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Bezeq The Israeli Telecommunication (BEZQ) investor relations material

Bezeq The Israeli Telecommunication Q2 2025 earnings summary

Complete event summary combining all related documents: earnings call transcript, report, and slide presentation.
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Q2 2025 earnings summary6 Aug, 2025

Executive summary

  • Core revenues grew 3.1% year-over-year to NIS 1.95 billion, driven by ARPU and growth across all key segments, with adjusted EBITDA up 11.3% and adjusted net profit up 46%, mainly due to a valuation increase at yes.

  • Net profit surged 48% to NIS 426 million, and the board recommended a NIS 583 million dividend (NIS 0.21/share), the largest semi-annual payout since 2017.

  • Double-digit subscriber growth in fiber (31%), 5G postpaid (15%), and yes IPTV (11%), with yes posting its first quarterly TV subscriber increase since Q1 2023.

  • Strategic focus on future growth engines, including potential acquisitions of Accelerate/Excelera Telecom and HOT Mobile, and ongoing investments in AI and infrastructure.

  • Regulatory progress on wholesale tariff updates and removal of structural separation, reflecting a maturing, competitive market.

Financial highlights

  • Adjusted EBITDA reached NIS 1.01 billion with a margin of 47.4%; adjusted net profit was NIS 427 million, up 46.2% year-over-year.

  • Free cash flow increased 29% to NIS 230 million; net debt decreased by 2.1% to NIS 4.9 billion; net debt/EBITDA ratio at 1.5x.

  • Dividend of NIS 583 million (NIS 0.21 per share) recommended, with ex-dividend date September 28, 2025, and payment on October 19, 2025.

  • YES ARPU rose 3% to NIS 189; broadband retail ARPU and telephone ARPU also increased year-over-year due to fiber growth.

  • Salary expenses decreased 5.5% due to the sale and deconsolidation of Bezek Online.

Outlook and guidance

  • FY 2025 outlook was raised: adjusted net profit expected at NIS 1.45 billion and adjusted EBITDA at NIS 3.85 billion; CapEx guidance unchanged at NIS 1.75 billion.

  • Fiber deployment target of 2.9 million households, with midterm KPIs on track and at least 40% take-up rate.

  • Expectation of at least 2% CAGR in EBITDA, with legacy high-margin revenue declines offset by operational efficiencies.

  • Commitment to maintain high AA credit rating.

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