Bezeq Raises 2026 Profit Forecast Ahead of Structural Separation Decision

Bezeq, led by CEO Nir David and Chairman Tomer Rabed, has upgraded its financial outlook for 2026 following improved business performance. The company raised its net profit forecast to a range of 1.15 to 1.2 billion shekels, up from the previous estimate of 1 to 1.1 billion shekels published in March. This represents a 9.1% increase at the upper end and a 15% rise at the lower end of the forecast. Additionally, Bezeq updated its adjusted EBITDA forecast to between 3.8 and 3.85 billion shekels, compared to the earlier range of 3.7 to 3.8 billion shekels. However, the company kept its capital expenditure (CAPEX) forecast steady at approximately 1.6 billion shekels, covering investments in fixed assets and intangible assets.

The forecast revision reflects stronger business results but does not factor in potential impacts from the awaited decision by the Ministry of Communications regarding the cancellation of Bezeq's structural separation. This separation currently requires Bezeq to maintain operational and managerial independence from its subsidiaries, including yes, across management, employees, assets, and commercial information. The cancellation could enable Bezeq to consolidate activities and realize synergies, potentially facilitating a merger of yes into Bezeq. Bezeq has been advocating for this change for over a decade, but the obligation remains embedded in its license for now.

In a recent investor call on August 5, Chairman Rabed stated that the process to end the structural separation is "close to completion," expressing confidence that a regulatory decision will be made in the coming weeks.