Bezeq The Israeli Te Stock Earnings Reports

Bezeq Group reported a strong Q1 with revenue and profitability growth across the portfolio, driven by fiber deployment, rising ARPU, 5G adoption and improved free cash flow. Core revenue grew 2.6% to >ILS 2bn, comparable EBITDA and net profit increased, and free cash flow jumped 74% (partly due to a tax refund and working capital changes). Fixed line reached 3 million homes passed with 35% take-up and retail broadband ARPU of ILS 139. Pelephone showed robust subscriber additions and 5G penetration (61% of postpaid), though roaming declines from the war reduced mobile ARPU; Pelephone targets 300k 5G Max subs by year-end. yes returned to profitability with revenues up 7.5% and record ARPU of ILS 202, while Bezeq International posted double-digit growth from cloud and enterprise services. Net debt fell to ILS 4.6bn (net debt / EBITDA 1.4x); AA rating reaffirmed. Management reiterated 2026 outlook and 2029 targets, announced an ILS 549m dividend (80% of H2 2025 net profit) and a ILS 150m buyback (≈50% completed). Management emphasized strategic initiatives: continued fiber and 5G roll-out, subsea cable projects to position Israel as a regional digital hub, expectation of regulatory change to lift structural separation, and ongoing focus on cost discipline and shareholder returns.