Q1 2026 Bezeq Israeli Telecommunication Corp Ltd Earnings Call Transcript
Key Points
- Bezeq The Israeli Telecommunication Corp Ltd (BZQIF) recorded a 74% growth in free cash flow in the first quarter, driven by a tax refund, changes in working capital, and improved call activity.
- The company achieved a significant milestone by deploying fiber infrastructure to 3 million households, establishing itself as Israel's digital backbone.
- Core revenue grew by 2.6% to over ILS2 billion, with comparable EBITDA increasing by 1.2% and net profit by over 4%.
- Bezeq The Israeli Telecommunication Corp Ltd (BZQIF) is advancing several new subsea cable projects to Europe, positioning Israel as a regional and global digital hub.
- The company plans to pay a cash dividend of ILS549 million and has initiated a share buyback plan of ILS150 million, demonstrating strong shareholder remuneration.
- Pelephone's revenues, comp EBITDA, and comp net profit were negatively impacted by a decline in roaming revenues due to the war with Iran.
- There is a slowdown in the growth of retail Internet ARPU, with concerns about the impact of reduced Be router sales.
- Fixed line retail broadband subscribers decreased in Q1, despite an overall increase in Bezeq Group retail broadband subscribers.
- The company faces competitive dynamics in the fixed segment, with aggressive pricing from competitors potentially impacting operations.
- There are ongoing regulatory challenges, with Bezeq The Israeli Telecommunication Corp Ltd (BZQIF) awaiting a decision on the removal of structural separation to operate as a more efficient group.
Welcome, everyone, and thank you for joining us on Bezeq's first-quarter earnings call. We first apologize for the inconvenience. Due to technical difficulties, we are hosting one call in English today. (Event Instructions)
I am Yohai Benita, CFO of the Bezeq Group. Joining me today are Mr. Tomer Raved, Bezeq Executive Chairman; Mr. Nir David, CEO of Bezeq Fixed Line; and Mr. Ilan Sigal, CEO of Pelephone and yes.
Before we begin, please review the safe harbor statement on slide 2 of our presentation, which applies to any statement made during today's call.
Following our prepared remarks, we will open the call for Q&A.
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 conclude the presentation with Bezeq International.
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