In This Article:
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Core Revenue Increase: Over 2% growth, driven by a 4% increase in Bezeq Fixed-Line.
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Adjusted EBITDA: Decreased by 1% after adjustments for Universal Fiber Fund and war impacts.
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Fiber Subscribers: 50% year-over-year increase, reaching over 780,000.
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5G Subscriber Plans: 25% growth, with over 1.2 million subscribers.
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Free Cash Flow: 2.2% growth for the first nine months, exceeding ILS1 billion.
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Retail Broadband ARPU: Increased 6% year-over-year to ILS131.
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Net Debt: Decreased by ILS290 million to ILS4.7 billion.
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Fixed-Line Core Revenues: Increased 3.6% to ILS970 million.
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Operating Expenses: Increased by 8.5% due to higher subcontractor and salary expenses.
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Pelephone Revenues: Stable despite a ILS20 million impact from the war on roaming revenues.
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Yes TV Subscribers: 81% now watching through IP, with a 120% year-over-year increase in fiber subscribers.
Release Date: November 19, 2024
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
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Bezeq The Israeli Telecommunication Corp Ltd (BZQIF) recorded a 2% increase in core revenues, driven by a 4% growth in Bezeq Fixed-Line.
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The company achieved a 50% year-over-year increase in fiber subscribers and a 25% growth in 5G subscriber plans.
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Bezeq has reached 2.5 million home passes with a 31% take-up rate, surpassing expectations.
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The strategic sale of Bezeq Online for ILS50 million contributed to financial efficiency.
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Net debt decreased by ILS290 million or 6% year-over-year, improving the coverage ratio from 1.6 times to 1.5 times.
Negative Points
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Adjusted EBITDA was negatively impacted by the reversal of the Universal Fiber Fund and the war's impact on roaming revenues.
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Free cash flow declined this quarter due to an increase in CapEx.
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The TV sector remains highly competitive, with a 1% decline in TV subscribers.
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Adjusted net profit decreased by 2.6% after adjustments for the universal fund and roaming revenue impacts.
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Bezeq International faced declines in revenues and profitability due to regulatory reforms and lower international long-distance revenues.
Q & A Highlights
Q: How should we think about CapEx for this year and next year, and what are the main reasons for falling behind on EBITDA guidance? A: The impact from the war is not material but has affected roaming revenues. EBITDA will likely be slightly below guidance, around 2% lower, but CapEx will also be below expectations, resulting in better free cash flow. We are nearing the end of the CapEx cycle with the completion of the fiber project and migration from satellite to IP, which will lead to a significant drop in CapEx in the second half of next year and into 2026.