Dialog Consolidates 1H 2026 Performance, Contributing Rs 30.9Bn to State Revenue and Investing Rs 18.5Bn in Digital Infrastructure

• 1H 2026 Revenue: Rs 95.5Bn, up 9% YTD
• 1H 2026 EBITDA: Rs 50Bn, up 23% YTD, EBITDA Margin of 52.3% for 1H, up 6.0pp YoY
• 1H 2026 NPAT: Rs 19.3Bn, up >+100% YTD
• Taxes Paid to GoSL: Rs 30.9Bn (Rs 8.1Bn in Direct, Rs 22.8Bn Indirect)
• Investment in Digital Infrastructure: Rs 18.5Bn; Operating Free Cash Flow (OFCF): Rs 18.4Bn
• Second Interim Dividend: Rs 0.70 per share; YTD DPS of Rs. 1.40; Annualized Dividend Yield of 6.1%

Dialog Axiata PLC announced its consolidated financial results for the quarter ended 30 June 2026 on Friday, 14 August 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 9% Year to Date (“YTD”) on the back of strong performances in Mobile, Fixed and Digital Pay Television businesses as Group Revenue reached Rs 95.5Bn for 1H 2026. On a Quarter-on-Quarter (“QoQ”) basis, revenue increased by 2% supported by Data Revenue growth and Home Broadband Revenue generation to reach Rs 48.2Bn for Q2 2026.

The Group Earnings Before Interest, Tax, Depreciation and Amortisation (“EBITDA”) was recorded at Rs 50Bn, up 23% YTD supported by Revenue performance and Cost Rescaling Initiatives. EBITDA margin expanded by 6.0pp YoY to reach 52.3%. On a QoQ basis Group EBITDA grew 6% to record Rs 25.7Bn for Q2 2026.

Group Net Profit After Tax (“NPAT”) was recorded at Rs. 19.3Bn for 1H 2026, increasing by over 100% YoY, supported by strong EBITDA growth, lower net finance costs and foreign exchange gains, primarily arising from the timely execution of forward contracts against future USD-denominated liabilities. On a QoQ basis, Group NPAT increased 10% to Rs. 10.1Bn for Q2 2026. Excluding the impact of foreign exchange gains, underlying NPAT for Q2 2026 amounted to Rs. 9.6Bn, reflecting growth of 4% QoQ and 76% YoY. Underlying NPAT for 1H 2026 reached Rs. 18.8Bn, representing an increase of 91% YoY.

Reflecting strong operational performance, the Group recorded Operating Free Cash Flow (“OFCF”) of Rs 18.4Bn for 1H 2026.

Delivering Sustainable Shareholder Returns

Following a review of the Group’s financial performance and future investment requirements, the Board of Directors of Dialog Axiata PLC approved a second interim dividend of Rs 0.70 per share for FY 2026 at its meeting held on 14 August 2026. This brings the YTD dividend distribution to Rs 1.40 per share and represents an annualized dividend yield of 6.1%, based on the Company’s closing share price for Q2 2026, reflecting Dialog’s continued commitment to delivering sustainable returns to shareholders while supporting long-term growth investments.

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 (75%). Supported by YoY growth in the Data segment and effective cost-rescaling initiatives, Company revenue for 1H 2026 increased by 11% YTD to Rs 73.3Bn, while EBITDA rose 27% YTD to reach Rs 37.3Bn. On a QoQ basis, Company revenue and EBITDA grew by 3% and 4% respectively, primarily attributable to the flow-through impact of revenue growth and cost optimizations. Furthermore, NPAT for 1H 2026 was recorded at Rs 15.8Bn, up +>100% YoY. On a QoQ basis, Company NPAT grew 8% QoQ to reach Rs 8.2Bn.

Dialog Television (“DTV”) maintained its leadership in the Pay-TV sector with a subscriber base of over 1.6Mn as at end June 2026. In 1H 2026, revenue grew 17% YoY to reach Rs 7.5Bn, reflecting the growth in advertising revenue. The top line growth translated to strong EBITDA performance reflecting a growth of 54% YTD to reach Rs 1.8Bn for 1H 2026. Accordingly, DTV recorded a NPAT of Rs 0.4Bn for the 1H 2026.

Dialog Broadband Networks (“DBN”) featuring the Group’s Fixed Telecommunications, Broadband and International Businesses recorded Revenue of Rs 17.9Bn for 1H 2026, reflecting a growth of 3% YTD, driven by broadband and data revenue growth notwithstanding the substantial reduction in revenues from the low-margin international hubbing business. DBN’s EBITDA grew 12% YTD to reach Rs 10.8Bn for 1H 2026, with EBITDA margin maintained 60%, up 5pp YoY. NPAT was recorded at Rs 4.1Bn for 1H 2026, up 41% YTD resulting from lower depreciation and net finance cost in addition to forex gains.

Continued Contribution to National Development

Dialog Group remained a key contributor to state revenue, remitting a total of Rs 30.9Bn to the Government of Sri Lanka (GoSL) in 1H 2026. This comprised Rs 8.1Bn in Direct Taxes and Levies and Rs 22.8Bn in Indirect Taxes collected on behalf of the GoSL. On a YoY basis, total taxes paid increased by 9%, with Direct taxes up 14% YoY and Indirect taxes up 7% YoY.

Strengthening Digital Infrastructure Through 5G Investment

The Group capital expenditure for 1H 2026 amounted to Rs 18.5Bn, resulting in a Capex to Revenue ratio of 19%. Investments were primarily directed towards the accelerated rollout of next generation 5G infrastructure, expanding the network footprint to over 1,000 live sites. 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.

Advancing Next-Generation Broadband with Dialog Air Fibre

During the quarter, Dialog launched Dialog Air Fibre, Sri Lanka’s first 5G-powered ultra-fast Wi-Fi solution, further strengthening its position in the broadband market. Built on Dialog’s advanced 5G network, Air Fibre offers a high-speed, low-latency, plug-and-play connectivity experience without the need for fixed-line infrastructure, providing a strong alternative to fibre broadband. The introduction of Air Fibre broadens Dialog’s addressable market, strengthens its broadband proposition, and supports the increasing demand for next-generation digital connectivity solutions.

Dialog Pay Launch Accelerates Digital Financial Inclusion

The Company announced the launch of Dialog Pay, an integrated platform within the MyDialog App that brings together connectivity, payments, and financial services. Aligned with the Government of Sri Lanka’s LankaQR Payment Promotion Programme, Dialog Pay aims to accelerate digital payment adoption and advance financial inclusion by delivering convenient, secure, and accessible financial services through Dialog’s digital ecosystem.

More details are available at the following links:
Dialog Axiata PLC direct weblink
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