Bezeq The Israel Telecommunication Corp. Ltd. · TASE:BEZQ
Bezeq The Israel Telecommunication — FY2024 Earnings Presentation
40 slides from Bezeq The Israel Telecommunication's earnings presentation, 2025
Slide 1: Bezeq Group 2024 Investor Presentation
Bezeq Group 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's Compass – Strategic Update
Bezeq’s Compass – Strategic Update 3
Slide 4: Key Strategy Implementation Status
Bezeq Group | Key Strategy Implementation Status 04 Fiber as growth engine Developing a leading ICT company 01 Bezeq is leading the fiber revolution in Israel: Bezeq Intl is in a long-term transformation process: • 2.64m homes passed today • Focus on growing ICT market • Take-up: 850k subscribers, 3
Slide 5: 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 • 2.64m homes passed • 850k subscriber take-up (retail + wholesale) • ~1.3m subscribers Today • 32% take-up rate (55% of postp
Slide 6: Bezeq's Compass | Financial Highlights
Bezeq’s Compass| Financial Highlights Mid-term Targets – Mar Updated Mid-term 2024 Targets Growth in ~2.0% CAGR 1.5%-2.0% CAGR Adj. EBITDA Adj. EBITDA margin 42%-44% 43%-45% Increase of Increase of Adj. EBITDA – CapEx NIS 400-500m ~NIS 500m Growth in 7%-9% CAGR 7%-9% CAGR Free Cash Flow • Strive to
Slide 7: Bezeq Group | 2024 Summary
Bezeq Group | 2024 Summary Adj. EBITDA in 2024 was impacted by the 1.3% growth in core revenues(1) to NIS war’s impact on roaming revenues and the 7.73 billion, due to growth in Pelephone decrease in telephony revenues. Adjusted and Bezeq Fixed-Line EBITDA rose 5.9% and Adjusted Net Profit grew 23.3
Slide 8: Bezeq Group | 2024 Summary
Bezeq Group | 2024 Summary Core Revenues(1) Adj. EBITDA(2) Adj. Net Profit(2) NIS 7.73 billion NIS 3.72 billion NIS 1.27 billion Adjusted EBITDA margin of 41.8% 1.3% 2.6% 4.7% After adjusting for the impact of the war on roaming revenues: 1.7% 1.8% 2.9% Free Cash Flow Decrease in Net Debt NIS 1.27 b
Slide 9: 2024 Summary (cont'd)
Bezeq Group | 2024 Summary (cont’d) Fiber Net Adds Retail Broadband ARPU Cellular subscribers Cellular ARPU (3) Revenues 245k NIS 130 2.63 million NIS 45 NIS 1.27 billion (retail and wholesale) 5.7% 0.6% 2.3% 3.4% TV subscribers Fiber Subscribers Homes Passed 5G subscriber plans Cellular Service Rev
Slide 10: 2024 Key Financial Highlights
Bezeq Group | 2024 Key Financial Highlights | NIS million Revenues Adjusted EBITDA (1) Adjusted Net Profit (1) 1.3%(3) 2.6% 4.7% 8,986 9,103 8,884 3,736 3,817 3,716 1,196 1,328 1,265 1,768 1,466 1,151 7,218 7,637 7,733 42% 42% 42% 2022 2023 2024 2022 2023 2024 )2( 2022 2023 2024 Fixed-line telephony
Slide 11: Q4-2024 Key Financial Highlights
Bezeq Group | Q4-2024 Key Financial Highlights | NIS million Revenues Adjusted EBITDA (1) Adjusted Net Profit (1) 2.5%(3) 5.9% 23.3% 2,231 2,255 2,192 2,234 2,203 920 917 910 915 974 365 327 323 304 273 251 296 299 292 309 1,904 1,932 1,888 1,961 1,952 41% 41% 41% 41% 44% Q4-2023 Q1-2024 Q2-2024 Q3-
Slide 12: Key Annual Operational Metrics
Bezeq Group | Key Annual Operational Metrics ARPU (NIS) Subscribers (end of period, in thousands) 183 186 185 2,580 2,618 2,633 183 182 174 130 123 114 1,503 1,442 1,383 1,032 1,028 1,008 43 44 45 579 574 562 42 37 32 472 467 471 2022 2023 2024 2022 2023 2024 6% increase in retail broadband ARPU vs.
