Bezeq The Israel Telecommunication Corp. Ltd. · TASE:BEZQ
Bezeq The Israel Telecommunication — Q1 2024 Earnings Presentation
28 slides from Bezeq The Israel Telecommunication's earnings presentation, 2024
Slide 1: Bezeq Group Q1-2024 Investor Presentation
Bezeq Group Q1-2024 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 | Q1-2024 Summary
Bezeq Group | Q1-2024 Summary Strong execution in strategic Core revenues (1) grew 2.1% to growth drivers – 80% growth in NIS 2.0 billion, mainly due to higher fiber take-up, 6% increase in retail core revenues in Bezeq Fixed-Line Internet ARPU and 30% growth in and despite the impact of the war 5G
Slide 4: Bezeq Group | Q1-2024 Summary
Bezeq Group | Q1-2024 Summary Core Revenues (2) Adj. EBITDA (1) Adj. Net Profit (1) NIS 2.0 billion NIS 917 Adjusted EBITDA margin of 40.7% million NIS 299 million 2.1% 2.0% 6.9% Free Cash Flow Decrease in Net Debt NIS 468 million NIS 582 million 35.7% 11.0% All results are compared to Q1-2023 unles
Slide 5: Bezeq Group | Q1-2024 Summary (Cont'd)
Bezeq Group | Q1-2024 Summary (Cont’d) Fiber Net Adds Retail Broadband ARPU Cellular subscribers Cellular ARPU (3) Revenues 70k NIS 127 2.61 million NIS 43 NIS 315 million (retail and wholesale) 5.8% 1.0% Unchanged 4.3% TV subscribers 571k 5G subscriber plans Fiber Subscribers Homes Passed 1.1m (1)
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 • 2.25m homes passed • Over 1.1m subscribers 422k IP(2) subscribers (75%) (43% of total subscribers) • Accelerated retail fiber
Slide 7: Bezeq Group | Q1-2024 Key Financial Highlights
Bezeq Group | Q1-2024 Key Financial Highlights | NIS million Revenues Adjusted EBITDA (1) Adjusted Net Profit (1) 2.3% 2.0% 6.9% 936 987 974 920 917 2,308 2,299 2,265 2,231 2,255 354 357 321 296 299 41% 43% 43% 41% 41% 40% 41% Q1-2023 Q2-2023 Q3-2023 Q4-2023 Q1-2024 Q1-2023 Q2-2023 Q3-2023 Q4-2023 Q
Slide 8: Bezeq Group | Key Operational Metrics
Bezeq Group | Key Operational Metrics ARPU (NIS) Subscribers (end of period, in thousands) 185 185 182 175 173 2,585 2,593 2,618 2,618 2,611 122 124 125 127 120 1,488 1,473 1,454 1,442 1,419 1,031 1,028 1,029 1,028 1,019 43 45 47 42 43 580 579 576 574 571 41 39 34 33 33 474 477 471 467 470 Q1-2023 Q
Slide 9: Bezeq Group | Financial Debt
Bezeq Group | Financial Debt Decrease in net debt Financial Debt (NIS billion) • Decrease of NIS 582 million, or 11% y-o-y 2.5 16.0 14.0 1.6 1.6 1.6 1.6 2.0 1.4 12.0 1.5 • Net debt of NIS 4.7 billion – lowest since 2010 10.0 7.7 7.7 7.7 8.1(1) 7.0 1.0 8.0 Further improvement in Net debt/Adjusted EBI
Slide 10: Bezeq Group | 2024 Guidance (Unchanged)
Bezeq Group | 2024 Guidance (Unchanged) Results 2023A 2024 Outlook (2)Ambitions Mid-Term Adjusted EBITDA (1) NIS 3.82 billion NIS 3.8 billion Adjusted net profit (1) NIS 1.33 billion NIS 1.2 billion CapEx NIS 1.71 billion NIS 1.8-1.9 billion (3) Fiber 2.07 million households 2.5 million households D
Slide 11: Bezeq Fixed-Line | Q1-2024 Summary
Bezeq Fixed-Line | Q1-2024 Summary 2.0% growth in Fixed-Line Adj. Net Profit rose 1.6% to 5.8% growth in retail core revenues (2) to NIS 948 NIS 258 million. Internet ARPU, reaching million, mainly due to higher Free cash flow increased NIS 127 revenues from broadband services and transmission 57.5%
Slide 12: Bezeq Fixed-Line | Q1-2024 Key Financial Highlights
Bezeq Fixed-Line | Q1-2024 Key Financial Highlights | NIS million Revenues Adjusted EBITDA (1) Adjusted Net Profit (1) 1.8% 0.8% 1.6% 1,111 1,130 1,084 1,087 1,091 654 681 646 637 649 254 267 252 243 258 59% 60% 60% 59% 60% Q1-2023 Q2-2023 Q3-2023 Q4-2023 Q1-2024 Q1-2023 Q2-2023 Q3-2023 Q4-2023 Q1-2
Slide 13: Bezeq Fixed-Line | Q1-2024 Broadband Internet
Bezeq Fixed-Line | Q1-2024 Broadband Internet Broadband Revenues (NIS m) Retail Broadband Lines (Thousands) 4.6% 1.2% • Significant increase in fiber take-up 1,031 1,028 1,029 1,028 1,019 • Growth in revenues from 479 485 489 494 501 100 0 246 289 broadband services 335 367 900 800 407 700 600 500 •
Slide 14: 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) 48 46 43 40 36 36 30 27 30 32 Q1-2023 Q2-2023 Q3-2023 Q4-2023 Q1-2024 Q1-2023 Q2-2023 Q3-2023 Q4-2023 Q1-2024 Total Retail Fiber Take-Up (Thousands) Total Wholesale Fibe
