Bezeq The Israel Telecommunication (BEZQ) Q1 2026 earnings summary

Executive summary

• Core revenues grew 2.6% year-over-year to over NIS 2.03 billion, driven by growth in Fixed-Line, yes, and International segments, with Comp Net Profit up 4.2% to NIS 300 million.

• Free cash flow surged 74% year-over-year to NIS 455 million, mainly due to a tax refund, working capital improvements, and enhanced core activities.

• Fiber infrastructure reached 3 million households, with 1.04 million active subscribers and a 35% take-up rate, positioning the group as a digital backbone.

• Subscriber growth included a 19% increase in fiber subscribers and 12% growth in 5G subscriber plans; ARPU increased 4% for retail broadband and 7% for yes.

• Significant dividend distribution of NIS 549 million and initiation of a NIS 150 million share buyback program, with 50% completed.

Financial highlights

• Q1-2026 core revenues reached NIS 2.03 billion, representing 94% of group revenues.

• Comp EBITDA was NIS 928 million with a margin of 43%, up 1.2% year-over-year.

• Comp Net Profit totaled NIS 300 million, up 4.2% year-over-year.

• Free cash flow was NIS 455 million, up 74% year-over-year, driven by tax refund and improved operations.

• Net debt reduced by NIS 122 million to NIS 4.57 billion; net debt to Comp EBITDA at 1.4x.

Outlook and guidance

• 2026 outlook unchanged: Comp EBITDA expected at NIS 3.7–3.8 billion, Comp Net Profit at NIS 1.0–1.1 billion, CapEx at 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, Net Profit NIS 1.3–1.4 billion.

• Expect continued ARPU growth as fiber take-up rises and customers migrate from copper.

• Free cash flow expected to grow double digits annually, supporting flexibility for M&A and further investments.