By: Staff Writer
May 18, Colombo (LNW): Sri Lanka’s leading telecom operator, Dialog Axiata PLC, posted a strong financial performance in Q1 2025, with revenue rising 4% year-on-year (YoY) to Rs. 43.3 billion. Growth was driven across its Mobile, Fixed Line, Digital Pay TV, and Tele-infrastructure sectors. However, quarterly revenue declined by 5% due to a strategic reduction in low-margin international wholesale operations.
Core revenue increased by 20% YoY to Rs. 41.4 billion, while Earnings Before Interest, Tax, Depreciation and Amortisation (EBITDA) jumped 45% YoY to Rs. 19.7 billion. Despite quarter-on-quarter (QoQ) declines of 2% in core revenue and 7% in EBITDA, Dialog achieved a significant YoY net profit growth of 49% to Rs. 4.1 billion. QoQ net profit dropped 39%.
The Group contributed Rs. 14.8 billion to government revenue, including Rs. 4.5 billion in direct taxes and Rs. 10.3 billion in consumption taxes. Capital expenditure rose 36% YoY to Rs. 3.7 billion, while Operating Free Cash Flow surged to Rs. 12.3 billion—up 71% YoY.
Dialog’s mobile network was independently rated as the country’s leader in 5G experience, coverage, and overall performance.
At the entity level, the company accounted for 74% of group revenue and 72% of EBITDA. Consolidation of the Airtel business and stable consumer pricing lifted company revenue by 26% YoY to Rs. 32.3 billion. Company-level EBITDA surged 63% YoY to Rs. 14.2 billion, with net profit rising 78% YoY to Rs. 2.9 billion.
Dialog Television maintained a strong base of over 1.6 million subscribers. Its revenue remained stable YoY at Rs. 3.1 billion, while EBITDA grew 3% YoY to Rs. 475 million. The segment recorded a net loss of Rs. 367 million.
Dialog Broadband Networks reported Q1 revenue of Rs. 9 billion, down 38% YoY due to the planned international business scale-down. However, its core fixed services grew 6% YoY to Rs. 7.8 billion, and EBITDA rose 24% YoY to Rs. 5 billion. Net profit stood at Rs. 1.6 billion.
Despite short-term impacts, Dialog remains committed to innovation and leadership in Sri Lanka’s broadband and ICT landscape.
