Bezeq The Israel Telecommunication (BEZQ) Q2 2026 earnings summary

Executive summary

• Core revenues grew 4% year-over-year to over NIS 2 billion, with growth across all key segments including fiber, 5G, and TV.

• Comparable EBITDA increased 6.2% to NIS 978 million; comparable net profit surged 38% to NIS 315 million, driven by higher revenues and lower expenses.

• Dividend of NIS 415 million and new NIS 100 million share buyback announced as part of an NIS 800 million multi-year program.

• Subscriber growth included a 17% increase in fiber subscribers and 12% growth in 5G plans; retail broadband ARPU rose 4.4% and yes ARPU 8%.

• Strategic focus on digital infrastructure, international submarine cable projects, and M&A, including the MoU to acquire Wecom.

Financial highlights

• Q2-2026 revenues reached NIS 2.145 billion, with core revenues at NIS 2.03 billion (94% of group revenues).

• Comparable EBITDA margin improved to 45.2% from 43.1% year-over-year.

• Free cash flow for H1 2026 totaled NIS 610 million, up from NIS 492 million year-over-year.

• Net debt increased to NIS 5.22 billion, with a net debt to Comparable EBITDA ratio of 1.6x.

• Dividend payout ratio at 80% of H1-2026 net profit.

Outlook and guidance

• 2026 outlook and 2029 targets remain unchanged, with focus on maintaining ilAA rating and increasing shareholder remuneration.

• 2029 targets: Core revenues NIS 8.7–8.9b, Comp EBITDA NIS 4.2–4.4b, CapEx NIS 1.5–1.6b, Comp Net Profit NIS 1.3–1.4b, FCF after leases NIS 1.3–1.4b.

• Operational targets for 2029 include 3.5m homes passed with fiber, 43% fiber take-up, and 85% of postpaid subscribers on 5G plans.

• Confident in achieving guidance, with no expected softness in H2; will update market if deviation exceeds 10%.

• Subsea cable projects and structural separation are not included in 2029 forecasts, representing potential upside.