Dialog delivers strong FY2024 performance

• Strong YTD growth in all key financial lines
• Core revenue up 10% to Rs. 151.3 b; EBITDA up 8% to Rs. 66.3 b and NPAT at Rs. 12.4 b
• Recommends dividend of Rs. 1 per share
• Total taxes paid to Govt. at Rs. 47.3 b, including Rs. 10.6 b in Direct and Rs. 36.7 b in Indirect Taxes
• FY2024 investments in high-speed broadband and other infrastructure top Rs. 30 b
• FY2024 OFCF up 35% to Rs. 34 b

Dialog Axiata PLC has announced strong results for the financial year ended on 31 December 2024.

The Group has 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 Rs. 171.2 billion, down 9% mainly resulting from a conscious scaling down of low-margin international wholesale businesses amounting to Rs. 24.3 billion. The Q42024 revenue was recorded at Rs. 45.8 billion, up 7% quarter-on-quarter (QoQ) and 6% year-on-year (YoY). 

Group Earnings Before Interest, Tax, Depreciation and Amortisation (EBITDA) reached Rs. 66.3 billion, 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 Rs. 21.2 billion, up 18% QoQ, with an EBITDA margin of 46.3% as cost rescaling initiatives yielded positive results. Group EBITDA margin reached 38.7% for the FY2024, up 5.4%. Group results include the Bharti Airtel Lanka Ltd., performance from 1 July 2024 onwards.

Group Net Profit After Tax (NPAT) reached Rs. 12.4 billion for the FY2024, down 38% YTD mainly resulting from significant forex gains recorded in the prior year. Normalised for forex impact, the NPAT decline was limited to 12% YTD to record at Rs. 8.7 billion due to dilution from Airtel (Rs. 2.2 billion) and higher taxation (Rs. 1.1 billion). On a QoQ basis, NPAT grew 51% to reach Rs. 6.8 billion resulting from a strong EBITDA performance and lower finance cost.

The Dialog Group continued to be a significant contributor to State revenues, remitting a total of Rs. 47.3 billion to the Government of Sri Lanka during the FY2024. Total remittances included Direct Taxes and Levies amounting to Rs. 10.6 billion and Rs. 36.7 billion in Consumption Taxes collected on behalf of the Government.

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 14 February resolved to propose for consideration by the shareholders of the company a dividend to ordinary shareholders amounting to Rs. 1 per share. The said dividend, if approved by shareholders, would translate to a dividend yield of 8.5% based on the share closing price for FY2024. 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 31 December 2024 reached Rs. 30.3 billion, 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 the Airtel network. Accordingly, the Group recorded an Operating Free Cash Flow (OFCF) of Rs. 34 billion for the FY2024, up 35% YTD.

During FY2024, Dialog completed the acquisition of and amalgamation with Bharti Airtel Lanka Ltd. (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 the consolidation of duplicated network infrastructure.

At an entity level, Dialog Axiata PLC continued to contribute a major share of Group Revenue (67%) and Group EBITDA (73%). Company revenue was recorded at Rs. 115.7 billion for FY2024, up 12% YTD, and Rs. 32.9 billion for Q42024, up 5% QoQ, resulting from growth in the Data segment. On the back of revenue uplift and from cost rescaling initiatives, profitability improved as company EBITDA was recorded at Rs. 48.3 billion, up 26% YTD for the FY2024, and Rs. 17.9 billion for Q42024, up 40% QoQ. However, NPAT was recorded at Rs. 11.1 billion for FY2024, down 8% YTD, due to significantly favourable forex impact in the prior year. Normalised for the said impact, company NPAT was up over 100% YTD to reach Rs. 7.5 billion. On a QoQ basis, company NPAT was recorded at Rs. 7.9 billion, upwards of 100% QoQ.

Dialog Television (DTV) continued to consolidate its leadership position in the Digital Pay Television segment as the subscriber base being maintained at over 1.6 million as of end FY2024. DTV revenue was recorded at Rs. 12.5 billion for FY2024, up marginally by 1% YTD. On a QoQ basis, revenue was up 9% to reach Rs. 3.3 billion for Q42024. DTV EBITDA was down 27% YTD to record at Rs. 2.1 billion for FY2024, largely due to cost escalation in relation to satellite and content costs. Consequently, DTV PAT was recorded at a negative Rs. 0.8 billion for FY2024.

Dialog Broadband Networks (DBN) featuring the Group’s Fixed Telecommunications, Broadband, and International Businesses, recorded revenue of Rs. 49.1 billion for FY2024, down 33% YTD due to the conscious scaling down of low-margin international wholesale businesses amounting to Rs. 24.3 billion. Downstream of revenue decline, DBN EBITDA was down 14% YTD to reach Rs. 15.2 billion for FY2024 albeit EBITDA margin improving 6.9% to record at 31% for the year. NPAT reached Rs. 2.1 billion for the same period, down 64% YTD due to higher taxation.