Dialog’s Profitability Continues to Grow in Q3 2023

November 10th, 2023         Colombo


  • Group Revenue remained resilient recording a growth of 14% YTD albeit muted in Q3 2023
  • Group Net Profit After Tax reached Rs14.9Bn YTD 2023 to record a growth of 159% YTD
  • Total Taxes Paid to GoSL Rs21.9Bn for nine months ending 30th September 2023 which included Rs6.4Bn in Direct and Rs15.5Bn in Indirect Taxes
  • Capex Investments of Rs21.2Bn

Dialog Axiata PLC announced, Friday 10th November 2023, its consolidated financial results for the nine months ended 30th September 2023. 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 all business segments on a Year to Date (“YTD”) basis with Mobile, Fixed Line, Digital Pay Television, International and Tele-infrastructure recording positive growth as Group revenue reached Rs144.4Bn up 14% YTD. The Quarter-on-Quarter (“QoQ”) revenue moderated to Rs46.7Bn down 2%. The Group Earnings Before Interest, Tax, Depreciation and Amortisation (“EBITDA”) reached Rs44.5Bn up 7% YTD supported by top line performance. On a QoQ basis Group EBITDA demonstrated a strong recovery to record at Rs17.4Bn up 23% QoQ as cost recalling initiates yielded positive results.

Driven by EBITDA performance Group Net Profit After Tax (“NPAT”) reached Rs14.9Bn to record a growth of 159% YTD which was also assisted by favourable forex movement. Q3 2023 NPAT was recorded at Rs3.1Bn declining 1% QoQ due to forex losses, as the Sri Lankan Rupee (“LKR”) depreciated against the United States Dollar (“USD”) by 4.7% during the quarter. However focused efforts to bring down forex exposure in the balance sheet, inter alia resulting in prepayment of foreign debt amounting to USD45Mn YTD, shielded the bottom line, albeit partially, from the impact of forex depreciation in Q3 2023.

Dialog Group continued to be a significant contributor to state revenues, remitting a total of Rs21.9Bn to the Government of Sri Lanka (GoSL) during the first nine months of 2023. Total remittances included Direct Taxes and Levies amounting to Rs6.4Bn and Rs15.5Bn in Consumption Taxes collected on behalf of the GoSL.

The Group continued to support infrastructure investments to ensure seamless customer experience and leadership in Sri Lankas’ Broadband and ICT sectors. Accordingly, the YTD capital expenditure reachedPublic Rs21.2Bn for the nine months ended 30th September 2023. In line with the above Capex, the Group recorded positive Operating Free Cash Flow (“OFCF”) of Rs13.6Bn for the first nine months of 2023, up over 100% YTD.

Demonstrating Dialog’s commitment to sustainability and transparency, the Company become the First Telco in South Asia to Adopt SASB & GSMA Standards. The SASB and GSMA standards are specifically designed to address the unique challenges and opportunities within the telecommunications industry. By embracing these additional reporting frameworks, Dialog aims to further enhance its ESG (Environmental, Social, and Governance) agenda and reporting practices.

At an entity level, Dialog Axiata PLC (the “Company”) continued to contribute a major share of Group Revenue (53%) and Group EBITDA (60%). Company revenue was recorded at Rs76.6Bn for the first nine months of 2023 up 2% YTD and Rs26.2Bn for Q3 2023 up 5% QoQ, resulting from growth in Data segment. Profitability continued to be impacted due to higher network and marketing spend on YTD basis. Accordingly, Company EBITDA was recorded at Rs27.8Bn for nine months ending 30th September 2023, down 6% YTD albeit increasing 21% QoQ to record at Rs10.7Bn for Q3 2023 owing to traction gained on cost rescaling initiatives. Company NPAT was recorded at Rs9.7Bn for first nine months of 2023 owing to favourable forex movement YTD, albeit making a loss of Rs90.2Mn for Q3 2023 due to LKR depreciation against the USD during the quarter as alluded to earlier.

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 Q3 2023. DTV revenue continued the growth momentum to record at Rs9.1Bn for nine months ended 30th September 2023, up 7% YTD while on a QoQ basis revenue was up 4% to reach Rs3.1Bn for Q3 2023. DTV EBITDA was up 56% to reach Rs1.9Bn for the first nine months of 2023, due to strong contribution from revenue, cost rescaling initiatives and favorable forex movement. Consequently, DTV turned profitable to record Rs229Mn for the nine months ended 30th September 2023.

Dialog Broadband Networks (“DBN”) featuring the Group’s Fixed Telecommunications, Broadband and International Businesses recorded revenue growth of 26% YTD to reach Rs58.8Bn for nine months ending 30th September 2023 and declined 14% QoQ to record at Rs17.4Bn for Q3 2023, due to lower wholesalePublic revenue. Following the revenue performance, DBN EBITDA increased to reach Rs12.7Bn while Net Profit reached Rs3.6Bn for the nine months ending 30th September 2023.

More details are available at the following links:

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