Q3 2025 Bezeq Israel Telecom Earnings Call
Speaker #1: Welcome, everyone, and thank you for joining us on Bezeq 2020 Five Third Quarter Learning Call. I'm Yochai Benita, CFO of the Bezeq Group. Joining us from the Senior Management Team today were Mr. Tomer Raved, Bezeq Chairman, Mr. Nir David, Bezeq's Fixed Line CEO, and Mr. Ilan Sigal, CEO of Pelephone NES.
Speaker #1: Before we start the call, I would like to direct your attention to the safe harbor statement on slide 2 of our presentation, which also applies to any statement made during today's call.
Speaker #1: We would like to inform you that this event is being recorded. Following the presentation of our results, we will have a Q&A session. With that said, let me now turn the call over to Tomer for his opening remarks.
Speaker #1: After his introduction, I will continue the presentation of our group's financial highlights followed by Nir, who will discuss Bezeq Fixed Line results, and Ilan, who will cover the results from Pelephone NES.
Speaker #1: I will conclude the presentation with Bezeq International results. Tomer, please.
Speaker #2: business
Speaker #3: We continue to deliver strong results in the third quarter. Reflecting the successful implementation of our multi-year strategy focused on the core actives and the acceleration infrastructure and acceleration investment in advanced infrastructure nationwide.
Speaker #3: Turning to slide 13, fixed line core revenues increased 2.2% to 991 million shekels, driven by higher revenues from transmission and data communication, broadband and cloud, and digital services.
Enabling us to better leverage, the potential of our fiber networks and to expand our customer base Nationwide.
Enabling us to better leverage, the potential of our fiber networks and to expand our customer base Nationwide.
On the following slides, we show Q3 financial highlights adjusted evida Rose 0.5% due to higher core revenues.
On the following slides, we show Q3 financial highlights adjusted evida Rose 0.5% due to higher core revenues.
Partially offset by lower telefon revenues.
Partially offered by lower telephony, revenues.
Adjusted. Net profit was down 10.5% to 214 million shekels, mainly due to higher depreciation and financing expenses. Free cash flow was down 3.1% mainly due to timing differences in working capital.
Adjusted. Net profit was down 10.5% to 214 million checks, mainly due to higher depreciation and financing expenses. Free cash flow was down 3.1% mainly due to timing differences in working capital.
Turning to the next slide, we show continuous fiber deployment, reaching.
Turn it to the next slide. We show continuous fiber deployment, reaching.
Our targets of 1 of 2.9 million homes passed have over 969,000 active subscribers in our fiber network.
Our targets of 1 out of 2.9 million homes passed with over 9,695.
Today.
Today, representing 65% of total Broadband subscribers and resulting in a take up.
Representing 65% of total Broadband subscribers and resulting in a take up.
Rate of 34%.
Rate of 34%.
Moving to the next to the next life. We show the take up trends.
Moving to the next slide, we show the take-up trends.
Brittle sub fiber. Take ups. Reach 616,000.
Retail subscriber, take ups. Reach 616,000 and also 5, take ups take up reached 355,000 today. 5 subscriber,
And also fiber take ups take up reached 355,000 today. Fiber subscriber
Representing 62%.
representing 62%.
Of total retail subscribers.
Of total retail subscribers.
tell me to the next life Broadband revenues were up 1.6% driven by
Coming to the next slide, broadband revenues were up 1.6%, driven by...
Growth in ARPU and fiber subscriber, transmission and data revenues growth.
4.7% to 310 million shekels, and cloud and digital revenues grow 5.7%, driven by higher revenues from virtual exchange and cloud services.
4.7% to 310 million shekels, and cloud and digital revenues grew 5.7%, driven by higher revenues from virtual exchange and cloud services. With that, I will now turn the call over to Elan to discuss telephone. Yes, thank you. Now moving to slides 18 and 19, telephone delivered strong quarterly financial results together with sustained growth across key performance indicators.
Service revenues grew 4.4%, reaching 381 million shekels, marking the highest stress service revenues in a decade.
Service revenues grew 4.4%, reaching 381 million shekels for the highest stress service revenues in a decade.
