Bezeq The Israel Telecommunication Corp. Ltd. · TASE:BEZQ
Bezeq The Israel Telecommunication — Q2 2024 Earnings Presentation
32 slides from Bezeq The Israel Telecommunication's earnings presentation, 2024
Slide 1: Bezeq Group Q2-2024 Investor Presentation
Bezeq Group Q2-2024 Investor Presentation
Slide 2: Forward-Looking Information and Statement (Disclaimer)
Forward-Looking Information and Statement (Disclaimer) This presentation contains general data and information as well as forward looking statements about Bezeq - The Israeli Telecommunications Corp., Ltd. (“Bezeq”). Such statements, along with explanations and clarifications presented by Bezeq’s re
Slide 3: Bezeq Group | Q2-2024 Summary
Bezeq Group | Q2-2024 Summary Continued growth in strategic drivers – Bezeq’s board of directors 64% increase in fiber take-up, 6% in recommended a semi-annual retail broadband ARPU and 28% in 5G dividend distribution of NIS 407 subscriber plans million, NIS 0.15 per share Launch of electricity supp
Slide 4: Bezeq Group | Q2-2024 Summary
Bezeq Group | Q2-2024 Summary Core Revenues(1) Adj. EBITDA(2) Adj. Net Profit(2) NIS 1.9 billion NIS 910 Adjusted EBITDA margin of 41.5% million NIS 292 million 0.9% 7.8% 17.5% Free Cash Flow Decrease in Net Debt NIS 178 million NIS 395 million 25.2% 7.3% (1) Total Group revenues excluding Bezeq Fix
Slide 5: Bezeq Group | Q2-2024 Summary (Cont'd)
Bezeq Group | Q2-2024 Summary (Cont’d) Fiber Net Adds Retail Broadband ARPU Cellular subscribers Cellular ARPU (3) Revenues 59k NIS 129 2.62 million NIS 44 NIS 316 million (retail and wholesale) (2) 5.7% 0.8% 2.2% 6.0% 5G subscriber plans TV subscribers Fiber Subscribers Homes Passed 1.2m (1) Cellul
Slide 6: Bezeq's Compass | Technological & Business Roadmap
Bezeq’s Compass | Technological & Business Roadmap Migration to fiber Transition to 5G Migration to IP 2020 Launch of fiber project 5G Tender Award Satellite to IP migration • 2.36m homes passed • 716k subscriber take-up (retail + wholesale) • Over 1.2m subscribers Today • 30% take-up rate (52% of p
Slide 7: Bezeq Group | Q2-2024 Key Financial Highlights
Bezeq Group | Q2-2024 Key Financial Highlights | NIS million Revenues Adjusted EBITDA (1) Adjusted Net Profit (1) 0.9%(3) 7.8% 17.5% 2,299 987 974 920 917 910 2,265 2,231 2,255 2,192 354 357 344 287 278 272 254 296 299 292 1,955 1,978 1,953 1,983 1,938 43% 43% 41% 41% 42% Q2-2023 Q3-2023 Q4-2023 Q1-
Slide 8: Bezeq Group | H1-2024 Key Financial Highlights
Bezeq Group | H1-2024 Key Financial Highlights | NIS million Revenues Adjusted EBITDA (1) Adjusted Net Profit (1) 0.6%(3) 5.0% 12.4% 1,923 1,827 675 4,607 4,447 591 709 526 3,898 3,921 42%43% 41% 43% 41%41% 41% 41% H1-2023 H1-2024 H1-2023 H1-2024 H1-2023 H1-2024 Fixed-line telephony, Pelephone inter
Slide 9: Bezeq Group | Key Operational Metrics
Bezeq Group | Key Operational Metrics ARPU (NIS) Subscribers (end of period, in thousands) 185 182 175 173 174 2,593 2,618 2,618 2,611 2,615 124 125 127 129 122 1,473 1,454 1,442 1,419 1,409 1,028 1,029 1,028 1,019 1,014 45 47 42 43 44 579 576 574 571 567 39 34 33 33 33 477 471 467 470 472 Q2-2023 Q
Slide 10: Bezeq Group | Financial Debt
Bezeq Group | Financial Debt Financial Debt (NIS billion) Decrease in net debt 2.5 16 .0 1.6 1.6 1.6 1.6 2.0 • Decrease of NIS 395 million, or 7% y-o-y to NIS 5 billion 1.4 14 .0 12 .0 1.5 10 .0 7.7 7.7 8.1(1) 7.9 7.0 1.0 Net debt/Adjusted EBITDA ratio – 1.6 8. 0 2.3 2.9 0.5 6. 0 2.7 1.8 3.3 0.0 4.
