Dialog Axiata PLC revealed its consolidated financial results for the first half of 2026 on Friday, August 14, 2026. These results encompass the performance of Dialog Axiata PLC (the “Company”) and the Dialog Axiata Group (the “Group”).
Group Financial Performance
The Group achieved a revenue increase of 9% year-to-date (YTD), reaching Rs 95.5 billion for the first half of 2026, driven by robust performances across its Mobile, Fixed, and Digital Pay Television sectors. On a quarter-on-quarter (QoQ) basis, revenue saw a 2% rise, bolstered by growth in Data Revenue and Home Broadband, totaling Rs 48.2 billion in Q2 2026. Furthermore, the Group’s Earnings Before Interest, Tax, Depreciation, and Amortization (EBITDA) stood at Rs 50 billion, reflecting a 23% YTD increase, with an EBITDA margin of 52.3%, up by 6 percentage points year-on-year (YoY). For Q2 2026, EBITDA increased by 6%, reaching Rs 25.7 billion.
Net Profit After Tax (NPAT) for the Group was reported at Rs 19.3 billion for the first half of the year, exceeding a 100% increase YoY. This growth is attributed to strong EBITDA performance, decreased net finance costs, and foreign exchange gains resulting from effective forward contract management against USD liabilities. On a QoQ basis, NPAT rose by 10% to Rs 10.1 billion for Q2 2026. Excluding foreign exchange gains, the underlying NPAT for Q2 2026 was Rs 9.6 billion, marking a 4% QoQ and 76% YoY increase, while the underlying NPAT for the first half was Rs 18.8 billion, up 91% YoY. The Group’s Operating Free Cash Flow (OFCF) was noted at Rs 18.4 billion for the first half of 2026.
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Commitment to Shareholder Value
Following a comprehensive assessment of the Group’s financial outcomes and future investment needs, the Board of Directors approved a second interim dividend of Rs 0.70 per share for FY 2026 during their meeting on August 14, 2026. This brings the total dividend distribution for the year to Rs 1.40 per share, translating into an annualized dividend yield of 6.1%, based on the closing share price for Q2 2026, demonstrating Dialog’s ongoing commitment to providing sustainable returns to its shareholders while supporting long-term growth initiatives.
Company and Subsidiary Contributions
At the individual entity level, Dialog Axiata PLC remained the primary driver of the Group’s revenue (77%) and EBITDA (75%). Fueled by year-over-year growth in the Data segment and effective cost management, the Company’s revenue increased by 11% YTD to Rs 73.3 billion, while EBITDA grew by 27% YTD to Rs 37.3 billion. On a QoQ basis, revenue and EBITDA rose by 3% and 4%, respectively, due to the positive impacts of revenue growth and cost optimizations. NPAT for the first half of 2026 was Rs 15.8 billion, showing over a 100% YoY increase, with a QoQ rise of 8% to Rs 8.2 billion.
Dialog Television (DTV) maintained its leadership position in the Pay-TV market, serving over 1.6 million subscribers as of June 2026. The revenue for DTV increased by 17% YoY to Rs 7.5 billion in the first half of 2026, largely driven by advertising revenue growth. This increase in revenue translated into a significant EBITDA growth of 54% YTD, reaching Rs 1.8 billion. Consequently, DTV recorded a NPAT of Rs 0.4 billion for the first half of 2026.
Dialog Broadband Networks (DBN), which encompasses the Group’s Fixed Telecommunications, Broadband, and International Businesses, reported a revenue of Rs 17.9 billion for the first half of 2026, reflecting a 3% YTD growth, attributed to increases in broadband and data revenues, despite a significant decline in revenues from the low-margin international hubbing business. DBN’s EBITDA grew by 12% YTD, reaching Rs 10.8 billion for the first half, while maintaining an EBITDA margin of 60%, up 5 percentage points YoY. The NPAT for DBN was Rs 4.1 billion, representing a 41% YTD increase, driven by lower depreciation and net finance costs along with foreign exchange gains.
Contribution to National Development
The Dialog Group continued to play a significant role in contributing to national revenue, remitting a total of Rs 30.9 billion to the Government of Sri Lanka (GoSL) during the first half of 2026. This amount included Rs 8.1 billion in direct taxes and Rs 22.8 billion in indirect taxes collected on behalf of the GoSL. Compared to the previous year, total taxes paid rose by 9%, with direct taxes increasing by 14% YoY and indirect taxes by 7% YoY.
Investment in Digital Infrastructure
In the first half of 2026, the Group’s capital expenditure was Rs 18.5 billion, resulting in a Capex to revenue ratio of 19%. These investments were primarily focused on accelerating the rollout of next-generation 5G infrastructure, expanding network coverage to over 1,000 active sites. This investment aims to enhance customer adoption of advanced technologies, bolster the Group’s capacity to meet the surging demand for data, and position the Group favorably for future digital growth opportunities.
Launch of Dialog Air Fibre
In the recent quarter, Dialog introduced Dialog Air Fibre, the first 5G-powered ultra-fast Wi-Fi solution in Sri Lanka, which further cements its position in the broadband sector. Leveraging Dialog’s advanced 5G network, Air Fibre provides high-speed, low-latency connectivity without the need for fixed-line infrastructure, offering a compelling alternative to traditional fibre broadband. The launch of Air Fibre expands Dialog’s market reach and enhances its broadband offerings, catering to the increasing demand for next-generation digital connectivity solutions.
Introduction of Dialog Pay
The Company also announced the launch of Dialog Pay, an integrated platform within the MyDialog App that unifies connectivity, payments, and financial services. In alignment with the Government of Sri Lanka’s LankaQR Payment Promotion Programme, Dialog Pay is designed to promote digital payment adoption and enhance financial inclusion by providing convenient, secure, and accessible financial services through Dialog’s digital ecosystem.
