After the reports: Bezeq to distribute 515 million shekels to shareholders

Bezeq finished a very successful quarter and, following the publication of its financial reports, announced the distribution of 515 million shekels to shareholders. 415 million shekels of this amount will be paid in cash, and another 100 million shekels will be used to support the stock through a share buyback.

Bezeq's reports show that the company recorded an increase of about 4% in core revenues and a 38% jump in comparative net profit in the second quarter. The group's core revenues grew by approximately 4%, totaling about 2.03 billion shekels. Profitability also saw a significant boost: comparative EBITDA rose by about 6.2% to 978 million shekels, and comparative net profit increased by about 38%, totaling 315 million shekels.

The company continued to accelerate the deployment of its fiber optic network, reaching over 3 million households, with a 4.4% growth in internet ARPU, which reached 142 shekels with a 35% take-up rate.

Pelephone presents growth in revenues, EBITDA, and net profit, despite the effects of the war, alongside continued growth in its subscriber base. Pelephone continues to lead the cellular market in 5G, with over 60% of its customers connected to the 5G network.

The turnaround of yes continues: the company presents a second consecutive quarter of net profit. Comparative net profit grew by 34 million NIS, and comparative EBITDA grew by about 27%. The company reported its highest quarterly revenues in about eight years (348 million shekels).

Tomer Raved, Chairman of the Bezeq Group, said: "The strong results of the second quarter illustrate the group's momentum, reflected in consistent growth across all financial indicators and an increase in our customer base across all operational arms—from Bezeq's fiber connections to 5G subscriber growth at Pelephone and increased profitability at yes.

"The importance of digital infrastructure in this period strengthens all our core engines, and we expect continued expansion through both acquisitions and growth-supporting investments in international infrastructure and cables. The last few quarters illustrate the success of our strategic compass and the unprecedented growth in the group's profitability indicators.

"Looking ahead, alongside organic growth, we are actively examining merger and acquisition opportunities that will support the group's strategy, create technological synergies, and strengthen our competitive advantage. Simultaneously, we are working vigorously to establish Israel's position as a global digital hub through the submarine cable project. This national project will ensure redundancy and communication security, connect us to global information axes, and serve as a strategic growth engine for the coming years."

Yohai Benita, CFO of the Bezeq Group, said: "The quarter's results reflect the continuation of the group's strong financial performance, relying on growth in core activities, high profitability, and solid cash flow. We continue to manage the group's capital structure responsibly while maintaining financial flexibility.

"The financial robustness we present allows us to continue creating value for our investors, including through a recommendation to distribute a dividend of about 415 million shekels and an additional share buyback program of 100 million shekels. These steps reflect our confidence in the group's strength and our commitment to creating lasting value for shareholders."

Nir David, CEO of Bezeq, said: "The current quarter illustrates Bezeq's power and our ability to present consistent growth in all core indicators based on our strategic plans. Core revenues totaled about 998 million shekels, an increase of about 2% compared to the same period last year, alongside a comparative EBITDA of about 682 million shekels—a growth of over 6%—and a comparative net profit of about 259 million shekels, an impressive 20% increase, mainly due to revenue growth and reduced operating and financing expenses.

"The results reflect growth in our expanding activities in transmission, data communication, cloud, and digital solutions, alongside improved operational efficiency following the completion of a significant stage of the fiber project. ARPU also continued to rise, reaching 142 shekels for the quarter, testifying to the high value our customers receive.

"At the same time, we reached over 3 million households in the fiber deployment project, strengthening our position as leaders of the communications market in Israel. We will continue to act in accordance with our strategy, invest in advanced infrastructure and future growth engines, lead in innovation, and provide our customers with the most advanced, high-quality solutions."

Ilan Sigal, CEO of Pelephone and yes, said: "The quarter's results reflect the success of the strategic moves we have led in recent years. The companies present continued growth, improved profitability, and a strengthened competitive position, while consistently investing in infrastructure, innovation, and customer experience. At Pelephone, we continue to lead the 5G cellular market in Israel, with over 60% of our customers already connected to the 5G network. We are seeing growth in revenues, EBITDA, and net profit, alongside consistent growth in our subscriber base.

"Simultaneously, we are promoting strategic moves to expand our areas of activity and accelerate growth engines, including signing a memorandum of understanding for the acquisition of Wecom.

"At yes, we see the fruits of the business moves we have led in recent years. The company presents its highest quarterly revenues in about eight years, a second consecutive quarter of net profit, and the highest comparative EBITDA in over three years. These results reflect the success of the transition to a more diversified, efficient, and profitable operating model."

Mani Baruch, CEO of Bezeq International TECH, said: "Bezeq International concludes a strong second quarter with continued growth in business activity, stemming mainly from the expansion of integration activities and growing demand for cloud, cyber, and advanced infrastructure solutions. This activity constitutes a significant growth engine for the company and complements our core business in communication, international data, and server farms.

"We continue to focus on expanding activity in areas with high growth potential, alongside promoting efficiency and business transformation processes, with the goal of continuing to improve profitability and strengthen our position as our customers' leading technological partner."