Slide 11: Bezeq Fixed-Line | Q2-2024 Summary
Bezeq Fixed-Line | Q2-2024 Summary Fixed-Line core revenues(1) decreased 1.8% Fiber network homes passed to NIS 937 million, mainly due to lower reached 2.36m with 716k revenues from infrastructure projects, take-up (30%)(2) partially offset by higher revenues from broadband services and transmissio
Slide 12: Bezeq Fixed-Line | Q2-2024 Key Financial Highlights
Bezeq Fixed-Line | Q2-2024 Key Financial Highlights | NIS million Revenues Adjusted EBITDA (1) Adjusted Net Profit (1) 1.8% (2) 7.0% 12.0% 1,130 1,084 1,087 1,091 1,075 681 646 637 649 633 267 176 148 144 143 138 252 243 258 235 954 936 943 948 937 60% 60% 59% 60% 59% Q2-2023 Q3-2023 Q4-2023 Q1-2024
Slide 13: Bezeq Fixed-Line | H1-2024 Key Financial Highlights
Bezeq Fixed-Line | H1-2024 Key Financial Highlights | NIS million Revenues Adjusted EBITDA (1) Adjusted Net Profit (1) 0.1% (2) 4.0% 5.4% 2,241 2,166 1,335 1,282 521 493 358 281 1,883 1,885 59% 60% 60%60% 59% 59% H1-2023 H1-2024 H1-2023 H1-2024 H1-2023 H1-2024 Core Revenues) 3( Telephony % - Adjuste
Slide 14: Bezeq Fixed-Line | Q2-2024 Broadband Internet
Bezeq Fixed-Line | Q2-2024 Broadband Internet Broadband Revenues (NIS m) Retail Broadband Lines (Thousands) • Continued increase in fiber 1.9% 1.4% take-up 1,028 1,029 1,028 1,019 1,014 • Continued growth in broadband retail ARPU, 485 489 494 501 494 10 00 positively impacted by 289 335 367 90 0 407
Slide 15: Bezeq Fixed-Line | Fiber Take-Up – Retail and Wholesale
Bezeq Fixed-Line | Fiber Take-Up – Retail and Wholesale Retail Fiber – Net Adds (Thousands) Wholesale Fiber – Net Adds (Thousands) 43 46 36 40 30 27 30 32 35 24 Q2-2023 Q3-2023 Q4-2023 Q1-2024 Q2-2024 Q2-2023 Q3-2023 Q4-2023 Q1-2024 Q2-2024 Total Retail Fiber Take-Up (Thousands) Total Wholesale Fibe
Slide 16: Bezeq Fixed-Line | Continued Fiber Deployment and Take-Up Focus
Bezeq Fixed-Line | Continued Fiber Deployment and Take-Up Focus Total Fiber Net Adds (thousands, Retail and Wholesale) Homes Passed (thousands) 82 1,970 2,070 2,191 2,312 2,363 73 70 1,835 59 59 Q2-2023 Q3-2023 Q4-2023 Q1-2024 Q2-2024 Q2-2023 Q3-2023 Q4-2023 Q1-2024 Q2-2024 As of reporting date Tota
Slide 17: Bezeq Fixed-Line | Data, Telephony, Cloud & Digital Revenues
Bezeq Fixed-Line | Data, Telephony, Cloud & Digital Revenues | NIS million Transmission & Data Cloud & Digital • Continued growth in revenues from transmission and data 1.4% 2.2% communications, partially offset by a 289 290 298 298 293 decrease in traffic revenues from ISP 89 87 86 87 87 companies
Slide 18: Bezeq Fixed-Line | Operating Expenses
Bezeq Fixed-Line | Operating Expenses | NIS million Salaries Operating Expenses • Higher salary expenses due to salary adjustments and 2.0% 5.1% employee recruitment, partially offset by employee retirement and 253 250 262 260 258 197 189 188 183 187 reimbursement received from National Insurance fo
Slide 19: Pelephone | Q2-2024 Summary
Pelephone | Q2-2024 Summary Revenues (exc. interconnect fees) increased 1.2% to NIS 489 million, Free cash flow totaled NIS despite the impact of the war on 27 million, compared to roaming revenues. Increase in ARPU negative free cash flow of from cellular plans and higher NIS 33 million in Q2-2023
Slide 20: Pelephone | Service Revenues and 5G Subscriber Plans
Pelephone | Service Revenues and 5G Subscriber Plans Revenues from Services (NIS Million) Subscribers on 5G Plans (Thousands) 0.6% 28.3% 371 350 335 348 330 1,152 1,175 1,034 1,092 898 961 Q2-2023 Q3-2023 Q4-2023 Q1-2024 Q2-2024 Q2-2023 Q3-2023 Q4-2023 Q1-2024 Q2-2024 As of reporting date Subscriber
Slide 21: Pelephone | Q2-2024 Key Financial Highlights
Pelephone | Q2-2024 Key Financial Highlights | NIS million Revenues Adjusted EBITDA (1) Adjusted Net Profit (1) 1.2% 2.1% 6.8% 483 506 483 502 489 203 44 49 187 178 185 191 41 36 133 135 153 167 141 28 350 371 330 335 348 32% 35% 32% 32% 34% Q2-2023 Q3-2023 Q4-2023 Q1-2024 Q2-2024 Q2-2023 Q3-2023 Q4
