Dialog Axiata PLC, a leading telecommunications provider in Sri Lanka, has reported positive topline performance across all business segments for the fiscal year 2023 (FY2023). The company’s Group consolidated revenue stood at Rs. 187.8 billion, reflecting a 5% Year-to-Date (YTD) growth. Despite a 7% Quarter-on-Quarter (QoQ) decline in Group revenue for Q4 2023, Dialog’s downstream topline performance resulted in strong double-digit growth of 19% YTD in Group Earnings Before Interest, Tax, Depreciation, and Amortization (EBITDA), reaching Rs. 61.5 billion for FY 2023.
According to Dialog, this growth in EBITDA was achieved through cost rescaling and resilience actions taken by the Group, surpassing revenue growth on both YTD and QoQ basis. The EBITDA margin improved to 32.8% for FY2023, representing a 3.8 percentage point increase. Additionally, the Group’s Net Profit After Tax (NPAT) turned positive for FY2023, crossing the Rs. 20 billion mark, up 100% driven by strong EBITDA performance, lower depreciation, forex gains, and lower finance costs.
In line with its dividend policy and financial performance, Dialog Axiata PLC’s Board of Directors proposed a dividend of Rs. 1.34 per share for consideration by shareholders, marking the highest ever dividend amount compared to previous fiscal years.
Dialog Group continued to be a significant contributor to state revenues, remitting a total of Rs. 40.8 billion to the Government of Sri Lanka (GoSL) during FY2023. This included Direct Taxes and Levies amounting to Rs. 9.5 billion and Rs. 31.3 billion in consumption taxes collected on behalf of the GoSL.
The Group’s capital expenditure for FY2023 reached Rs. 25.5 billion, with investments directed towards high-speed broadband infrastructure to expand the Group’s leadership in Sri Lanka’s broadband sector. Dialog also recorded Operating Free Cash Flow (OFCF) of Rs. 25.1 billion for FY2023, up over 100% YTD.
Moreover, Dialog Axiata PLC continued to demonstrate its technological leadership by enabling over 200,000 Sri Lankans to experience the power of 5G through its 5G Trial network, recognized as Sri Lanka’s largest 5G trial network.
At an entity level, Dialog Axiata PLC remained a major contributor to Group Revenue (55%) and Group EBITDA (62%). The company’s revenue for FY2023 reached Rs. 102.9 billion, with EBITDA reaching Rs. 38.4 billion, up 8% YTD. Dialog Television (DTV) maintained its leadership position in the digital pay television space, with revenue growing by 3% YTD to Rs. 12.40 billion for FY2023. Similarly, Dialog Broadband Networks (DBN) saw a 7% YTD increase in revenue, reaching Rs. 73.6 billion for FY2023, driven by growth in international wholesale and fixed broadband revenue.
Overall, Dialog Axiata PLC’s positive performance in FY2023 underscores its resilience, strategic initiatives, and commitment to delivering value to its stakeholders amidst challenging market conditions.