Bezeq The Israel Telecommunication (BEZQ) Citi’s 2026 Global TMT Conference summary

Strategic outlook and financial targets

• Maintains confidence in achieving 2029 targets due to detailed planning, strong market position, and proven track record of meeting or exceeding guidance.

• Targets ILS 3 billion revenue and ILS 1.5 billion EBITDA by 2029, with double-digit free cash flow growth and 80% dividend payout.

• Plans for 14% headcount reduction over 3–4 years to support margin expansion and cost control.

• Fiber take-up expected to reach 43% in three years, with ARPU targeted at ILS 150 per household.

• EBITDA growth driven by fiber penetration, ARPU increases, and operational efficiencies.

Competitive landscape and market dynamics

• Israel's fiber market is largely established, with two main players covering most of the country and long-term agreements in place.

• Broadband ARPU benefits from higher speed tiers, with 90% of customers on 1 gig+ and incremental ARPU from speed upgrades.

• Mobile market remains highly competitive with low ARPU, but population growth and tech adoption drive healthy market expansion.

• Ongoing and anticipated market consolidation expected over the next 3–4 years.

• TV is leveraged as a value-add to drive broadband sales, with content sharing and consolidation observed.

Fiber and infrastructure strategy

• Achieved nationwide fiber rollout with low cost per passing, enabling strong ROI and high market share in both consumer and business segments.

• Network upgrades support future demand, with capacity for 25–50 gig per household and no incremental CapEx needed for higher speeds.

• Regional fiber ecosystem supports data center and hyperscaler connectivity, positioning for AI-driven demand.

• Expects 50% of customers to adopt speeds above 1 gig in three years, with ARPU uplift for each speed tier.