Dialog Axiata posts strong 1Q results with 20% core revenue growth

Dialog Axiata PLC reported a consolidated revenue of Rs.43.3 billion for the first quarter ended March 31, 2025, marking a 4 percent year-on-year (YoY) increase. 

The growth was driven by performances across its mobile, fixed line, digital pay television and teleinfrastructure segments.

On a quarter-on-quarter (QoQ) basis, revenue declined by 5 percent, owing to conscious scaling down of low-margin international wholesale business, amounting to Rs.1.7 billion for 1Q 2025. Group core revenue was recorded at Rs.41.4 billion for 1Q 2025, up 20 percent YoY albeit declining 2 percent QoQ, due to days impact.

Earnings before interest, tax, depreciation and amortisation (EBITDA) rose 45 percent YoY to Rs.19.7 billion, with the EBITDA margin improving by 12.8 percentage points to 45.5 percent. Net profit after tax (NPAT) increased by 49 percent YoY to Rs.4.1 billion.

The company contributed Rs.14.8 billion to the government of Sri Lanka in 1Q25, comprising Rs.4.5 billion in direct taxes and levies and Rs.10.3 billion in consumption taxes collected on behalf of the government.

Capital expenditure for the quarter reached Rs.3.7 billion, a 36 percent YoY increase, reflecting the ongoing investments in network infrastructure. Operating free cash flow surged 71 percent YoY to Rs.12.3 billion, indicating improved operational efficiency.

At entity level, Dialog Axiata PLC contributed 74 percent of the group’s revenue and 72 percent of EBITDA. The company’s revenue grew 26 percent YoY to Rs.32.3 billion, bolstered by the consolidation of Airtel Lanka and stable consumer pricing. EBITDA rose 63 percent YoY to Rs.14.2 billion, while NPAT increased 78 percent YoY to Rs.2.9 billion.

Dialog Television maintained a subscriber base exceeding 1.6 million. Revenue remained stable YoY at Rs.3.1 billion. EBITDA grew 3 percent YoY to Rs.475 million, while the segment reported a net loss of Rs.367 million for the quarter.

Dialog Broadband Networks, encompassing the group’s fixed telecommunications, broadband and international businesses, reported a 38 percent YoY decline in revenue to Rs.9.0 billion, primarily due to the scaling down of the international wholesale business. However, the core fixed business revenue increased 6 percent YoY to Rs.7.8 billion. EBITDA for this segment grew 24 percent YoY to Rs.5.0 billion, with NPAT rising 72 percent YoY to Rs.1.6 billion.