Dialog Delivers Strong FY 2024 Performance with 10% Core Revenue Growth, Rs12.4Bn NPAT and Contributes Rs47.3Bn to GoSL Tax Revenue; Recommends a Dividend of Rs1.00 per share

• Strong YTD growth in all key financial lines:

  - Core Revenue Rs151.3Bn, EBITDA Rs66.3Bn and NPAT Rs12.4Bn

  - Core Revenue Growth at +10% YTD, EBITDA Growth at +8% YTD

• Recommended Dividend: Rs1.00 Per Share
• Total Taxes Paid to GoSL Rs47.3Bn for FY 2024 which included Rs10.6Bn in Direct and Rs36.7Bn in Indirect Taxes
• FY 2024 Investments in High-Speed Broadband and other Infrastructure Tops Rs30.3Bn
• FY 2024 Operating Free Cash Flow recorded at Rs.23.6Bn

Dialog Axiata PLC announced, Friday 14th February 2025, its consolidated financial results for the year ended 31st December 2024. Financial results included those of Dialog Axiata PLC (the “Company”) and of the Dialog Axiata Group (the “Group”).

The Group¹ delivered a strong performance across Mobile, Fixed Line, Digital Pay Television and Teleinfrastructure businesses recording a positive core Revenue growth of 10% Year to Date (“YTD”). Group Headline Revenue reached Rs171.2Bn down 7% mainly resulting from a conscious scaling down of low margin international wholesale business amounting to Rs24.3Bn. The Q4 2024 Revenue was recorded at Rs45.8Bn up 7% Quarter-on-Quarter (“QoQ”) and 6% Year-on-Year (“YoY”). The Group Earnings Before Interest, Tax, Depreciation and Amortisation (“EBITDA”) reached Rs66.3Bn up 8% YTD supported by Core Revenue performance and Cost Rescaling Initiatives. On a QoQ basis Group EBITDA demonstrated a strong growth to record at Rs21.2Bn up 18% QoQ with an EBITDA margin of 46.3% as Cost Rescaling Initiatives yielded positive results. Group EBITDA margin reached 38.7% for FY 2024, up 5.4pp.

Group Net Profit After Tax (“NPAT”) reached Rs12.4Bn for FY 2024 down 38% YTD mainly resulting from significant forex gains recorded in prior year. Normalized for forex impact, NPAT decline was limited to 12% YTD to recorded at Rs8.7Bn, due to dilution from Airtel (Rs2.2Bn) and higher taxation (Rs1.1Bn). On a QoQ basis NPAT grew 51% to reach Rs6.8Bn resulting from strong EBITDA performance and lower finance cost.

Dialog Group continued to be a significant contributor to state revenues, remitting a total of Rs47.3Bn to the Government of Sri Lanka (GoSL) during FY 2024. Total remittances included Direct Taxes and Levies amounting to Rs10.6Bn and Rs36.7Bn in Consumption Taxes collected on behalf of the GoSL.

In line with the dividend policy and financial performance of the Group and taking into account the forward investment requirements to serve the nation's demand for Broadband and Digital services, the Board of Directors of Dialog Axiata PLC at its meeting held on 14th February 2025, resolved to propose for consideration by the Shareholders of the Company, a dividend to ordinary shareholders amounting to Rs1.00 per share. The said dividend, if approved by shareholders, would translate to a Dividend Yield of 8.5% based on share closing price for FY 2024. The dividend so proposed will be considered for approval by the shareholders at the Annual General Meeting (AGM) of the Company, the date pertaining to which would be notified in due course.

The Group capital expenditure for the year ended 31st December 2024 reached Rs30.3Bn, resulting in a Capex to Revenue ratio of 18%. Capital expenditure was directed towards investments in High-Speed Broadband infrastructure to further expand the Group's leadership in Sri Lanka's Broadband sector. Capital expenditure was also expended for the integration of Airtel Network. Accordingly, the Group recorded Operating Free Cash Flow (“OFCF”) of Rs23.6Bn for FY 2024.

During FY 2024 Dialog completed the acquisition and amalgamation with Bharti Airtel Lanka (Private) Limited ("Airtel Lanka"). This was a significant step forward in advancing Sri Lanka's digital infrastructure, underscoring the combined strength and commitment of the Axiata and Bharti groups in delivering enhanced connectivity and more robust digital services across the country while reducing the carbon footprint through consolidation of duplicated network infrastructure.

At an entity level, Dialog Axiata PLC (the “Company”) continued to contribute a major share of Group Revenue (67%) and Group EBITDA (73%). Company2 revenue was recorded at Rs115.7Bn for FY 2024 up 12% YTD and Rs32.9Bn for Q4 2024 up 5% QoQ resulting from growth in Data segment. On the back of Revenue uplift and from Cost Rescaling Initiatives, profitability improved as Company EBITDA was recorded at Rs48.3Bn, up 26% YTD for FY 2024 and Rs17.9Bn for Q4 2024, up 40% QoQ. However, NPAT was recorded at Rs11.1Bn for FY 2024, down 8% YTD, due to significantly favourable forex impact in the prior year. Normalised for the said impact, company NPAT was up >100% YTD to reach Rs7.5Bn. On a QoQ basis, Company NPAT was recorded at Rs7.9Bn, up >+100% QoQ.

Dialog Television (“DTV”), continued to consolidate its leadership position in the Digital Pay Television as the subscriber base being maintained at over 1.6Mn as of end FY 2024. DTV revenue was recorded at Rs12.5Bn for FY 2024 up marginally by 1% YTD. On a QoQ basis revenue was up 9% to reach Rs3.3Bn for Q4 2024. DTV EBITDA was down 27% YTD to record at Rs2.1Bn for FY 2024, largely due to cost escalation in relation to satellite and content costs. Consequently, DTV PAT was recorded at a negative Rs0.8Bn for FY 2024.

Dialog Broadband Networks (“DBN”) featuring the Group’s Fixed Telecommunications, Broadband and International Businesses recorded Revenue of Rs49.1Bn for FY 2024 down 33% YTD due to the conscious scaling down of low margin international wholesale business amounting to Rs24.3Bn. Downstream of Revenue decline DBN EBITDA was down 14% YTD to reach Rs15.2Bn for FY 2024 albeit EBITDA margin improving 6.9pp to record at 31% for the year. NPAT reached Rs2.1Bn for the same period, down 64% YTD due to higher taxation.

¹ Group performance includes Bharti Airtel Lanka Private Limited performance from 1st July 2024 onwards.

² Company performance includes Bharti Airtel Lanka Private Limited performance from 1st July 2024 onwards.

More details are available at the following links
Dialog Axiata PLC direct weblink for results
CSE direct weblink for results
Dialog sustainability