Bezeq’s Positive Earnings Call Highlights Growth

Bezeq The Israel Telecommunication Corp ((IL:BEZQ)) has held its Q3 earnings call. Read on for the main highlights of the call.

The recent earnings call of Bezeq The Israel Telecommunication Corp presented a generally positive outlook, highlighting significant strategic milestones and robust growth in financial metrics. Despite facing some challenges with free cash flow and operating expenses, the company remains well-positioned in key markets and is poised for future growth.

Completion of Network Deployment

Bezeq successfully reached its target of passing 2.9 million homes, completing its network deployment across most of Israel. This significant milestone is expected to lead to a decrease in capital expenditures starting in 2026, marking a pivotal moment in the company’s strategic planning.

Strong Financial Performance

The company reported a growth of nearly 2% in core revenues, which now represent 93% of total revenue. Additionally, adjusted EBITDA grew by 4%, excluding the impact of the yes valuation, underscoring the company’s healthy financial standing.

Growth in Key Performance Indicators

Bezeq reported substantial growth in its key performance indicators, with total fiber subscribers reaching 969,000 and 5G subscriber plans hitting 1.36 million. Furthermore, cellular ARPU saw an increase of over 4%, reflecting strong demand and customer engagement.

Significant Growth in Adjusted Net Profit

The company experienced a 56% growth in adjusted net profit, driven by the increased valuation of yes. Excluding this impact, net profit still rose by 0.1%, indicating solid financial health.

Increased Investor Interest

Bezeq’s improved macroeconomic environment and strong performance have sparked growing interest from investors across Israeli, European, and U.S. capital markets, highlighting the company’s appeal as a promising investment opportunity.

Free Cash Flow Impacted

The company’s free cash flow was affected by a tax assessment paid by Bezeq Fixed Line in Q1 2025, along with a tax refund received in the corresponding period, illustrating some of the financial challenges faced.

Operating Expenses Challenges

Operating expenses were impacted by higher provisions for legal claims and employee retirement at Bezeq Fixed Line, presenting a challenge in managing operational costs.

Decline in Fixed-line Telephony Revenues

Adjusted net profit for Fixed-line services declined by 10.5% to NIS 214 million, primarily due to higher depreciation and financing expenses, indicating a need for strategic adjustments in this segment.

Forward-looking Guidance

During Bezeq’s 2025 Third Quarter Earnings Call, the company provided a range of forward-looking guidance metrics. Bezeq anticipates stable growth across its business segments and expects a gradual decrease in CapEx starting in 2026. The company forecasts an adjusted EBITDA of NIS 3.85 billion, an adjusted net profit of NIS 1.45 billion, and CapEx of NIS 1.75 billion for 2025. Bezeq’s strategic focus remains on leveraging its position in fiber and 5G, while also preparing for potential regulatory changes.

In summary, Bezeq The Israel Telecommunication Corp’s earnings call conveyed a positive sentiment, with significant achievements in network deployment and financial performance. Despite some challenges, the company is strategically positioned for future growth, attracting increased investor interest and maintaining a strong focus on its core business segments.