Q2 2025 Bezeq Israeli Telecommunication Corp Ltd Earnings Call Transcript
Key Points
- Bezeq The Israeli Telecommunication Corp Ltd (BZQIF) reported a mid-single-digit growth in ARPU across all services, leading to a 3% growth in core revenues.
- The company achieved double-digit growth in adjusted EBITDA and adjusted net profit, positively impacted by the write-off at yes due to the partner TV deal.
- There was a significant increase in total broadband retail subscribers, driven by accelerated fiber deployment and enhanced customer value.
- Bezeq The Israeli Telecommunication Corp Ltd (BZQIF) upgraded its 2025 outlook, now expecting adjusted EBITDA of ILS3.85 billion and adjusted net profit of ILS1.45 billion.
- The company is exploring potential synergistic acquisitions, including Exelera Telecom and HOT Mobile, to identify future growth engines.
- Adjusted net profit for the Fixed Line operations was down 8.1% due to higher financial expenses resulting from the dollar-shekel exchange rate impact on hedging transactions.
- The war with Iran impacted Pelephone's adjusted EBITDA and adjusted net profit, as well as increased frequency fees due to the termination of the MOC discount period.
- Bezeq International's adjusted EBITDA was down due to lower revenue from consumers, despite growth in business revenues.
- The company faced higher financing expenses this quarter, attributed to hedging against the change in the Israeli shekel versus the dollar.
- Legacy high-margin revenue is declining, which will continue to impact EBITDA, despite the company's efforts to improve its OpEx profile.
Welcome, everyone, and thank you for joining us on Bezeq 2025 second-quarter earnings call. I'm Yohai Benita, 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 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 Fixed Line results, and Ilan, who will cover the results from Pelephone and yes. I will conclude the presentation with Bezeq International results.
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