Q4 2024 Bezeq Israeli Telecommunication Corp Ltd Earnings Call Transcript
Key Points
- Bezeq The Israeli Telecommunication Corp Ltd (BZQIF) successfully implemented its group strategy, with significant progress in fiber deployment, nearing 90% completion.
- The company reported a 43% increase in fiber take-up and a 20% growth in 5G subscriber plans, indicating strong demand for its services.
- Pelephone, a subsidiary, is leading the 5G revolution in Israel, contributing positively to ARPU growth.
- Bezeq The Israeli Telecommunication Corp Ltd (BZQIF) maintained a strong balance sheet, upgraded its credit rating to AA, and increased its dividend payout policy to 80%, reflecting a yield of over 5%.
- The company achieved a 1.3% growth in core revenue for 2024, driven by growth in Pelephone and Fixed-Line services, despite geopolitical challenges.
- Adjusted EBITDA and adjusted net profit were down by almost 2% and 3%, respectively, due to decreased telephony revenues and the impact of the war on roaming revenues.
- The company faced a decrease in telephony revenues due to the Ministry of Communications' tariff reduction.
- Bezeq International's revenues and profitability were impacted by lower consumer ISP revenues and ILD revenues.
- The company experienced a 4% decrease in operating expenses due to lower subcontractor and employee expenses, indicating potential cost-cutting measures.
- Despite growth in core revenues, the adjusted EBITDA growth guidance is conservative, reflecting challenges in maintaining profitability amidst declining high-margin revenue streams like telephony and ISP.
Welcome, everyone, and thank you for joining us on Bezeq's 2024 fourth-quarter and full-year earnings call. I am Tobi Fischbein, CFO of the Bezeq Group. Joining us from the senior management team today, we have Mr. Tomer Raved, Bezeq's Chairman; Mr. Nir David, Bezeq's Fixed-line CEO; and Mr. Ilan Sigal, CEO of Pelephone and yes.
Before we start the call, I would like to direct your attention to the Safe Harbor Statement on slide 2 of our 2024 investor presentation, which also applies to any statement made during today's call. We would like to inform you that this event is being recorded.
Following the presentation of our results, we will have a Q&A session. With that said, let me now turn the call over to Tomer for his opening remarks. After his introduction, I will continue the presentation of our group's financial highlights; followed by Nir, who will discuss Bezeq's Fixed-Line results; and Ilan, who will cover the results from Pelephone and yes. I will
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