Dialog Axiata PLC, for the six months ended 30 June, as a group, delivered notable results across its mobile, fixed line, digital pay television, and tele-infrastructure businesses, achieving 6% year-to-date (y-t-d) revenue growth to Rs. 87.4 b in 1H25.

This was despite the strategic scaling down of low-margin international wholesale business, amounting to approximately Rs. 10 b.

On a quarter-on-quarter (q-o-q) basis, revenue increased 2% to Rs. 44.1 b, driven primarily by data revenue expansion. Core revenue for the period reached Rs. 84.2 b, up 21% y-t-d.

Group earnings before interest, tax, depreciation and amortisation (EBITDA) recorded a growth of 50% y-t-d to Rs. 40.5 b in 1H25, with q-o-q EBITDA rising 5% to Rs. 20.8 b.

The strong performance reflects both revenue growth and operational efficiencies. The EBITDA margin improved by 13.5 percentage points compared to the first half of 2024, reaching 46.3%, surpassing pre-crisis margin.

Group net profit after tax (NPAT) was recorded at Rs. 9.2 b in 1H25, more than doubling y-t-d.

Quarter-on-quarter NPAT grew by 23% to Rs. 5.1 b, supported by improved EBITDA and lower finance costs. In line with improved operational performance, operating free cash flow (OFCF) improved by 78% y-t-d to Rs. 22.1 b.

At the entity level, Dialog Axiata PLC continued to account for a substantial share of group performance, contributing 75% of group revenue and 73% of group EBITDA.

Company revenue reached Rs. 66 b for 1H25 and Rs. 33.7 b for 2Q25, up 28% y-t-d and 5% q-o-q, driven by growth in data and voice segments.

Profitability improved significantly, with company EBITDA rising to Rs. 29.4 b for 1H25 and Rs. 15.3 b for 2Q25, up 68% y-t-d and 8% q-o-q.

Supported by this EBITDA performance, company NPAT was recorded at Rs. 6.9 b for 1H25 and Rs. 4 b for 2Q25, reflecting strong growth over the corresponding periods.

Dialog Television (DTV) consolidated its leadership position in the digital pay television market, maintaining a subscriber base of over 1.6 million as of end 1H25.

DTV revenue reached Rs. 6.4 b for 1H25 and Rs. 3.3 b for 2Q25, up 5% y-t-d and 5% q-o-q. Growth was supported by higher subscription and advertising revenues.

DTV EBITDA grew 24% y-t-d to Rs. 1.2 b for 1H25; however, NPAT was recorded at a negative Rs. 479 m for the period.

Dialog Broadband Networks (DBN), encompassing the group’s fixed telecommunications, broadband, and international businesses, posted revenue of Rs. 17.4 b for 1H25 and Rs. 8.4 b for 2Q25, down 38% y-t-d and 8% q-o-q.

This decline was primarily due to the scaling down of low-margin international wholesale operations. Nevertheless, DBN EBITDA increased 20% y-t-d to Rs. 9.6 b in 1H25, driven by growth in broadband business.

NPAT recorded a growth of 67% y-t-d to Rs. 2.8 b.

Moreover, Dialog Group remained a major contributor to national revenue, remitting Rs. 28.4 b to the Government of Sri Lanka (GoSL) in 1H25. This comprised Rs. 7.2 b in direct taxes and levies, and Rs. 21.2 b in consumption taxes collected on behalf of the GoSL.

The group continued to invest in broadband and ICT infrastructure to ensure seamless customer experience and maintain market leadership. Capital expenditure on digital infrastructure increased by 43% y-t-d to Rs. 11.1 b in 1H25.

Dialog Axiata is keenly awaiting the issuance of 5G spectrum for commercial services, which will enable further upgrades to Sri Lanka’s broadband infrastructure and enhance the nation’s digital connectivity.