May, 15, 2026
Dialog Axiata PLC announced its consolidated financial results for the quarter ended 31 March 2026 on Friday 15 May 2026. Financial results included those of Dialog Axiata PLC (the “Company”) and of the Dialog Axiata Group (the “Group”).
The Group delivered revenue growth of 9% Year on Year (“YoY”) on the back of strong performances 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-onQuarter (“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 24.3Bn, 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 9.2Bn 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, after considering the financial performance of the Group and taking into account the forward investment requirements, at the meeting held on 14th May 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 YoY growth in the Data segment and effective cost-rescaling initiatives, Company revenue for Q1 2026 increased 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 grew 83% QoQ.
Dialog Television (“DTV”) maintained its leadership in the Pay-TV sector with a subscriber base of over 1.6Mn as at end March 2026. In Q1 2026, revenue grew 28% YoY and 25% QoQ to reach 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 Rs 8.8Bn for Q1 2026 down 3% YoY due to the conscious scaling down of low-margin international wholesale business. DBN’s EBITDA grew 6% YoY to Rs 5.3Bn for the quarter, with EBITDA margin expanding to 60%, up 5pp YoY. NPAT was recorded at Rs 1.8Bn, up 10% YoY, albeit down 6% QoQ.
Dialog Group remained a key contributor to state revenue, remitting a total of Rs 16.0Bn to the Government of Sri Lanka (GoSL) in Q1 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 2026 amounted to Rs 5.5Bn, resulting in a Capex to Revenue ratio of 12%. Capital expenditure was primarily incurred towards rapidly expanding the 5G infrastructure beyond 1,000 live sites, reinforcing market leadership, accelerating customer adoption, and positioning the Dialog to capture growing data demand and future digital revenue opportunities.
In Q1 2026, Dialog was recognized as the 2026 SLIM Kantar People’s Awards ‘Service Brand of the Year’ for the 5th time and ‘Telecommunication Brand of the Year’ for the 15th consecutive year. Voted by Sri Lankans through a nationwide consumer survey, the recognition reflects the continued preference for Dialog’s services and the trust placed in the brand across the country. These accolades also recognize the company’s continued market leadership, brand excellence, and unwavering commitment to delivering superior service experiences.
