Bezeq The Israeli Telecommunication (BEZQ) Q1 2025 earnings summary

Executive summary

• Core revenues grew 2.4% year-over-year to NIS 1.98 billion, driven by Bezeq Fixed-Line and Pelephone segments.

• Adjusted net profit increased 6.7% to NIS 319 million, supported by lower impairment loss in yes.

• Strategic growth areas saw strong momentum: fiber take-up up 36%, 5G subscriber plans up 18%, retail broadband ARPU up 6%, and IPTV subscribers up 15%.

• Upgraded 2025 guidance for adjusted net profit and EBITDA following the yes-Partner TV deal.

• Progress on regulatory reforms, including copper network switch-off and steps toward structural separation.

Financial highlights

• Adjusted EBITDA reached NIS 914 million with a margin of 40.9%.

• Free cash flow was NIS 262 million, down 44% due to tax assessments and timing differences.

• Net debt stood at NIS 4.7 billion with a net debt/EBITDA ratio of 1.4x; credit ratings reaffirmed.

• Dividend of NIS 392 million (NIS 0.14 per share) distributed in May 2025, in line with the 80% payout policy.

• CapEx increased 2.2% to NIS 419 million.

Outlook and guidance

• 2025 guidance: Adjusted EBITDA of NIS 3.75 billion, adjusted net profit of NIS 1.32 billion, CapEx of NIS 1.75 billion, and fiber deployment to 2.9 million households.

• CapEx expected to decrease after fiber deployment completion; 5G investments to continue.

• Commitment to maintain high AA credit rating and financial stability.

• Ongoing focus on top-line and free cash flow growth, leveraging advanced network and AI solutions.