Slide 13: Key Quarterly Operational Metrics
Bezeq Group | Key Quarterly Operational Metrics ARPU (NIS) Subscribers (end of period, in thousands) 182 182 184 187 186 2,639 2,633 2,618 2,611 2,615 175 173 174 175 172 127 129 131 133 125 1,442 1,419 1,409 1,397 1,383 1,028 1,019 1,014 1,012 1,008 42 43 44 46 45 574 571 567 563 562 33 33 33 32 31
Slide 14: Financial Debt
Bezeq Group | Financial Debt Decrease in net debt Financial Debt (NIS billion) • Decrease of NIS 250 million, or 4.8%, to NIS 4.95 billion 2.5 2.4 3.0 16.0 2.1 2.5 14.0 11.2 1.8 1.7 1.6 1.5 2.0 9.6 Net debt/Adjusted EBITDA ratio – 1.5 times, the lowest 12.0 2.3 8.4 8.1 1.5 7.6(1) 10.0 1.6 7.3 7.0 8.
Slide 15: Dividend Policy Update
Bezeq Group | Dividend Policy Update • The Company's Board of Directors updated its dividend distribution policy, according to which the Company will distribute to its shareholders on a semi-annual basis, a cash dividend of 80% of the semi-annual profit (after tax) • Further to the dividend policy,
Slide 16: 2025 Guidance
Bezeq Group | 2025 Guidance 2024 Outlook 2024 Results 2025 Outlook)3( Adj. EBITDA (1) NIS 3.8 billion NIS 3.72 billion NIS 3.7 billion Adj. net profit (1) NIS 1.2 billion NIS 1.27 billion NIS 1.2 billion CapEx NIS 1.8-1.9 billion NIS 1.74 billion NIS 1.75 billion Fiber deployment 2.5 million househo
Slide 17: Mid-Term Targets
Bezeq Group | Mid-Term Targets Mid-term Targets Mar 2024 Updated Mid-term Targets Core revenues 2%-3% CAGR Adj. EBITDA(1) 1.5% - 2.0% CAGR ~2.0% CAGR Adj. EBITDA Margin 42%-44% 43%-45% Financial Metrics Unchanged CapEx (gross) 16%-18% CapEx/Sales Adj. EBITDA less CapEx Increase of NIS 400-500 millio
Slide 18: Bezeq Group - ESG
Bezeq Group - ESG Environmental Social Governance Net Zero Target - in GHG emissions by 2050 Full gender equality target across management Group ESG Management tiers, and at least 40% women at the Board of High Ratings Directors by 2030 (Status(1): 33% in board and 39% - Maala: Platinum+ Scope 3 cal
Slide 19: Bezeq Fixed-Line | 2024 Summary
Bezeq Fixed-Line | 2024 Summary Fixed-Line core revenues(1) increased Retail fiber customers 1.0% to NIS 3.80 billion, mainly due to reached 547k as of today, higher revenues from broadband with 6.4% growth in retail services and transmission and data broadband ARPU reaching communications NIS 133 i
Slide 20: Bezeq Fixed-Line | 2024 Key Financial Highlights
Bezeq Fixed-Line | 2024 Key Financial Highlights | NIS million Revenues Adjusted EBITDA (1) Adjusted Net Profit (1) 1.0% (2) 1.6% 1.9% 4,306 4,412 4,342 2,580 2,618 2,576 938 1,016 997 780 650 544 3,526 3,762 3,798 60% 60% 59% 59% 59% 2022 2023 2024 2022 2023 2024 2022 2023 2024 Core Revenues)3( Tel
Slide 21: Bezeq Fixed-Line | Q4-2024 Key Financial Highlights
Bezeq Fixed-Line | Q4-2024 Key Financial Highlights | NIS million Revenues Adjusted EBITDA (1) Adjusted Net Profit (1) Unchanged (2) 3.0% 9.1% 1,087 1,091 1,075 1,105 1,071 637 649 633 638 656 258 265 144 143 138 135 128 243 235 239 943 948 937 970 943 59% 60% 59% 58% 61% Q4-2023 Q1-2024 Q2-2024 Q3-
Slide 22: Bezeq Fixed-Line | Q4-2024 Broadband Internet