Slide 22: Pelephone | H1-2024 Key Financial Highlights
Pelephone | H1-2024 Key Financial Highlights | NIS million Revenues Adjusted EBITDA (1) Adjusted Net Profit (1) 0.3% 1.9% 11.5% 988 991 87 376 77 308 369 304 684 683 31% 33% H1-2023 H1-2024 H1-2023 H1-2024 H1-2023 H1-2024 Services Equipment % - Adjusted EBITDA margin CapEx Free Cash Flow • Stable se
Slide 23: Pelephone | Q2-2024 Key Operational Metrics
Pelephone | Q2-2024 Key Operational Metrics Subscribers (Thousands) ARPU (NIS) 0.8% 2.2% 45 47 44 42 43 2,593 2,618 2,618 2,611 2,615 427 431 416 398 387 2,166 2,187 2,202 2,213 2,228 Q2-2023 Q3-2023 Q4-2023 Q1-2024 Q2-2024 Q2-2023 Q3-2023 Q4-2023 Q1-2024 Q2-2024 Postpaid Prepaid • Continued increas
Slide 24: yes | Q2-2024 Summary
yes | Q2-2024 Summary Revenues were impacted by increased ARPU increased NIS 1 sequentially reaching NIS competition, non-billing of customers in 174, and decreased NIS 11 the line of conflict due to the war, as year-over-year well as higher sales of content in the corresponding quarter Continued ac
Slide 25: yes | Q2-2024 Key Financial Highlights
yes | Q2-2024 Key Financial Highlights | NIS Million Revenues Adjusted EBITDA(1) Adjusted Net Profit (1) 6.0% 40.3% 17 336 328 1 316 315 316 72 58 54 44 43 21% 18% 17% 14% 14% (15) (13) (13) Q2-2023 Q3-2023 Q4-2023 Q1-2024 Q2-2024 Q2-2023 Q3-2023 Q4-2023 Q1-2024 Q2-2024 Q2-2023 Q3-2023 Q4-2023 Q1-20
Slide 26: yes | H1-2024 Key Financial Highlights
yes | H1-2024 Key Financial Highlights | NIS Million Revenues Adjusted EBITDA(1) Adjusted Net Profit (1) 5.1% 31.5% 665 631 127 17 87 19% 14% (26) H1-2023 H1-2024 H1-2023 H1-2024 % - Adjusted EBITDA margin H1-2023 H1-2024 CapEx Free Cash Flow 26.1% 47.6% • Revenues, profitability metrics and free 11
Slide 27: yes | Q2-2024 Key Operational Metrics
yes | Q2-2024 Key Operational Metrics Subscribers (Thousands) ARPU (NIS) 2.1% 5.9% 579 576 574 571 567 • Decrease in subscribers 185 182 175 173 174 due to increased competition • ARPU was impacted by the transition of premium subscribers to discount plans and the Q2-2023 Q3-2023 Q4-2023 Q1-2024 Q2-
Slide 28: Bezeq International | Q2-2024 Summary
Bezeq International | Q2-2024 Summary Continued transition from Cost savings following consumer ISP focus to reduction in consumer development of ICT business ISP activity activity: communications, data centers, integration, public cloud and cyber Revenues were impacted by Adj. Net Profit grew from
Slide 29: Bezeq International | Q2-2024 Key Financial Highlights
Bezeq International | Q2-2024 Key Financial Highlights | NIS Million Revenues Adjusted EBITDA (1) Adjusted Net Profit (1) 10.9% 8.2% 46.2% 293 303 304 289 261 18 19 49 50 48 44 45 13 15 66 60 55 48 44 227 243 249 241 217 17% 17% 16% 15% 17% - Q2-2023 Q3-2023 Q4-2023 Q1-2024 Q2-2024 Q2-2023 Q3-2023 Q
Slide 30: Bezeq International | H1-2024 Key Financial Highlights
Bezeq International | H1-2024 Key Financial Highlights | NIS Million Revenues Adjusted EBITDA (1) Adjusted Net Profit (1) 9.1% 11.0% 3.0% 605 550 100 89 138 92 33 34 467 458 17% 16% H1-2023 H1-2024 H1-2023 H1-2024 H1-2023 H1-2024 Revenues from Consumers Revenues from Business Customers % - Adjusted
Slide 31: Bezeq Group | Q2-2024 Summary
Bezeq Group | Q2-2024 Summary Continued growth in strategic drivers – Bezeq’s board of directors 64% increase in fiber take-up, 6% in recommended a semi-annual retail broadband ARPU and 28% in 5G dividend distribution of NIS 407 subscriber plans million, NIS 0.15 per share Launch of electricity supp
Slide 32: Thank You!
Thank You! For more information please visit us ir.bezeq.co.il
Bezeq The Israel Telecommunication — Q2 2024 Earnings Presentation on 6ix