Dialog delivers strong Q1 2026 financial performance

Revenue: Rs.47.3Bn, up 9% YoY and NPAT: Rs.9.2Bn up +)100% YoY
Taxes Paid to GoSL: Rs.16.0Bn (Rs.5.1Bn in Direct, Rs.10.9Bn Indirect)
Investment in Digital Infrastructure: Rs.5.5Bn; Operating Free Cash Flow (OFCF): Rs.14.6Bn up +8% YoY
First Interim Dividend: Rs.0.70 per share; Annualized Dividend Yield of 9.2%

Dialog Axiata PLC announced its consolidated financial results for the quarter ended 31 March 2026 onFriday 15 May 2026. Financial results included those of Dialog Axiata PLC and of the Dialog Axiata Group.

The Group delivered revenue growth of 9% Year on Year (“YoY”) on the back of strong performance in Mobile, Fixed and Digital Pay Television businesses as Group Revenue reached Rs. 47.3Bn, 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 Television Business. The Group Earnings Before Interest, Tax, Depreciation and Amortisation (“EBITDA”) was recorded at Rs 24.3 Bn, up 23% YoY supported by Revenue performance and Cost Rescaling Initiatives. EBITDA margin expanded by 5.8pp 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 Bn for Q1 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. 14.6Bn for Q1 2026, up 8% YoY. The Board of Directors of Dialog Axiata PLC approved an interim dividend for Q1 2026. The approved first interim dividend for FY 2026 amounts to Rs. 0.70 per share and would translate to an Annualized Dividend Yield of 9.2% based on share closing price for Q1 2026.

At an entity level, Dialog Axiata PLC (the “Company”) continued to be the primary contributor to Group Revenue (76%) and Group EBITDA (75%). Supported by YoYgrowthin the Data segment and effective cost-rescaling initiatives, Company revenue for Q1 2026increased by 12% YoY to Rs. 36.0Bn, while EBITDA rose 29% YoY to Rs. 18.2Bn. 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 Q1 2026 was recorded at Rs. 7.6Bn, up+)100% YoY.On a QoQ basis, Company NPAT grew83% QoQ.

Dialog Television (“DTV”) maintained its leadership in the Pay-TVsector with a subscriber base of over 1.6Mn as at endMarch 2026. In Q1 2026, revenue grew 28% YoYand 25% QoQ toreach Rs. 4.0Bn, reflecting the growth in advertising revenue. DTV EBITDA was up 74% YoY to Rs. 0.8Bn, supported primarily by the advertising revenue. On the back of strong revenue growth and cost initiatives, DTV recorded break-even NPAT for the quarter.

Dialog Broadband Networks (“DBN”) featuring the Group’s Fixed Telecommunications, Broadband and International Businesses recorded Revenue of Rs8.8Bn for Q1 2026 down 3% YoYdue to the conscious scaling down of low-margin international wholesale business. DBN’s EBITDA grew6% YoYto Rs5.3Bn for the quarter, with EBITDA margin expanding to 60%, up 5pp YoY.NPAT was recorded at Rs. 1.8Bn, up10% YoY, albeit down 6% QoQ.

Dialog Group remained a key contributor to state revenue, remitting a total of Rs16.0Bn to the Government of Sri Lanka (GoSL) inQ1 2026. This comprised Rs. 5.1Bn in Direct Taxes and Levies and Rs. 10.9Bn in Indirect Taxes collected on behalf of the GoSL. 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 31st March 2026amounted to Rs 5.5Bn, resulting in a Capex to Revenue ratio of 12%.

Source : Daily News