Bezeq The Israeli Telecommunication (BEZQ) Q3 2025 earnings summary

Executive summary

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

• Adjusted EBITDA increased 13.8%–14% to NIS 1.04 billion, and adjusted net profit rose 56% to NIS 482 million, mainly due to yes valuation adjustment.

• Net profit increased 59% to NIS 446 million; retail broadband ARPU rose 4%; fiber subscribers up 26% to 969,000, with a 34% take-up rate.

• Fiber deployment reached 2.9 million homes, completing a major network milestone and preparing for future AI-driven demand.

• Regulatory progress made toward removing structural separation, with public comments solicited by the Ministry of Communications.

Financial highlights

• Q3 2025 revenues: NIS 2.145 billion, down 4% year-over-year; core revenues: NIS 1.995 billion, up 1.7%.

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

• Net profit: NIS 446 million, up 59%; adjusted net profit: NIS 482 million, up 56%.

• Free cash flow for Q3 was NIS 331 million, down 9.3% year-over-year, affected by tax assessment and working capital timing.

• Net debt stands at NIS 4.6–4.65 billion, with a net debt/EBITDA ratio of 1.3x.

Outlook and guidance

• 2025 guidance unchanged: targeting adjusted EBITDA of NIS 3.85 billion, adjusted net profit of NIS 1.45 billion, CapEx of NIS 1.75 billion, and fiber deployment of 2.9 million homes.

• Expecting gradual CapEx decrease from 2026 as network deployment completes.

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

• Midterm KPI targets include at least 40% fiber take-up and consistent output growth across all verticals.