Bezeq The Israel Telecommunication (BEZQ) Q3 2025 earnings summary

Executive summary

• Core revenues grew 1.7%–2% year-over-year to NIS 2 billion, driven by fiber, broadband, and 5G subscriber growth, now over 93% of total revenues.

• Adjusted EBITDA increased 13.8%–14% and adjusted net profit surged 56%, mainly due to yes valuation; net profit rose 59% to NIS 446 million.

• Fiber deployment reached 2.9 million homes, with a 34% take-up rate and 969,000 fiber subscribers.

• Regulatory progress continued toward potential removal of structural separation by year-end.

• Macroeconomic improvements and regional ceasefire contributed to positive investor sentiment.

Financial highlights

• Q3 2025 revenues were NIS 2.145 billion, with core revenues up 1.7% to NIS 1.995 billion.

• Adjusted EBITDA reached NIS 1.04 billion with a margin of 48.5%; adjusted net profit was NIS 482 million, up 56%.

• Free cash flow for Q3 was NIS 331 million; net debt decreased to NIS 4.6–4.65 billion, with net debt/EBITDA ratio at 1.3x.

• Salary expenses decreased 8.9% due to sale and consolidation of Bezeq Online.

• Adjusted EBITDA margin improved to 48.5% from 41% year-over-year.

Outlook and guidance

• 2025 outlook unchanged: targeting adjusted EBITDA of NIS 3.85 billion, adjusted net profit of NIS 1.45 billion, and CapEx of NIS 1.75 billion.

• Fiber deployment target of 2.9 million homes passed; expecting gradual CapEx decrease from 2026.

• Guidance does not include potential regulatory changes or future yes revaluations.

• Commitment to maintain high credit rating within the AA group.