Dialog Axiata PLC consolidated financial results for the nine months ended 30th September 2024 shows a rebound in the third quarter with improvement in revenue and profitability.

The Group completed the amalgamation with Bharti Airtel Lanka (Private) Limited (Airtel) during the quarter under the applicable provisions of the Companies Act, with Dialog remaining as the surviving entity.

This marks the official cessation of Airtel as a corporate entity, effective 30th August 2024, with its operational performance fully subsumed and consolidated within Dialog’s financial statements. The Group delivered a strong performance across Mobile, Fixed Line, Digital Pay Television, International and Tele-infrastructure businesses recording a positive core revenue growth of 6 percent Year to Date (YTD).

Excluding revenue from Airtel Lanka, YTD core Revenue growth was at 3 percent. Group Revenue reached Rs. 125.4 billion down 10 percent mainly resulting from the scaling down of low margin international wholesale business.

The 3Q24 revenue was recorded at Rs. 42.8 billion up 5 percent Quarteron-Quarter (QoQ). Excluding Airtel Lanka, 3Q24 revenue was down 3 percent QoQ although up 6 percent QoQ on Core Revenue basis.

The Group Earnings Before Interest, Tax, Depreciation and Amortisation (EBITDA) reached Rs. 45.1 billion up 1 percent YTD supported by top line performance. On a QoQ basis Group EBITDA demonstrated a strong recovery to record at Rs. 18.1 billion up 33 percent QoQ with an EBITDA margin of 42.0 percent as Cost R e s c a l i n g I n i t i a t i v e s y i e l d e d positive results. Group EBITDA margin reached 35.9 percent for first nine months of 2024, up 4.4pp.

Group Net Profit After Tax (NPAT) reached Rs. 4.5 billion for 3Q24 up 45 percent Year on Year (YoY) while the NPAT was recorded at Rs. 5.7 billion for first nine months of 2024, down 62 percent YTD which predominantly resulted from significantly higher favourable forex movement in 2023. Normalised for forex, PAT was down 54 percent YTD to record at Rs.1.9 billion for the first nine months of 2024, owing to higher deprecation, dilution from Airtel consolidation and taxation.

Dialog Group continued to be a significant contributor to state revenues, remitting a total of Rs. 35.1 billion to the Government of Sri Lanka (GoSL) during the first nine months of 2024. Total remittances included Direct Taxes and Levies amounting to Rs. 8.6 billion and Rs. 26.5 billion in Consumption Taxes collected on behalf of the GoSL.