Bezeq Reports Strong Profit Growth Driven by Yes, Despite Internet Customer Decline
Translated & summarized from Ice by baba
Bezeq Group reported a 44% surge in net profit to NIS 372 million for Q3 2026, driven by strong performance from its TV subsidiary Yes and reduced expenses. Yes achieved its highest profit in a decade, while Bezeq Fiber and Pelephone also saw profit increases. However, the company experienced a decline in retail internet customers, losing 48,000 subscribers in the past year. Bezeq maintained its annual profit forecast of NIS 1.15-1.2 billion.
The story in 5 lines · by baba
- Bezeq Group's Q3 2026 net profit rose 44% to NIS 372 million, with revenues up 1.2% to NIS 2.17 billion.
- Yes, Bezeq's TV unit, reported its highest profit in a decade, with revenues up 15% and EBITDA up 51%.
- Bezeq lost 48,000 retail internet customers in the past year, reducing its base to 942,000.
- Bezeq Fiber's net profit increased 32% to NIS 283 million, and Pelephone's profit rose 19% to NIS 44 million.
- The company maintained its full-year 2026 adjusted net profit forecast at NIS 1.15-1.2 billion.
Bezeq Group announced robust financial results for the third quarter of 2026, showcasing a significant improvement in profitability despite modest revenue growth. The group's revenues reached NIS 2.17 billion, a 1.2% increase compared to the same period last year, while net profit surged by 44% to NIS 372 million. For the first time, Bezeq's adjusted EBITDA surpassed NIS 1 billion in a quarter, rising 8% and representing 46.7% of total revenues, up from 43.8% in the prior year's quarter. This improvement is attributed to increased revenues, reduced operating expenses, and lower financing costs.
A notable development in the financial reports is the turnaround at Yes, Bezeq's television subsidiary. Yes saw its revenues grow by 15% and its adjusted EBITDA jump by 51%. The company shifted from a net loss of NIS 1 million to a profit of NIS 36 million, its highest in a decade. This growth was fueled by sales of bundled TV and fiber optic packages, a deal with Partner, and international content sales.
Other Bezeq subsidiaries also performed well. Bezeq Fiber recorded a 32% increase in adjusted net profit to NIS 283 million, and Pelephone showed a 19% rise to NIS 44 million. Pelephone recently signed an agreement to acquire Wecom, pending regulatory approval.
However, the results were not entirely positive. Bezeq's retail internet customer base decreased by 48,000 over the past year, falling to 942,000. Despite an increase in average monthly revenue per customer from NIS 136 to NIS 142, revenues from Bezeq Fiber's internet operations declined by 2.2%. Additionally, the group's free cash flow dropped by 25% in the quarter, primarily due to changes in Pelephone's working capital and employee retirement-related payments.
Despite the strong quarterly performance, Bezeq did not revise its annual profit forecast upwards. The group expects to finish 2026 with an adjusted net profit between NIS 1.15 billion and NIS 1.2 billion, having already achieved NIS 987 million in the first nine months. Bezeq's stock, valued at approximately NIS 19 billion, saw a 1.2% increase in the past week, a 6.2% decrease over the last month, and a 1.06% rise since the beginning of the year.
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