Slide 15: 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) 1,970 2,070 2,191 2,253 84 82 1,835 73 1,689 70 59 Q1-2023 Q2-2023 Q3-2023 Q4-2023 Q1-2024 As of Q1-2023 Q2-2023 Q3-2023 Q4-2023 Q1-2024 reporting date Tota
Slide 16: 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 4.2% and data communications, partially offset by a decrease 286 289 290 298 298 in traffic revenues from ISP companies 87 89 87 86 87 • Tel
Slide 17: Bezeq Fixed-Line | Operating Expenses
Bezeq Fixed-Line | Operating Expenses | NIS million Salaries Operating Expenses • Lower salary expenses due to reimbursement received from National Insurance for 1.1% 6.2% employees in military reserve duty as well as a 263 253 250 262 260 195 197 189 188 183 one-time grant in the corresponding quar
Slide 18: Pelephone | Q1-2024 Summary
Pelephone | Q1-2024 Summary Stable service revenues driven by higher Adjusted EBITDA rose 1.6% to 5G subscriber plans and postpaid NIS 185 million subscribers, despite the war impact on roaming revenues 5G subscriber plans grew by 58k Third consecutive quarter ARPU was NIS 43, an increase reaching 1
Slide 19: Pelephone | Service Revenues and 5G Subscriber Plans
Pelephone | Service Revenues and 5G Subscriber Plans Revenues from Services (NIS Million) Subscribers on 5G Plans (Thousands) 0.3% 30.9% 371 334 350 335 330 1,092 1,111 1,034 961 898 834 Q1-2023 Q2-2023 Q3-2023 Q4-2023 Q1-2024 Q1-2023 Q2-2023 Q3-2023 Q4-2023 Q1-2024 As of reporting date Subscribers
Slide 20: Pelephone | Q1-2024 Key Financial Highlights
Pelephone | Q1-2024 Key Financial Highlights | NIS million Revenues Adjusted EBITDA (1) Adjusted Net Profit (1) 0.6% 1.6% 16.3% 505 506 483 502 203 49 483 182 187 178 185 43 44 36 171 133 135 153 167 28 334 350 371 330 335 30% 32% 35% 32% 32% Q1-2023 Q2-2023 Q3-2023 Q4-2023 Q1-2024 Q1-2023 Q2-2023 Q
Slide 21: Pelephone | Q1-2024 Key Operational Metrics
Pelephone | Q1-2024 Key Operational Metrics Subscribers (Thousands) ARPU (NIS) 1.0% 45 47 43 42 43 2,585 2,593 2,618 2,618 2,611 426 427 431 416 398 2,159 2,166 2,187 2,202 2,213 Q1-2023 Q2-2023 Q3-2023 Q4-2023 Q1-2024 Q1-2023 Q2-2023 Q3-2023 Q4-2023 Q1-2024 Postpaid Prepaid • Continued increase in
Slide 22: yes | Q1-2024 Summary
yes | Q1-2024 Summary Revenues totaled NIS 315 million, yes is the largest Israeli IP operator down 4.3% impacted by the non-billing with 422k customers watching TV of customers in the line of conflict due through IP broadcasting (1) (75% of to the war as well as a change in the total subscribers),
Slide 23: yes | Q1-2024 Key Financial Highlights
yes | Q1-2024 Key Financial Highlights | NIS Million Revenues Adjusted EBITDA(1) Adjusted Net Profit (1) 4.3% 20.0% 17 - 1 329 336 328 316 315 72 55 58 54 44 17% 21% 18% 17% 14% (15) (13) Q1-2023 Q2-2023 Q3-2023 Q4-2023 Q1-2024 Q1-2023 Q2-2023 Q3-2023 Q4-2023 Q1-2024 Q1-2023 Q2-2023 Q3-2023 Q4-2023
Slide 24: yes | Q1-2024 Key Operational Metrics
yes | Q1-2024 Key Operational Metrics Subscribers (Thousands) ARPU (NIS) 1.6% 6.5% • Continued growth in IP 580 579 576 574 571 185 185 182 subscribers to 75% of 175 173 yes subscribers (2) • Rapid growth in fiber subscribers • ARPU was impacted by the continued transition Q1-2023 Q2-2023 Q3-2023 Q4
Slide 25: Bezeq International | Q1-2024 Summary
Bezeq International | Q1-2024 Summary Increase in ICT activity offset Focus on growth in ICT most of the decrease in market with emphasis on consumer ISP revenues cyber, integration, public cloud and data centers Cost savings due to Free cash flow rose to NIS reduction in 23 million, compared to con
Slide 26: Bezeq International | Q1-2024 Key Financial Highlights
Bezeq International | Q1-2024 Key Financial Highlights | NIS Million Revenues Adjusted EBITDA (1) Adjusted Net Profit (1) 7.4% 13.7% 25.0% 312 293 303 304 289 20 51 49 50 48 18 44 13 15 16% 17% 17% 16% 15% - Q1-2023 Q2-2023 Q3-2023 Q4-2023 Q1-2024 Q1-2023 Q2-2023 Q3-2023 Q4-2023 Q1-2024 Q1-2023 Q2-2
Slide 27: Bezeq Group | Q1-2024 Summary
Bezeq Group | Q1-2024 Summary Strong execution in strategic Core revenues (1) grew 2.1% to growth drivers – 80% growth in NIS 2.0 billion, mainly due to higher fiber take-up, 6% increase in retail core revenues in Bezeq Fixed-Line Internet ARPU and 30% growth in and despite the impact of the war 5G
Slide 28: Thank You!
Thank You! For more information please visit us ir.bezeq.co.il
Bezeq The Israel Telecommunication — Q1 2024 Earnings Presentation on 6ix