Financial Highlights
Continued growth in Core Revenues(1), totaled NIS 7.7 billion, up 1.3%
After adjusting for the impact of the war on roaming revenues – up 1.7%
(1) Total Group revenues excluding Bezeq Fixed-Line telephony revenues, Pelephone interconnect fees, Bezeq International consumer revenues and Bezeq Online revenues
(2) % change in core revenues
Adjusted EBITDA(1) totaled
NIS 3.72 billion, down 2.6%
After adjusting for the impact of the war on roaming revenues – down 1.8%
(1) After adjusting for other operating expenses/income, net, one-time losses/gains from impairment/increase in value of assets and stock-based compensation
% - Adjusted EBITDA margin
(1) After adjusting for other operating expenses/income, net, one-time losses/gains from impairment/increase in value of assets and stock-based compensation
% - Adjusted EBITDA margin
Adjusted net profit totaled NIS 1.27 billion, down 4.7%
After adjusting for the impact of the war on roaming revenues – down 2.9%
(1) After adjusting for other operating expenses/income, net, one-time losses/gains
from impairment/increase in value of assets and stock-based compensation
Capital expenditures totaled NIS 1.74 billion, or 20% of revenues, up 2.0%
The group continues to invest in advanced telecommunications infrastructure
% - Capex/Sales
Free cash flow totaled NIS 1.27 billion, down 2.4%, reflecting 14% FCF margin
Strong and resilient FCF
Net Debt decreases by NIS 250 Million, down 4.8% to NIS 4.9 Billion
Bezeq is rated AA,following upgrade in 2024
The lowest Net Debt/Adj. EBITDA ratio since 2010
Board of Directors upgrades the dividend policy to 80% of net profit and recommends a distribution of NIS 392 million
Continued increase in dividend distribution
Bezeq Group | Guidance
Adjusted EBITDA (1)
Adjusted net profit (1)
CAPEX
Fiber deployment
Financial stability
2024 Outlook
NIS 3.8 billion
NIS 1.2 billion
NIS 1.8-1.9 billion
2.5 million households
Maintain High Credit
Rating, within the
AA group
2024 Results
NIS 3.72 billion
NIS 1.27 billion
NIS 1.74 billion
2.57 million households
Maintain High Credit
Rating, within the
AA group
2025 Outlook (2)
NIS 3.7 billion
NIS 1.2 billion
NIS 1.75 billion
2.9 million households
Maintain High Credit
Rating, within the
AA group
(1) After adjusting for other operating expenses/income, net, one-time losses/gains from impairment/increase in value of assets and stock-based compensation
(2) The Company will report, as required, deviations of more/less than 10% of the amounts and ranges stated in the outlook
Bezeq Group | Mid-Term Targets
| Mid-term Targets Mar 2024 |
Updated Mid-term Targets | |
|
Core revenues
|
2%-3% CAGR | |
|
Adj. EBITDA
|
1.5% – 2.0% CAGR | 2.0% CAGR |
|
Adj. EBITDA Margin
|
42%-44% | 43%-45% |
| CapEx (gross) | 16%-18% CapEx/Sales | Unchanged |
| Adj. EBITDA less CapEx | Increase of NIS 400-500 million | Increase of NIS 500 million |
|
Free cash flow AL
|
7%-9% CAGR | Unchanged |
| Financial stability | Maintain High Credit Rating within the AA group |
Unchanged |
| Dividend | Strive to increase dividend payout (subject to maintaining credit rating within the AA group) |
Unchanged |
| Fiber Take - Up | Take-up rate of ~40% (retail + wholesale) | Unchanged |
| ARPU – Retail Internet | Above NIS 140 | Unchanged |
| ARPU - Pelephone | NIS 45-50, excl. interconnect (1) | Unchanged |
| ARPU Subscribers - yes | NIS 190-195(1) |
(1) ARPU TV Target from March 2024 - NIS 155-160 is unchaged
Operational Highlights
Bezeq has the highest number of fiber subscribers in Israel with 810K (retail + wholesale)
The highest number of fiber subscribers in Israel
Pelephone’s revenues from services are the highest since 2017
Revenues from services grew despite the effects of the war on roaming revenues
yes continues its migration to IP
Continued growth in fiber subscribers
Bezeq Group | Key Operational Metrics
(1) ARPU subscribers includes TV and fiber activity