Dialog delivers strong performance in 1Q

• Q1 25 Revenue recorded at Rs. 43.3 b, up 4% YoY; Core Revenue up 20% YoY
• Q1 25 EBITDA recorded at Rs. 19.7b, up 45% YoY
• EBITDA Margin reached 45.5% up 12.8pp YoY
• Q1 25 NPAT recorded at Rs. 4.1 b up 49% YoY
• Total Taxes Paid to GoSL amounted to Rs. 14.8 b which included Rs. 4.5 b in direct and Rs. 10.3 b in indirect taxes
• Capex stood at Rs. 3.7 b; Operating Free Cash Flow at Rs. 12.3 b

Dialog Axiata PLC said it has delivered a strong performance across Mobile, Fixed Line, Digital Pay Television and Tele-infrastructure businesses recording a positive revenue growth of 4% Year on Year (YoY) to reach Rs. 43.3 billion for Q1 2025. 

On a Quarter on Quarter (QoQ) basis, revenue declined by 5% owing to conscious scaling down of low margin international wholesale business amounting to Rs. 1.7 billion for Q1 2025.



 Group Core Revenue was recorded at Rs. 41.4 billion for Q1 2025, up 20% YoY albeit declining 2% QoQ due to days impact. Group Earnings Before Interest, Tax, Depreciation and Amortisation (EBITDA) recorded a growth of 45% YoY to reach Rs. 19.7 billion albeit declining 7% QoQ due to moderate decline in core revenue. 

Headline EBITDA margin improved 12.8 percentage points as compared to Q1 2024. The Group Net Profit After Tax (NPAT) was recorded at Rs. 4.1 billion for Q1 2025 up 49% YoY albeit declining 39% QoQ. Dialog Group continued to be a significant contributor to state revenues, remitting a total of Rs. 14.8 billion to the Government of Sri Lanka (GoSL) during Q1 2025. 

Total remittances included Direct Taxes and Levies amounting to Rs. 4.5 billion as well as Rs. 10.3 billion in Consumption Taxes collected on behalf of the GoSL. The Group continues to remain steadfast to meet growing demand from both retail and corporate sectors, whilst also ensuring seamless experience and leadership in Sri Lanka’s Broadband and ICT sectors. 

Dialog mobile network was recognised by third party network monitoring platforms as the leader across 5G Experience, Coverage and Overall Experience. The Capital expenditure (Capex) for Q1 2025 reached Rs. 3.7 billion representing an increase of 36% YoY. As a result of improved performance and controlled Capex, the Group recorded Operating Free Cash Flow (OFCF) of Rs. 12.3 billion for Q1 2025 up 71% YoY and >+100% QoQ.

At an entity level, the company continued to contribute a major share of Group Revenue (74%) and Group EBITDA (72%) during the quarter. Company Revenue was recorded at Rs. 32.3 billion up 26% YoY due to consolidation of Airtel Business and stable pricing in the consumer space. On a QoQ was down 1% owing to days impact. EBITDA was recorded at Rs. 14.2 billion for Q1 2025 representing a growth of 63% YoY on the back of strong revenue performance and moderation in cost increase. On a QoQ basis EBITDA declined by 21% due to higher network and manpower costs. The Company NPAT was recorded at Rs. 2.9 billion for Q1 2025, up 78% YoY albeit declining 64% QoQ. Dialog Television (DTV), continued to consolidate its leadership position in the Digital Pay Television space, maintaining a strong subscriber base of over 1.6 million as of end Q1 2025. DTV Revenue reached Rs. 3.1 billion for Q1 2025, remaining stable YoY albeit declining 6% QoQ due to slow down in subscription revenue and days impact. 

DTV EBITDA was recorded at Rs. 475 million, a growth of 3% YoY whilst declining 29% QoQ largely in line with the revenue movement. NPAT was recorded at a negative Rs. 367 million for the quarter. Dialog Broadband Networks (DBN) featuring the Group’s fixed telecommunications, broadband and international businesses recorded revenue of Rs. 9.0 billion for Q1 2025, down 38% YoY and 17% QoQ. The headline revenue decline was due to the scaling down of low margin international wholesale business. The Core Fixed Business recorded a revenue of Rs. 7.8 billion for Q1 2025, up 6% YoY and 2% QoQ. The EBITDA for DBN grew 24% YoY and 82% QoQ to record at Rs. 5.0 billion for Q1 2025, driven by decline in network and manpower costs. NPAT reached Rs. 1.6 billion for Q1 2025 increasing 72% YoY.