Dialog Maintains Growth Momentum in Q3 2026, Contributes Rs 45.1Bn to Government in Taxes and Invests Rs 27.4Bn in Digital Infrastructure

Revenue: Rs 144.1Bn, up 8% YTD, 1% QoQ and 6% YoY
EBITDA: Rs 75.8Bn, up 20% YTD, 1% QoQ and 15% YoY, EBITDA Margin of 52.7%, up 5.4pp YTD
Underlying NPAT: Rs 28.9Bn, up 82% YTD, 6% QoQ and 67% YoY
Taxes Paid to GoSL: Rs 45.1Bn (Rs 10.9Bn in Direct, Rs 34.2Bn Indirect)
Investment in Digital Infrastructure: Rs 27.4Bn; Operating Free Cash Flow (OFCF): Rs 30.5Bn
Third Interim Dividend: Rs 0.70 per share; YTD DPS of Rs. 2.10; Annualized Dividend Yield of 6.2%

Dialog Axiata PLC announced its consolidated financial results for the nine months ended 30 September 2026 on Tuesday, 10 November 2026. Financial results included those of Dialog Axiata PLC (the “Company”) and of the Dialog Axiata Group (the “Group”).

Group Performance

The Group delivered revenue growth of 8% Year-to-Date (“YTD”) underpinned by robust performance across the Mobile, Fixed and Digital Pay Television businesses, with Group Revenue reaching Rs 144.1Bn for the first nine months of 2026. On a Quarter-on-Quarter (“QoQ”) and Year-on-Year (“YoY”) basis, Group Revenue grew 1% and 6% respectively to Rs 48.5Bn in Q3 2026, supported by growth in Data and Home Broadband revenues.

The Group Earnings Before Interest, Tax, Depreciation and Amortisation (“EBITDA”) grew 20% YTD to Rs 75.8Bn, 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 Q3 2026, Group EBITDA was recorded at Rs 25.9Bn, up 1% QoQ and 15% YoY.

Group Net Profit After Tax (“NPAT”) grew 92% YTD to Rs 28.5Bn for the first nine months of 2026, supported by strong EBITDA growth and lower net finance cost. Q3 2026 NPAT reached Rs 9.2Bn, representing a 62% YoY increase despite declining 9% QoQ. Excluding unrealized forex losses, underlying NPAT increased to Rs 10.2Bn 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 28.9Bn, recording 82% YTD growth.

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

Sustainable Returns – Third Interim Dividend of 70 cents per Share

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 Rs 0.70 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 annualized dividend yield of 6.2%, based on the Company’s closing share price for Q3 2026. The dividend reflects Dialog’s continued commitment to delivering sustainable shareholder returns while supporting long-term growth investments.

Significant Contribution to Revenue Collection and National Development

Dialog Group remained a key contributor to state revenue, remitting a total of Rs 45.1Bn to the Government of Sri Lanka (GoSL) YTD 2026. This comprised Rs 10.9Bn in Direct Taxes and Levies and Rs 34.2Bn 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%.

Sustained Investment in Digital Infrastructure and 5G Network Expansion

The Group capital expenditure for the first nine months of 2026 amounted to Rs 27.4Bn, 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.

Company and Subsidiary Performance

At an entity level, Dialog Axiata PLC (the “Company”) 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 110.9Bn, while EBITDA increased 20% YTD to Rs 56.0Bn 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 22.2Bn, while Q3 2026 NPAT increased 41% YoY to Rs 6.4Bn, primarily due to lower net finance cost, partly offset by unrealized forex losses. Excluding the unrealized forex impact, NPAT grew 83% YTD to Rs 22.9Bn, while Q3 2026 NPAT increased 50% YoY to Rs 7.2Bn.

Dialog Television (“DTV”) maintained its leadership in the Pay-TV sector with a subscriber base of over 1.6Mn as at end-September 2026. YTD revenue grew 13% to reach Rs 11.0Bn, reflecting strong growth in advertising revenue. The top line growth translated to strong EBITDA performance of 57% YTD to reach Rs 3.1Bn for the first nine months of 2026. Accordingly, DTV recorded a YTD NPAT of Rs 0.4Bn.

Dialog Broadband Networks (“DBN”) featuring the Group’s Fixed Telecommunications, Broadband and International Businesses recorded YTD Revenue of Rs 27.3Bn, reflecting a growth of 6% YTD, driven by Fixed Broadband Revenue. DBN’s EBITDA grew 16% YTD to reach Rs 16.5Bn 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 6.1Bn for the first nine months of 2026, up 46% YTD driven by EBITDA growth, lower depreciation and net finance cost.