Dialog Axiata PLC revealed its consolidated financial results for the first quarter ending on March 31, 2026, on May 15, 2026. These results encompass both Dialog Axiata PLC and its subsidiary group.
Group Financial Highlights
The Group achieved a year-on-year revenue increase of 9%, reaching Rs 47.3 billion, driven by strong performances across its Mobile, Fixed, and Digital Pay Television sectors, despite a strategic reduction in the lower-margin international wholesale operations. In comparison to the previous quarter, revenue rose by 2%, aided by growth in data and advertising revenues from the television segment.
The Group’s Earnings Before Interest, Taxes, Depreciation, and Amortization (EBITDA) stood at Rs 24.3 billion, reflecting a 23% year-on-year rise, bolstered by robust revenue performance and cost management strategies. The EBITDA margin also improved by 5.8 percentage points to 51.3%. On a quarter-on-quarter basis, EBITDA increased by 5%.
Net Profit After Tax (NPAT) for Q1 2026 reached Rs 9.2 billion, showing a remarkable growth of over 100% year-on-year and a 56% increase from the previous quarter, supported by strong EBITDA, reduced finance costs, and lower foreign exchange losses.
Operating Free Cash Flow (OFCF) was reported at Rs 14.6 billion for the quarter, marking an 8% YoY increase.
Interim Dividend Announcement
The Board of Directors of Dialog Axiata PLC, after reviewing the Group’s financial performance and future investment needs, approved an interim dividend of Rs 0.70 per share for Q1 2026 during a meeting on May 14, 2026. This dividend provides an annualized yield of 9.2% based on the closing share price for the quarter.
Company and Subsidiary Performance
Dialog Axiata PLC, as a standalone entity, contributed significantly to the Group’s revenue (76%) and EBITDA (75%). Thanks to growth in the Data segment and effective cost management, the Company’s revenue for Q1 2026 increased by 12% year-on-year to Rs 36.0 billion, with EBITDA rising by 29% YoY to Rs 18.2 billion. On a quarter-on-quarter basis, revenue grew by 4%, and EBITDA increased by 7%, largely due to the positive impact of revenue growth and a decline in direct costs. NPAT for the quarter was Rs 7.6 billion, also reflecting an increase of over 100% YoY and an 83% rise QoQ.
Dialog Television (DTV) maintained its position as the leading player in the Pay-TV market with over 1.6 million subscribers as of March 31, 2026. DTV’s revenue surged 28% YoY and 25% QoQ to Rs 4.0 billion, benefiting from increased advertising revenue. Its EBITDA rose by 74% YoY to Rs 0.8 billion, primarily driven by advertising income, and the segment achieved break-even NPAT for the quarter.
Dialog Broadband Networks (DBN), which includes the Group’s Fixed Telecommunications, Broadband, and International businesses, reported revenue of Rs 8.8 billion for Q1 2026, a decline of 3% YoY due to the intentional scaling back of low-margin international wholesale activities. However, DBN’s EBITDA grew by 6% YoY to Rs 5.3 billion, with the EBITDA margin expanding to 60%, an increase of 5 percentage points YoY. NPAT was recorded at Rs 1.8 billion, up 10% YoY, but down 6% QoQ.
Contribution to Government Revenue
Dialog Group made a significant contribution to the state’s finances, remitting Rs 16.0 billion to the Government of Sri Lanka (GoSL) in Q1 2026. This total included Rs 5.1 billion in direct taxes and levies and Rs 10.9 billion in indirect taxes collected on behalf of the GoSL. Year-on-year, total taxes paid rose by 8%, with direct taxes increasing by 13% and indirect taxes by 6%.
Investment in 5G Infrastructure
For the quarter ending March 31, 2026, the Group’s capital expenditure amounted to Rs 5.5 billion, resulting in a Capex to Revenue ratio of 12%. This expenditure was primarily directed towards the rapid expansion of the 5G infrastructure, which now includes over 1,000 active sites, reinforcing the company’s market leadership and enhancing customer adoption to meet the rising demand for data and future digital revenue opportunities.
Awards and Recognition
In the first quarter of 2026, Dialog Axiata was honored at the SLIM Kantar People’s Awards, being named ‘Service Brand of the Year’ for the fifth consecutive time and ‘Telecommunication Brand of the Year’ for the fifteenth year in a row. This recognition, determined by a nationwide consumer survey, underscores the ongoing preference for Dialog’s services and the trust it has earned from consumers across Sri Lanka. These awards reflect the company’s sustained market leadership, brand excellence, and commitment to providing outstanding service experiences.
