Dialog Axiata PLC announced its consolidated financial results for the three months ended 31 March. Financial results included those of Dialog Axiata PLC (the ‘Company’) and of the Dialog Axiata Group (the ‘Group’).
The Group delivered a strong performance across Mobile, Fixed Line, Digital Pay Television and Teleinfrastructure businesses recording a positive Revenue growth of 4% Year-on-Year (YoY) to reach Rs.43.3 billion for Q1 2025.
On a Quarter-on-Quarter (QoQ) basis Revenue declined by 5% owing to conscious scaling down of low margin international wholesale business amounting to Rs. 1.7 billion for Q1 2025. Group Core Revenue was recorded at Rs. 41.4 billion for Q1 2025, up 20% YoY albeit declining 2% QoQ due to days impact. Group Earnings Before Interest, Tax, Depreciation and Amortisation (EBITDA) recorded a growth of 45% YoY to reach Rs. 19.7 billion albeit declining 7% QoQ due to moderate decline in core Revenue. Headline EBITDA margin improved 12.8 percentage points as compared to Q1 2024.
The Group Net Profit After Tax (NPAT) was recorded at Rs. 4.1 billion for Q1 2025 up 49% YoY albeit declining 39% QoQ. Dialog Group continued to be a significant contributor to State revenues, remitting a total of Rs. 14.8 billion to the Government of Sri Lanka during Q1 2025. Total remittances included Direct Taxes and Levies amounting to Rs. 4.5 billion as well as Rs. 10.3 billion in Consumption Taxes collected on behalf of the GoSL.
The group continues to remain steadfast to meet growing demand from both retail and corporate sectors, whilst also ensuring seamless experience and leadership in Sri Lankas’ Broadband and ICT sectors. Dialog mobile network was recognised by third party network monitoring platform as the leader across 5G Experience, Coverage and Overall Experience. The Capital expenditure (Capex) for Q1 2025 reached Public Rs. 3.7 billion representing an increase of 36% YoY. As a result of improved performance and controlled Capex, the group recorded Operating Free Cash Flow (OFCF) of Rs. 12.3 billion for Q1 2025 up 71% YoY and >+100% QoQ.
In the recent quarter, Dialog was honoured as the ‘Telecommunication Brand of the Year’ for the 14th consecutive year and the ‘Service Brand of the Year’ for the 4th time at the SLIM-KANTAR People’s Awards 2025, held on 18 March. This recognition, awarded based on the voice of the people, reflects the strong affinity with Sri Lankans over the years. Dialog was also recognized at the ACCA Sustainability Reporting Awards 2024, winning the 'Non-Financial Services Category' for its exemplary commitment to sustainability and transparency. This achievement reflects the company’s ongoing efforts to integrate sustainability into its business strategy and operations.
At an entity level, the company continued to contribute a major share of Group Revenue (74%) and Group EBITDA (72%) during the quarter. Company Revenue was recorded at Rs. 32.3 billion up 26% YoY due to consolidation of Airtel business and stable pricing in the consumer space. On a QoQ was down 1% owing to days impact. EBITDA was recorded at Rs. 14.2 billion for Q1 2025 representing a growth of 63% YoY on the back of strong revenue performance and moderation in cost increase. On a QoQ basis EBITDA declined by 21% due to higher Network and Manpower costs. The company NPAT was recorded at Rs. 2.9 billion for Q1 2025, up 78% YoY albeit declining 64% QoQ.
Dialog Television (DTV), continued to consolidate its leadership position in the Digital Pay Television space, maintaining a strong subscriber base of over 1.6 million as of end Q1 2025. DTV Revenue reached Rs. 3.1 billion for Q1 2025, remaining stable YoY albeit declining 6% QoQ due to slow down in subscription revenue and days impact. DTV EBITDA was recorded at Rs. 475 million a growth of 3% YoY whilst declining 29% QoQ largely in line with the revenue movement. NPAT was recorded at a negative Rs. 367 million for the quarter.
Dialog Broadband Networks (DBN) featuring the Group’s Fixed Telecommunications, Broadband and International Businesses recorded Revenue of Rs. 9.0 billion for Q1 2025, down 38% YoY and 17% QoQ. The headline Revenue decline was due to the scaling down of low margin international wholesale business. The Core Fixed Business recorded a Revenue of Rs. 7.8 billion for Q1 2025, up 6% YoY and 2% QoQ. The EBITDAPublic for DBN grew 24% YoY and 82% QoQ to record at Rs. 5 billion for Q1 2025, driven by decline in Network and Manpower costs. NPAT reached Rs1.6Bn for Q1 2025 increasing 72% YoY.