of Rs. 400 million for the 1H 2026.
Dialog Broadband Networks (DBN) featuring the Group’s Fixed Telecommunications, Broadband, and International Businesses recorded revenue of Rs. 17.9 billion for 1H 2026, reflecting a growth of 3% YTD, driven by broadband and data revenue growth notwithstanding the substantial reduction in revenues from the low-margin international hubbing business. DBN’s EBITDA grew 12% YTD to reach Rs. 10.8 billion for 1H 2026, with EBITDA margin maintained 60%, up 5pp YoY. NPAT was recorded at Rs. 4.1 billion for 1H 2026, up 41% YTD resulting from lower depreciation and net finance cost in addition to forex gains.
Continued contribution to national development
Dialog Group remained a key contributor to state revenue, remitting a total of Rs. 30.9 billion to the Government of Sri Lanka in 1H 2026. This comprised Rs. 8.1 billion in direct taxes and levies and Rs. 22.8 billion in indirect taxes collected on behalf of the Government. On a YoY basis, total taxes paid increased by 9%, with direct taxes up 14% YoY and indirect taxes up 7% YoY.
Strengthening digital infrastructure with 5G investment
The Group capital expenditure for 1H 2026 amounted to Rs. 18.5 billon, resulting in a capex to revenue ratio of 19%. Investments were primarily directed towards the accelerated rollout of next generation 5G infrastructure, expanding the network footprint to over 1,000 live sites. The investment also supports greater customer adoption of advanced technologies, strengthens Dialog’s readiness to meet rapidly growing data demand, and positions the Group to capture future digital growth opportunities.
Advancing next-gen broadband with Dialog Air Fibre
During the quarter, Dialog launched Dialog Air Fibre, Sri Lanka’s first 5G-powered ultra-fast Wi-Fi solution, further strengthening its position in the broadband market. Built on Dialog’s advanced 5G network, Air Fibre offers a high-speed, low-latency, plug-and-play connectivity experience without the need for fixed-line infrastructure, providing a strong alternative to fibre broadband. The introduction of Air Fibre broadens Dialog’s addressable market, strengthens its broadband proposition, and supports the increasing demand for next-generation digital connectivity solutions.
Dialog Pay accelerates digital financial inclusion
The company announced the launch of Dialog Pay, an integrated platform within the MyDialog App that brings together connectivity, payments, and financial services. Aligned with the Government of Sri Lanka’s LankaQR Payment Promotion Program, Dialog Pay aims to accelerate digital payment adoption and advance financial inclusion by delivering convenient, secure, and accessible financial services through Dialog’s digital ecosystem.
