Bezeq The Israel Telecommunication (BEZQ) Q2 2026 earnings summary

Executive summary

• Core revenues grew 4% year-over-year to over NIS 2 billion, with growth across all key segments including fiber, 5G, and TV.

• Comparable EBITDA increased 6.2% to NIS 978 million and comparable net profit surged 38% to NIS 315 million, driven by higher revenues and lower operating and financing costs (adjusted for Yes valuation changes).

• Dividend of NIS 415 million and new NIS 100 million share buyback announced as part of an NIS 800 million multi-year program.

• Fiber network deployment surpassed 3 million homes, with a 17% increase in fiber subscribers and a 12% rise in 5G plans; retail broadband ARPU up 4.4% to NIS 142.

• Strategic focus on digital infrastructure, including submarine cable projects, international expansion, and M&A to reinforce market position.

Financial highlights

• Q2 2026 revenues reached NIS 2.165 billion, with core revenues at NIS 2.03 billion (94% of group revenues).

• Comparable EBITDA margin improved to 45.2% for Q2 2026.

• Free cash flow for H1 2026 totaled NIS 610 million, up from NIS 492 million year-over-year; Q2 free cash flow was NIS 155 million.

• Net debt increased to NIS 5.22 billion, with a net debt to Comparable EBITDA ratio of 1.6x.

• Dividend payout ratio at 80% of H1 2026 net profit.

Outlook and guidance

• 2026 outlook unchanged: Comparable EBITDA NIS 3.7–3.8 billion, Comparable Net Profit NIS 1.0–1.1 billion, CapEx NIS 1.6 billion.

• 2029 targets: Core revenues NIS 8.7–8.9 billion, Comparable EBITDA NIS 4.2–4.4 billion, CapEx NIS 1.5–1.6 billion, Comparable Net Profit NIS 1.3–1.4 billion, FCF after leases NIS 1.3–1.4 billion.

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

• Confident in achieving guidance, with no expected softness in H2; will update market if deviation exceeds 10%.

• Subsea cable projects, structural separation, and M&A are not included in 2029 forecast, representing potential upside.