Bezeq The Israeli Telecommunication (BEZQ) Q4 2025 earnings summary

Executive summary

• Core revenues grew 3.0% year-over-year to NIS 7.96 billion, driven by strategic growth areas and subscriber expansion, with over one million fiber customers and leadership in fiber deployment.

• Pelephone achieved its strongest year in a decade, yes completed a financial turnaround, and both saw significant ARPU growth.

• Launched first-ever share buyback program alongside an 80% net profit dividend policy, with total shareholder remuneration recommended at NIS 700 million.

• Maintained high service availability and operational continuity during regional hostilities, underscoring infrastructure resilience.

• Strategic focus on digital infrastructure, operational excellence, and AI-driven growth through 2029.

Financial highlights

• Core revenues grew 3% to nearly NIS 8 billion, representing 92% of total revenues; group revenues reached NIS 7.96 billion.

• Adjusted EBITDA up 7.8% to over NIS 4 billion; comp EBITDA up 1.5% to NIS 3.74 billion; adjusted net profit up 31% to NIS 1.66 billion; comp net profit down 2.2% to NIS 1.09 billion.

• Free cash flow totaled NIS 1.13 billion, impacted by tax assessments and refunds; CapEx down 3.7% to NIS 1.68 billion.

• Net debt at NIS 5 billion; net debt/Adjusted EBITDA ratio of 1.4x; AA local credit rating maintained.

• Dividend and buyback distributions for 2025/2026 recommended at NIS 700–975 million.

Outlook and guidance

• 2026 outlook: comp EBITDA NIS 3.7–3.8 billion, comp net profit NIS 1.0–1.1 billion, CapEx NIS 1.6 billion.

• 2029 targets: core revenues NIS 8.7–8.9 billion, comp EBITDA NIS 4.2–4.4 billion, CapEx NIS 1.5–1.6 billion, comp net profit NIS 1.3–1.4 billion.

• Free cash flow growth above 10% CAGR and comp net profit growth over 8% CAGR through 2029.

• Operational targets for 2029: 3.5 million homes passed with fiber, 43% take-up, and over 85% of mobile postpaid on 5G.