Even before the cancellation of structural separation: Bezeq raises profit forecast
Bezeq has upgraded its 2026 net profit and EBITDA forecasts due to improved business performance. The company now expects net profit to reach between 1.15 and 1.2 billion shekels.
Bezeq is raising its forecast for 2026, following an improvement in the group's business performance. The company, led by CEO Nir David and Chairman Tomer Raved, has updated its net profit and EBITDA forecasts upwards, while its investment forecast remains unchanged.
The comparable net profit (excluding one-time events and valuation changes) is expected to be in the range of 1.15-1.2 billion shekels in 2026, compared to the previous forecast of 1-1.1 billion shekels published in March. The upper end of the forecast was raised by 9.1% to 1.2 billion shekels, and the lower end was raised by 15% to 1.15 billion shekels. The comparable EBITDA forecast was updated to a range of 3.8-3.85 billion shekels, compared to 3.7-3.8 billion shekels previously. On the other hand, the capital expenditure forecast — gross CAPEX — remained unchanged at about 1.6 billion shekels. These are gross payments for investments in fixed assets and intangible assets.
Bezeq noted that the main part of the forecast update is due to an improvement in the group's business performance. The forecast increase comes at a time when Bezeq is awaiting the Ministry of Communications' decision on the issue of canceling structural separation, a move the company has been promoting for more than a decade. However, Bezeq clarifies that the possible effects of canceling structural separation are not included in the updated forecast for 2026.
Structural separation requires Bezeq to maintain a separation between itself and its subsidiaries, including yes, among other things at the level of management, employees, assets, and the transfer of commercial information. Canceling the separation may allow Bezeq to consolidate activities and realize synergies between the companies, and among other things, promote the merger of yes into Bezeq. The company is working with regulators to cancel the separation, but as of now, the obligation is still anchored in Bezeq's license.
"The process for canceling structural separation is close to completion, and we believe a decision will be reached in the coming weeks," said Chairman Tomer Raved during an investor call on August 5.