Bezeq Fixed-Line | Q4-2024 Broadband Internet Broadband Revenues (NIS m) Retail Broadband Lines (Thousands) • Continued increase in fiber 2.0% 1.9% take-up to 32% 1,028 1,019 1,014 1,012 1,008 • Continued growth in broadband retail ARPU, 494 501 494 500 504 100 0 positively impacted by 367 900 407 4
Slide 23: 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) 40 41 38 30 35 27 24 24 32 13 Q4-2023 Q1-2024 Q2-2024 Q3-2024 Q4-2024 Q4-2023 Q1-2024 Q2-2024 Q3-2024 Q4-2024 Total Retail Fiber Take-Up (Thousands) Total Wholesale Fibe
Slide 24: 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) 2,312 2,448 2,571 2,640 70 2,070 2,191 65 59 59 51 Q4-2023 Q1-2024 Q2-2024 Q3-2024 Q4-2024 Q4-2023 Q1-2024 Q2-2024 Q3-2024 Q4-2024 As of reporting date Tota
Slide 25: Data, Telephony, Cloud & Digital Revenues
Bezeq Fixed-Line | Data, Telephony, Cloud & Digital Revenues | NIS million Transmission & Data Cloud & Digital 1.4% 0.3% • Continued growth in revenues from transmission and data communications, partially 1,132 1,163 1,179 331 349 348 offset by lower revenues from ISP companies • Moderate decrease i
Slide 26: Bezeq Fixed-Line | Operating Expenses
Bezeq Fixed-Line | Operating Expenses | NIS million Salaries Operating Expenses • Moderate salary expense 0.9% 4.0% increase due to salary adjustments and employee 759 769 738 recruitment, partially offset by 970 1,028 1,037 employee retirement and reimbursement received from National Insurance for
Slide 27: Pelephone | 2024 Summary
Pelephone | 2024 Summary Highest revenues from services(3) in seven years, reaching NIS 1.4 ARPU in Q4-2024 was NIS 45, a billion, an increase of 1.3%, Y-o-Y increase of NIS 3 despite the impact of the war on roaming revenues (NIS 65m) Adjusted EBITDA rose 1.3% to NIS 5G subscriber plans grew by 208
Slide 28: Pelephone | Highest Service Revenues Since 2017
Pelephone | Highest Service Revenues Since 2017 Growth in Service Revenues Despite War Impact Revenues from Services (NIS Million) Subscribers on 5G Plans (Thousands) 20.2% 1,410 1,366 1,364 1,385 1,403 1,314 1,204 1,133 1,195 1,237 1,263 1,086 1,144 1,029 2017 2018 2019 2020 2021 2022 2023 2024 Q4-
Slide 29: Pelephone | 2024 Key Financial Highlights
Pelephone | 2024 Key Financial Highlights | NIS million Revenues Adjusted EBITDA (1) Adjusted Net Profit (1) 2.2% 1.3% 6.1% 193 1,972 1,977 2,021 761 750 760 164 154 608 592 618 32% 32% 32% 33% 34% 1,364 1,385 1,403 2022 2023 2024 2022 2023 2024 2022 2023 2024 Services Equipment % - Adjusted EBITDA
Slide 30: Pelephone | Q4-2024 Key Financial Highlights
Pelephone | Q4-2024 Key Financial Highlights | NIS million Revenues Adjusted EBITDA (1) Adjusted Net Profit (1) 8.5% 8.4% 28.6% 483 502 489 506 524 178 185 191 191 193 41 41 36 36 153 167 141 141 169 28 330 335 348 365 355 32% 32% 34% 35% 34% Q4-2023 Q1-2024 Q2-2024 Q3-2024 Q4-2024 Q4-2023 Q1-2024 Q
Slide 31: Pelephone | Q4-2024 Key Operational Metrics
Pelephone | Q4-2024 Key Operational Metrics Subscribers (Thousands) ARPU (NIS) 0.6% 7.1% 2,618 2,611 2,615 2,639 2,633 43 44 46 45 42 416 398 387 388 376 2,202 2,213 2,228 2,251 2,257 Q4-2023 Q1-2024 Q2-2024 Q3-2024 Q4-2024 Q4-2023 Q1-2024 Q2-2024 Q3-2024 Q4-2024 Postpaid Prepaid • Continued increas