Adjusted Abida group, approximately 6% to 202 million shekels for the highest adjusted Abida in 2 years.
Adjusted EBITDA grew approximately 6% to 202 million shekels, marking the highest adjusted EBITDA in two years.
Revenue and profitability growth were driven by continued growth in postpaid subscribers, including 5G subscriber plans, as well as high roaming revenues.
Revenue and profitability growth were driven by continued growth in post-paid subscribers, including 5G subscriber plans, as well as high roaming revenues.
5G post-space subscriber plans grew by 333,000, reaching 1.36 million subscribers today.
Subscribers today.
5G. Max subscribers reached 115,000 today?
5 G, Max subscribers. Reach 115,000 today.
Moving to the next slide we show 5G post space, subscriber plans, reaching 1.36 million subscribers. As of today representing, 59% of postage subscribers, and Q3 service revenues showing consistent growth over the last few years.
Moving to the next slide we show 5G. Post subscriber plans, reaching 1.36 million subscribers as of today representing, 59% of postage subscribers, and Q3 service revenues showing consistent growth over the last few years.
The next slide shows Q3 key operational metrics. We posted the highest RPO in 6 years. Reaching 48, shekels up.
The next slide shows Q3 key operational metrics. We posted the highest RPO in 6 years. Reaching 48, shekels up.
4.3% of 2 shekels year-over-year.
4.3% of 2 shekels year-over-year.
To yes on slide 22. Yes has demonstrated consistent increase in revenues and subscribers along. With significant growth in all profitability metrics, which has have been driven by comprehensive efficiency and renewal initiatives and the completion of strategic transactions and measures. We undertook
To yes on slide 22. Yes has demonstrated consistent increase in revenues and subscribers along. With significant growth in all profitability metrics, which has have been driven by comprehensive efficiency and renewal initiatives and the completion of strategic transactions and measures. We undertook
Revenues increased 1.3% to 321 million shekels, due to higher revenues from the TV and fiber bundle.
Revenues increased 1.3% to ?321 million, due to higher revenues from the TV and fiber bundle.
Perform, my adjusted debit Aro, 69% to 59 million shekels driven by an improvement in operations, including growth in subscribers and revenues and the reduction in expenses resulting from the completion of transactions and strategic initiatives.
The, for my adjusted debit our row, 169% to 59 million shekels driven by an improvement in operations, including growth in subscribers and revenues, and the reduction in expenses resulting from the completion of transactions and strategic initiatives.
Total TV subscribers increased by 3,000 this quarter representing the highest quarterly increase in total subscribers since 2022.
Total TV subscribers increased by 3,000 this quarter representing the highest quarterly increase in total subscribers since 2022.
We processed quarterly growth with 12,000 net, fiber subscribers ads reaching 111,000 as of today.
We posted quarterly growth with 12,000 net. Fiber subscribers adds reach reaching 111,000 as of today.
Moving to the next slide, perform my adjusted net loss improved by 97% due to higher revenues and streaming of expenses. Streamlining of expenses on the next slide would like to highlight that this is the second consecutive quarter with the sequential increase in total TV subscribers. Our proposal is 2 shekels year-over-year growth due to higher revenues from the fiber plans.
Moving to the next slide, perform my adjusted net loss improved by 97% due to higher revenues and streaming of expenses. Streamlining of expenses on the next slide would like to highlight that this is the second consecutive quarter with the sequential increase in total TV subscribers. Our proposal is 2 shekels year-over-year growth due to higher revenues from the fiber plans.
We should continue growth in IP subscribers, reaching 489,000 today, representing 86% of total subscribers.
We should continue growth in IP subscribers, reaching 489,000 today, representing 86% of total subscribers.
With that. Let me now turn the call back to you. Hi thanks. An
With that, let me now turn the call back to you. Hi, thanks. An
Um, moving on to basic International and on slide 205 ICT, businesses revenues, grew 8.7% to 281 million Checkers, mainly due to higher revenue from the sale of business equipment, as well as Cloud activity. As a result, profitability metrics grew with adjusted. Evita up to 2.6% and adjusted net profit up to 14.3% to 60 million checks. We are continuing with our streamlining plan, including the implementation of