Dialog Axiata FY25 results highlight a year of sustained growth across mobile, broadband, and digital television services, supported by cost discipline and rising data demand. The telecom leader also increased its contribution to state revenues while strengthening next-generation connectivity nationwide.
Dialog Axiata FY25 results show higher earnings and state contributions
Dialog Axiata PLC reported a solid financial performance for the financial year ended December 2025, reflecting strong execution across its core businesses and a deepening role in Sri Lanka’s digital and economic landscape. The Group recorded a 16 percent year-to-date increase in core revenue, driven by growth in mobile, fixed, and digital pay television services.
Group headline revenue rose to Rs. 179.6 billion, marking a 5 percent increase year-on-year, despite a deliberate reduction in a low-margin international wholesale segment. Fourth-quarter revenue reached Rs. 46.5 billion, showing modest growth both quarter-on-quarter and year-on-year, underscoring stability in demand even amid operational adjustments.
Profitability improved at a faster pace, with Group EBITDA increasing 30 percent year-to-date to Rs. 86 billion. This was supported by stronger core revenues and continued cost-rescaling initiatives across business units. EBITDA for the fourth quarter stood at Rs. 23 billion, with margins remaining close to 50 percent, reflecting operational efficiency. For the full year, the Group EBITDA margin expanded significantly to 47.9 percent.
Group Net Profit After Tax reached Rs. 20.8 billion for FY25, representing a 67 percent increase compared to the previous year. Adjusted for foreign exchange effects, normalised profit exceeded Rs. 22 billion, indicating more than a doubling of underlying earnings. Quarterly profit growth remained steady, supported primarily by improved operating performance.
Cash generation also strengthened markedly during the year. Operating Free Cash Flow exceeded Rs. 49 billion, more than doubling year-to-date, providing flexibility to fund network investments, manage liabilities, and support shareholder returns.
Reflecting the year’s performance, the Board of Directors resolved to recommend a dividend of Rs. 1.50 per share to ordinary shareholders, subject to approval at the upcoming Annual General Meeting. If approved, the dividend would represent a yield of approximately 5 percent based on the FY25 closing share price, while balancing future investment needs in broadband and digital infrastructure.
At entity level, Dialog Axiata PLC remained the primary driver of Group performance, contributing 76 percent of revenue and 74 percent of EBITDA. Company revenue rose 18 percent year-to-date to Rs. 135.8 billion, while EBITDA increased 32 percent to Rs. 63.6 billion. Fourth-quarter performance was marginally lower due to network restoration expenses and relief-related donations following Cyclone Ditwah.
Dialog Television continued to hold its leading position in Sri Lanka’s digital pay-TV market, serving more than 1.6 million subscribers by the end of FY25. Annual revenue increased modestly, while profitability improved through cost rationalisation, although the segment recorded a net loss for the year.
Dialog Broadband Networks, which includes fixed, broadband, and international operations, reported a decline in revenue following the intentional scaling down of low-margin wholesale activities. Despite this, EBITDA and net profit improved significantly due to cost reductions and margin expansion, highlighting improved quality of earnings.
Beyond financial performance, Dialog Axiata FY25 results also underscore the Group’s contribution to national development. Total remittances to the Government of Sri Lanka amounted to Rs. 54.7 billion during the year, comprising direct taxes and consumption-based levies collected on behalf of the state.
Capital expenditure reached Rs. 20.2 billion, directed primarily toward high-speed broadband expansion. The Group also strengthened its leadership in next-generation connectivity with the commercial launch of Dialog 5G Ultra, now supported by over 220 live sites and more than 1.5 million connected users. Further investments of approximately 100 million dollars are planned over the next two years to expand 5G coverage.
Dialog also committed significant resources to disaster recovery efforts following Cyclone Ditwah, supporting healthcare, education, and connectivity restoration across affected regions. These initiatives reinforce the Group’s broader role in national resilience and sustainable development.