Bezeq The Israel Telecommunication (BEZQ) Q3 2026 earnings summary

Executive summary

• Q3 core revenue rose 2.3% YoY to NIS 2.04b; comparable EBITDA increased 8% to NIS 1.014b and comparable net profit rose 44% to NIS 372m.

• Fiber, 5G and IP adoption advanced, with strategic investment focused on digital infrastructure, subsea cables, data centers and selective acquisitions.

Financial highlights

• Q3 reported net income fell to NIS 348m from NIS 446m; comparative net income was NIS 372m versus NIS 258m.

• Excluding cancellation of the Universal Fiber Fund provision, comparable EBITDA rose 5.2% and comparable net profit increased 36%.

• Q3 free cash flow was NIS 249m versus NIS 331m; 9M free cash flow rose to NIS 859m from NIS 823m.

• 9M core revenue grew 3%; comparable EBITDA increased 5.1% to NIS 2.92b and comparable net profit rose 27% to NIS 987m.

• Q3 comparable EBITDA margin was 46.7%, compared with 43.8% a year earlier.

Outlook and guidance

• 2026 guidance, raised in August, remains unchanged: comparable EBITDA of NIS 3.8–3.85b, comparable net profit of NIS 1.15–1.2b and gross CapEx of NIS 1.6b.

• 2029 targets include core revenue of NIS 8.7–8.9b, comparable EBITDA of NIS 4.2–4.4b and fiber coverage of ~3.5m homes.

• Pelephone targets 300,000 5G MAX subscribers by year-end 2026, versus 260,000 at the reporting date.

• Management said Q3 results exceeded expectations and kept the business on track to meet or exceed annual targets.