Monday May 18, 2026
Monday May 18, 2026
Monday, 18 May 2026 00:28 - - {{hitsCtrl.values.hits}}
Dialog Axiata PLC Group has in the first quarter of FY26 delivered revenue growth of 9% year-on-year (YoY) on the back of strong performances in mobile, fixed, and digital pay television businesses as Group revenue reached Rs. 47.3 billion, despite the continued strategic scaling down of the low-margin international wholesale business.
On a quarter-on-quarter (QoQ) basis, revenue increased by 2% supported by data revenue growth and advertising revenue generated by the television business.
Group Earnings Before Interest, Tax, Depreciation and Amortisation (EBITDA) was recorded at Rs. 24.3 billion, up 23% YoY supported by revenue performance and cost rescaling initiatives.
The EBITDA margin expanded by 5.8 percentage points (pp) YoY to reach 51.3%. On a QoQ basis, Group EBITDA grew 5%.
Group Net Profit After Tax (NPAT) was recorded at Rs. 9.2 billion for 1Q 2026, up +>100% YoY and 56% QoQ, supported by robust EBITDA growth, lower net finance costs, and lower forex losses.
Reflecting strong operational performance, the Group recorded Operating Free Cash Flow (OFCF) of Rs. 14.6 billion for 1Q 2026, up 8% YoY.
The Board of Directors of Dialog Axiata PLC approved an interim dividend for 1Q 2026, after considering the financial performance of the Group and taking into account the forward investment requirements, at a meeting held on 14 May. The approved first interim dividend for FY26 amounts to Rs. 0.70 per share and would translate to an Annualised Dividend Yield of 9.2% based on the share closing price for 1Q 2026.
At an entity level, Dialog Axiata PLC continued to be the primary contributor to Group revenue (76%) and Group EBITDA (75%).
Supported by YoY growth in the data segment and effective cost-rescaling initiatives, company-level revenue for 1Q 2026 increased by 12% YoY to Rs. 36 billion, while EBITDA rose 29% YoY to Rs. 18.2 billion. On a QoQ basis, company revenue grew by 4%, while EBITDA grew by 7% QoQ, primarily attributable to the flow-through impact of revenue growth and reduction in direct costs.
Furthermore, NPAT for 1Q 2026 was recorded at Rs. 7.6 billion, up +>100% YoY. On a QoQ basis, company-level NPAT grew 83% QoQ.
Dialog Television maintained its leadership in the Pay-TV sector with a subscriber base of over 1.6 million as at end-March 2026. In 1Q 2026, revenue grew 28% YoY and 25% QoQ to reach Rs. 4 billion, reflecting the growth in advertising revenue. Dialog TV (DTV) EBITDA was up 74% YoY to Rs. 0.8 billion, supported primarily by advertising revenue. On the back of strong revenue growth and cost initiatives, DTV recorded break-even NPAT for the quarter.
Dialog Broadband Networks featuring the Group’s fixed telecommunications, broadband, and international businesses recorded revenue of Rs. 8.8 billion for 1Q 2026, down 3% YoY due to the conscious scaling down of the low-margin international wholesale business. EBITDA grew 6% YoY to Rs. 5.3 billion for the quarter, with the EBITDA margin expanding to 60%, up 5pp YoY. NPAT was recorded at Rs. 1.8 billion, up 10% YoY, albeit down 6% QoQ.
Dialog Group remained a key contributor to State revenue, remitting a total of Rs. 16 billion to the Government of Sri Lanka in 1Q 2026. This comprised Rs. 5.1 billion in direct taxes and levies and Rs. 10.9 billion in indirect taxes collected on behalf of the Government. On a YoY basis, total taxes paid increased by 8%, with direct taxes up 13% YoY and indirect taxes up 6% YoY.
The Group capital expenditure for the quarter ended 31 March 2026 amounted to Rs. 5.5 billion, resulting in a Capex-to-Revenue ratio of 12%. Capital expenditure was primarily incurred towards rapidly expanding the 5G infrastructure beyond 1,000 live sites, reinforcing market leadership, accelerating customer adoption, and positioning Dialog to capture growing data demand and future digital revenue opportunities.
