Bezeq Group Reports 38% Profit Surge in Q2 2026, Declares 415 Million Shekel Dividend

Bezeq Group announced a 1.4% rise in revenues for the second quarter of 2026, reaching 2.17 billion shekels compared to the same period last year. Core revenues, excluding legacy copper-based telephony and internet services, grew by 4% to 2.03 billion shekels. Net profit, adjusted for a one-time valuation gain recorded by Yes in Q2 2025, increased by 37.6% to 315 million shekels. EBITDA rose by 6.2% to 978 million shekels. Capital expenditures are expected to decline by 4.8% to approximately 1.6 billion shekels this year, following the completion of major fiber optic rollout projects, which now cover 3.03 million households, a 9.2% increase.

The board recommended distributing a dividend of about 415 million shekels (15 agorot per share) and approved a 100 million shekel share buyback program. Bezeq chairman Tomer Rabid highlighted the company’s strategic national role amid turbulent times and noted the company’s transition to profitability, especially with Yes achieving real profits after many years.

Segment results showed fixed-line revenues of 1.11 billion shekels (up 1.1%), operating profit of 408 million shekels (up 5.7%), and net profit of 256 million shekels (up 17.4%). Internet subscribers slightly declined by 0.3% to 1.47 million, but fiber subscribers surged 17% to 1.06 million, with average revenue per subscriber rising 4.4% to 142 shekels monthly. Telephony subscribers fell 4.2% to 1.29 million. Bezeq International reported revenues of 276 million shekels (up 4.9%), operating profit of 9 million shekels (up 12.5%), and net profit doubling to 12 million shekels.

CEO Nir David emphasized growth driven by communications, cloud, digital, and AI sectors, noting AI tools help reduce costs and improve network reliability. Pelephone’s revenues increased 3% to 511 million shekels, operating profit rose 4.7% to 45 million shekels, and net profit grew 13.3% to 34 million shekels. Subscribers increased 2.34% to 2.71 million, with 5G premium subscribers tripling to 204,000, although average revenue per subscriber fell 2.2% to 45 shekels.

Yes revenues rose 8.8% to 348 million shekels, but operating profit dropped 90.2% to 19 million shekels and net profit fell 93% to 12 million shekels due to the absence of a one-time valuation gain from the previous year. Yes’s subscriber base grew slightly to 563,000, with 90% on IP-based services. Average revenue per TV subscriber declined 5.2% to 163 shekels, while revenue per Yes double/triple-play subscriber increased 7.9% to 204 shekels. Pelephone CEO Ilan Sigal noted the company’s technological leadership and investments in 5G network expansion. Yes has shifted away from traditional satellites, adopting a smaller satellite solution that saves 70 million shekels annually, contributing to improved profitability in recent quarters.