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Dialog consolidates 1H 2026 performance, contributing Rs 30.9bn to state revenue; investing Rs 18.5bn in digital infrastructure

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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.



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Rs 160 million + diesel discrepancy at Lakvijaya power plant prompts probe

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The Lakvijaya power plant in Norochcholai.

By Ifham Nizam

A Rs.160 million-plus diesel discrepancy at the Lakvijaya power plant in Norochcholai has triggered an internal investigation, raising questions over the handling of public funds and the controls governing fuel purchased for electricity generation.

The discrepancy surfaced during an internal audit of diesel supplied to the plant from the Kolonnawa and Sapugaskanda fuel terminals, according to senior officials familiar with the inquiry.

The audit has identified five transactions—two in December 2025 and three in January 2026—in which diesel recorded as delivered to the plant allegedly could not be fully accounted for in its physical stocks.

The investigation is now examining whether these were isolated discrepancies or part of a longer-running practice.

One transaction under scrutiny relates to January 16, when records reportedly showed that 10 diesel bowsers had arrived at the plant. Investigators subsequently found indications that the fuel stock corresponded to only nine bowsers.

A storekeeper responsible for the relevant fuel operation has reportedly been temporarily removed from those duties pending the investigation.

A senior official said investigators were reviewing historical records amid indications that similar discrepancies may have occurred over a longer period. If established, the financial exposure could therefore exceed the Rs.160 million currently identified.

The investigation is comparing fuel-terminal dispatch records, tanker movements, plant-entry records, receiving documents and physical stocks to establish exactly how much fuel was dispatched, received and accounted for.

That audit trail will also be critical in determining who authorised, received and certified the disputed consignments, and whether established controls were followed.

Relevant documents were reportedly transferred from Norochcholai to the company’s Colombo head office on September 26 for further examination, with electricity-sector security personnel assisting in the transfer.

The internal audit has also reportedly uncovered expired chemical stocks worth several hundred thousand rupees in the plant’s stores. Investigators are examining whether further inventory-management irregularities occurred.

The matter was also reportedly taken to the Puttalam Police Special Crimes Investigation Unit on September 26.

When contacted by Puttalam-based journalist Hiran Priyankara Jayasinghe for The Island Financial Review, Lakvijaya Power Plant Manager Nalaka Kumara confirmed that an investigation was under way but declined to provide further details.

The financial issue is direct: if the plant paid for diesel it did not receive, public-sector funds were spent without the electricity sector receiving the corresponding fuel.

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Sri Lanka Food Processors Association holds 29th Annual General Meeting

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The Sri Lanka Food Processors Association (SLFPA) successfully convened its 29th Annual General Meeting (AGM) on September 23, 2026, at the Water’s Edge Hotel, Battaramulla. Bringing together key industry stakeholders and member organizations, the event served as a platform to review milestone achievements from the 2025/2026 term and outline strategic priorities for the nation’s food and beverage processing sector.

At the AGM, the new Executive Committee for 2027/2028 was appointed, comprising: Honorary President Aruna Senanayake C.W. Mackie PLC Imme. Past President Thusith Wijesinghe Trans Continental Packaging & Commodities (Pvt) Ltd.

President Elect Nadishan Guruge Meadlee Trading Co. (Pvt) Ltd.

1st Vice President Damitha Perera Forbes & Walkers Commodity Brockers (Pvt) Ltd.

2nd Vice President Rasika Seneviratne Diesel & Motor Engineering PLC 3rd Vice President Deepal De Alwis Neochem International (Pvt) Ltd.

Honorary Secretary Amila Weerasinghe Nestle Lanka Limited.

Asst. SecretaryDineth Alahakoon Country Style Foods (Pvt) Ltd.

Honorary Treasurer Sameera Jayathilaka Westmann Engineering Company (Pvt) Ltd.

Asst. Treasurer Niroshan Dalpethado C D De Fonseka & Sons (Pvt) Limited. In addition to the above office bearers, the following ten Executive Committee Members were appointed:

Sanjeewa De Silva Unilever Sri Lanka Limited Sheran De Alwis MA’S Tropical Food Processing (Pvt) Limited

Thusitha Ekanayake Anods Cocoa (Pvt) Ltd.

Vijitha Govinna Plenty Foods (Pvt) Limited Ms. Praharshi Wickramasekara International Commodity Exports (Pvt) Ltd.

Sanjeewa Niroshan SGS Lanka (Pvt) Ltd. Kushan Amarasinghe Finagle Lanka (Pvt) Ltd.

Rangajeewa Hettiarrachchi Fonterra Brands Lanka (Pvt) Ltd.

Harindra Abeyrathna Vision Technologies International (Pvt) Ltd. Thilina Weerasekara Ceylon Cold Stores PLC

The event was proudly supported by key industry partners, with SGS Lanka (Pvt) Ltd serving as the Platinum Sponsor. Unilever Sri Lanka Ltd. and Nestlé Lanka Ltd. joined as Gold Sponsors, Ceylon Agro Industries – Prima as the Silver Sponsor, while Lanka Exhibition & Conference Services (LECS) and Hero Nature Products (Pvt) Ltd., supported as Bronze Sponsors.

The proceedings concluded with a vote of thanks delivered by Hony. Secretary Deepal De Alwis, followed by cocktails and a fellowship networking session, providing an opportunity for members to connect and strengthen industry ties.

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Uber brings the ‘business class of back seats’ to Sri Lanka with Uber Black

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New premium ride option expands Uber’s portfolio from affordable Moto and Tuk rides to premium on-demand travel

Uber announced the launch of Uber Black in Sri Lanka, bringing its premium ride experience to the country for the first time. Designed as the “business class of back seats,” Uber Black combines premium vehicles and highly-rated drivers for riders looking for greater comfort, quality and a more elevated travel experience.

The launch comes as demand for premium products and experiences grows across Sri Lanka, with consumers seeking greater choice and quality in their everyday experiences. Uber Black brings this choice to on-demand mobility, whether for an airport journey, an important business meeting, a special occasion or simply when riders want to travel in greater comfort.

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