Slide 32: yes | 2024 Summary
yes | 2024 Summary Revenues decreased 3.4% due to Quarterly ARPU subscribers(3) increased competition and the war, increased NIS 4 year-over- mainly the non-billing of customers in year to NIS 186 due to higher the line of conflict (impact of NIS 20m in revenues from the TV + fiber bundle 2024), par
Slide 33: yes | 2024 Key Financial Highlights
yes | 2024 Key Financial Highlights | NIS Million Revenues Adjusted EBITDA(1) Adjusted Net Profit (1) 3.4% 27.6% 3 1,277 1,309 1,265 231 239 173 (38) 18% 18% 14% (72) 2022 2023 2024 2022 2023 2024 2022 2023 2024 % - Adjusted EBITDA margin • Revenues were impacted by increased CapEx Free Cash Flow co
Slide 34: yes | Q4-2024 Key Financial Highlights
yes | Q4-2024 Key Financial Highlights | NIS Million Revenues Adjusted EBITDA(1) Adjusted Net Profit (1) 0.3% 5.6% 6.7% 316 315 316 317 317 54 44 43 51 35 (15) (13) (13) (16) 17% 14% 14% 11% 16% (30) Q4-2023 Q1-2024 Q2-2024 Q3-2024 Q4-2024 Q4-2023 Q1-2024 Q2-2024 Q3-2024 Q4-2024 Q4-2023 Q1-2024 Q2-2
Slide 35: yes | Q4-2024 Key Operational Metrics
yes | Q4-2024 Key Operational Metrics Subscribers (Thousands) ARPU (NIS) 2.1% 2.2%(3) 175 182 173 182 174 184 175 187 186 574 571 567 172 563 562 • Decrease in subscribers due to increased competition • Higher ARPU subscribers(4) Q4-2023 Q1-2024 Q2-2024 Q3-2024 Q4-2024 due to higher revenues Q4-2023
Slide 36: Bezeq International | 2024 Summary
Bezeq International | 2024 Summary Continued transition from consumer ISP focus to development of ICT business Adj. Net Profit rose 2%, to NIS 52 activity: communications, data million centers, integration, public cloud and cyber Free cash flow reached NIS 51 Revenues decreased 9%, mainly million, c
Slide 37: Bezeq International | 2024 Key Financial Highlights
Bezeq International | 2024 Key Financial Highlights | NIS Million Revenues Adjusted EBITDA (1) Adjusted Net Profit (1) 8.8% 11.1% 2.0% 1,239 1,212 1,105 198 177 176 368 253 167 41 51 52 871 959 938 14% 17% 16% 16% 16% 16% 2022 2023 2024 2022 2023 2024 2022 2023 2024 Revenues from Business Customers
Slide 38: Bezeq International | Q4-2024 Key Financial Highlights
Bezeq International | Q4-2024 Key Financial Highlights | NIS Million Revenues Adjusted EBITDA (1) Adjusted Net Profit (1) 6.3% Unchanged 304 289 261 270 285 19 48 44 45 48 15 14 55 48 44 39 36 39 249 241 231 249 16% 15% 17% 14% 17% 4 217 - Q4-2023 Q1-2024 Q2-2024 Q3-2024 Q4-2024 Q4-2023 Q1-2024 Q2-2
Slide 39: Bezeq Group | 2024 Summary
Bezeq Group | 2024 Summary Adj. EBITDA in 2024 was impacted by the 1.3% growth in core revenues(1) to NIS war’s impact on roaming revenues and the 7.73 billion, due to growth in Pelephone decrease in telephony revenues. Adjusted and Bezeq Fixed-Line EBITDA rose 5.9% and Adjusted Net Profit grew 23.3
Slide 40: Thank You!
Thank You! For more information please visit us ir.bezeq.co.il
Bezeq The Israel Telecommunication — FY2024 Earnings Presentation on 6ix