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.

Aitken Spence PLC, with a portfolio spanning diverse industries and geographies, began the financial year 2026/27 with strong earnings momentum, recording a 74% increase in Group Profit Before Tax (PBT) to Rs. 1.7 billion for the quarter ended June 30, 2026. Profit After Tax (PAT) increased by 158% to Rs. 1.0 billion, while Group EBITDA increased by 23% to Rs. 5.3 billion compared to the corresponding period of the previous year, reflecting stronger underlying operating performance across the Group’s businesses.

The Group’s improved profitability during the quarter was driven by other operating income and stronger contributions from equity-accounted investees. Profit attributable to equity holders for the first quarter of FY2026/27 amounted to Rs. 1.5 billion, reflecting an increase of 172.0% compared to the corresponding period last year. Notably, the Port City BPO venture, bunkering operations, and overseas port management business delivered enhanced performances, making a significant contribution to the Group’s earnings during the period.

The Group’s Maritime & Freight Logistics sector was a key contributor to the quarter’s performance, with PBT increasing by 58.2% to Rs. 1.7 billion. The improvement was primarily driven by higher volumes handled by the Group’s liner operations, together with stronger performances from overseas port management, freight forwarding and container services.

The Group’s Tourism sector recorded a PBT loss of Rs. 1.0 billion for the quarter, primarily reflecting softer demand from the UK and European source markets amid geopolitical uncertainties in the Middle East. The impact was partially cushioned by improved performances from the destination management and airline GSA businesses, which continued to strengthen their contribution to sector earnings.

The Group’s Strategic Investments sector delivered a strong turnaround during the quarter, reporting a PBT of Rs. 650 million compared to a loss in the corresponding period last year, led by enhanced operational results and favourable foreign exchange gains.

By Sanath Nanayakkare

Public confidence in the government has weakened sharply over the past five months, with growing economic pessimism emerging as a key factor, according to a new nationwide opinion poll.

The latest ‘Mood of the Nation’ survey by Verité Research found that 50% of Sri Lankans approved of the way the government was working, down from a post-election high of 65% in February.

At the same time, optimism about the economy has deteriorated dramatically. Only 42% of those surveyed said economic conditions were getting better, compared with 64% in February. Meanwhile, 40% said the economy was getting worse, up from about 15% in the previous survey.

The shift in public sentiment is also evident in how people assess the economy today. Nearly 56% described current economic conditions as “poor,” while only 38% considered them “good” or “excellent.”

These figures suggest that although the government retains the support of about half the population, the strong optimism that followed its election victory has begun to erode as people assess their economic circumstances more critically.

The poll’s Economic Confidence Index, which combines public perceptions of the current economy with expectations about its future direction, fell into negative territory at minus 8, compared with positive readings in previous rounds. That marks a significant turnaround from the improvement in economic sentiment recorded after February 2025. The index had stood at minus 39 in mid-2024, before moving into positive territory as Sri Lanka’s economy began emerging from its worst crisis in decades.

The latest figures therefore point to an important political-economic relationship: as optimism about the economy has weakened, government approval has also declined. The survey recorded government disapproval at 31%, more than double the level of around 15% recorded in the previous round.

The findings come as Sri Lanka continues its difficult recovery from the 2022 economic crisis with the support of the IMF and friendly countries such as India. The government is under pressure to translate macroeconomic stabilisation into improvements that ordinary households can feel in their daily lives.

According to Verité Research, the ‘Mood of the Nation’ poll was conducted from July 11 to 30 among 2,013 Sri Lankan adults, using a nationally representative, multi-stage random sample. It has a maximum sampling error margin of ±2.21 percentage points at a 95% confidence level.

The message for the government from the survey is relatively clear: winning public confidence during an election campaign is easier than managing an economy. As the immediate sense of crisis has faded, voters appear increasingly to be judging the government by whether economic conditions are actually improving under its watch.