Dialog maintains growth momentum in 3Q

Dialog Axiata PLC yesterday said it posted a group revenue of Rs. 144 billion for the first nine-months of 2026, representing a year-to-date (YTD) growth of 8% underpinned by robust performance across the mobile, fixed and digital pay television businesses.

On a quarter-on-quarter (QoQ) and year-on-year (YoY) basis, group revenue grew 1% and 6% respectively to Rs. 48.5 billion in 3Q 2026, supported by growth in data and home broadband revenues. 

Group Earnings Before Interest, Tax, Depreciation and Amortisation (EBITDA) grew 20% YTD to Rs. 75.8 billion, supported by strong revenue growth and continued operational efficiencies. The Group EBITDA margin expanded by 5.4 percentage points (pp) compared to the first nine months of 2025, supported by continued efficiency gains. For 3Q 2026, group EBITDA was recorded at Rs. 25.9 billion, up 1% QoQ and 15% YoY. 

Group Net Profit After Tax (NPAT) grew 92% YTD to Rs. 28.5 billion for the first nine months of 2026, supported by strong EBITDA growth and lower net finance cost. 3Q 2026 NPAT reached Rs. 9.2 billion, representing a 62% YoY increase despite declining 9% QoQ. Excluding unrealised forex losses, underlying NPAT increased to Rs. 10.2 billion for the quarter, growing 6% QoQ and 67% YoY and demonstrating continued strength in underlying earnings. On the same basis, NPAT for the first nine months of 2026 reached Rs. 28.9 billion, recording 82% YTD growth. 

Supported by strong operational performance, the group recorded Operating Free Cash Flow (OFCF) of Rs. 30.5 billion for the first nine months of 2026. 

Following a review of the group’s financial performance and future investment requirements, the Board of Directors of Dialog Axiata PLC approved a third interim dividend of 70 cents per share for FY 2026 at its meeting held on 10 November 2026. This brings the YTD dividend distribution to Rs. 2.10 per share and represents an annualised dividend yield of 6.2%, based on the company’s closing share price for 3Q 2026. The dividend reflects Dialog’s continued commitment to delivering sustainable shareholder returns while supporting long-term growth investments. 

Dialog Group remained a key contributor to State revenue, remitting a total of Rs. 45.1 billion to the Government of Sri Lanka (GoSL) YTD 2026. This comprised Rs. 10.9 billion in direct taxes and levies and Rs. 34.2 billion in indirect taxes collected on behalf of the GoSL. On a YTD basis, total taxes paid increased by 8%, with direct taxes up 17% and indirect taxes up 5%. 

Group capital expenditure for the first nine months of 2026 amounted to Rs. 27.4 billion, resulting in a capex-to-revenue ratio of 19%. Investments were primarily directed towards the accelerated rollout of next generation infrastructure with more than 220 new sites added during the period expanding the overall network footprint to approximately 5,700 sites nationwide, including over 1,050 live 5G sites across all 25 districts. 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. 

At an entity (company) level, Dialog Axiata PLC continued to be the primary contributor to group revenue (77%) and group EBITDA (74%). 

Underpinned by YoY growth in the data segment and continued operational efficiencies, company revenue grew 10% YTD to Rs. 110.9 billion, while EBITDA increased 20% YTD to Rs. 56 billion for the first nine months of 2026. On a YoY basis, company revenue grew 7%, while EBITDA increased 9%, reflecting flow-through gains from revenue growth and continued cost efficiencies. 

Company NPAT grew 94% YTD to Rs. 22.2 billion, while 3Q 2026 NPAT increased 41% YoY to Rs. 6.4 billion, primarily due to lower net finance cost, partly offset by unrealised forex losses. Excluding the unrealised forex impact, NPAT grew 83% YTD to Rs. 22.9 billion, while 3Q 2026 NPAT increased 50% YoY to Rs. 7.2 billion. 

Dialog Television (DTV) maintained its leadership in the Pay-TV sector with a subscriber base of over 1.6 million as at end-September 2026. YTD revenue grew 13% to reach Rs. 11 billion, reflecting strong growth in advertising revenue. The top line growth translated to strong EBITDA performance of 57% YTD to reach Rs. 3.1 billion for the first nine months of 2026. Accordingly, DTV recorded a YTD NPAT of Rs. 0.4 billion. 

Dialog Broadband Networks (DBN) featuring the group’s fixed telecommunications, broadband and international businesses recorded YTD revenue of Rs. 27.3 billion, reflecting a growth of 6% YTD, driven by fixed broadband revenue. DBN’s EBITDA grew 16% YTD to reach Rs. 16.5 billion for the first nine months of 2026, with EBITDA margin expanding to 60%, up 5.2pp compared to the first nine months of 2025. NPAT was recorded at Rs. 6.1 billion for the first nine months of 2026, up 46% YTD driven by EBITDA growth, lower depreciation and net finance cost.