Yes revaluation boosts Bezeq's results

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Telecommunications group Bezeq has reported a positive third quarter, with a 1.7% rise in core revenue to NIS 2 billion and a 13.8% rise in adjusted EBITDA to over NIS 1 billion. Group net profit was NIS 446 million, and free cash flow totaled NIS 331 million. The group’s net debt fell from NIS 4.73 billion at the end of the corresponding quarter to NIS 4.65 billion at the end of the current quarter.

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The Bezeq group comprises Bezeq’s fixed-line services, mobile telephony unit Pelephone, television company Yes, and Bezeq International. The group benefitted from a revaluation of Yes, which had a positive impact on adjusted EBITDA, but Bezeq points out that, even without this accounting gain, adjusted EBITDA grew by 4%, in line with estimates. According to the revised valuation, Yes’s business is worth NIS 480 million. The group therefore recognized the cancelation of a NIS 185 million loss on a previous valuation.

Bezeq’s guidance for 2025 remains unchanged. It expects to post an adjusted net profit of NIS 1.4 billion, adjusted EBITDA of NIS 3.85 billion, and capital expenditure of NIS 1.75 billion. The company estimated in the past that it would reach 2.9 million households with fiber-optic cable. That target has been reached, which is expected to lead to a reduction in capital expenditure in 2026, a rise in free cash flow, and a positive impact on the company’s dividend.

Bezeq CEO Nir David said, "Bezeq continues to present strong results, reflecting successful implementation of its strategy. In roll-out of fiber-optic cable, we have reached a peak of 2.9 million households connected, with almost 970,000 customers today, representing a take-up rate of 34%. Core revenue is rising consistently, and there is a substantial improvement in ARPU, which has grown by NIS 5 to NIS 136. The rate of progress is good, and customers are switching to smart solutions and fiber-optic infrastructure."

David mentioned the agreement signed recently with Gilat Satellite Networks which will assist in exploitation of the potential of the fiber-optic network and expanding the customer base, and added that he was satisfied with the performance and achievements in the quarter.

Published by Globes, Israel business news - en.globes.co.il - on November 11, 2025.