Financial Highlights
Revenues totaled NIS 9.1
billion,
up 1.3%
The highest since 2018
Adjusted EBITDA(1) totaled
NIS 3.82 billion, up 2.2%
The highest since 2018
(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 1.33 billion, up 11.0%
The highest since 2015
(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 1.71 billion, or 19% of revenues,
down 0.3%
The group continues to invest in developing and upgrading telecommunications infrastructure
% - Capex/Sales
Free cash flow totaled
NIS 1.3 billion, down 7.7%
Strong and resilient FCF
Net debt decreased by NIS 427 million,
down 7.6% to NIS 5.2 billion
Upgrade to “Positive” outlook by both rating agencies
Further solidifying financial stability
Board of Directors upgrades the dividend policy to 70% of net
profit and recommends a distribution of NIS 374 million
Upgrade of payout ratio continues
Bezeq Group | Guidance
Adjusted EBITDA (1)
Adjusted net profit (1)
CAPEX
Fiber deployment
Financial stability
2023 Outlook
NIS 3.8 billion
NIS 1.32 billion
NIS 1.75 billion
2 million households
Maintain High Credit Rating, within the AA group
2023 Actual
NIS 3.82 billion
NIS 1.33 billion
NIS 1.71 billion
2.07 million households
Maintain High Credit Rating, within the AA group
2024 Outlook (2)
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
(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 Ambitions
| Mid-term Ambitions Mar 2023 |
Mid-term Ambitions | |
|
Adjusted
EBITDA
CAGR
EBITDA Margin |
1% 41%-43% |
1.5%-2.0% 42%-44% |
| CapEx | Stable CapEx and CapEx/Sales until 2025; gradual reduction thereafter |
16%-18% CapEx/Sales |
| Adjusted EBITDA - CapEx | Increase of NIS 400-500 million | |
|
Free cash flow AL
CAGR
|
Mid single digit | 7%-9% |
| Financial stability | Maintain High Credit Rating within the AA group |
Unchanged |
| Dividend | Increase in dividend subject to maintaining credit rating within the AA group |
| Fiber Take - Up | Approx. 2.7 million households | Take-up rate of ~40% (retail + wholesale) |
| ARPU – Retail Internet | Above NIS 130(1) | Above NIS 140 |
| ARPU - Pelephone | NIS 45-50, excl. interconnect (1) | Unchanged |
| ARPU - yes | NIS 155 (1) | NIS 155-160 |
(1) Mid-term ambition from Nov 2021
Operational Highlights
Bezeq has the highest number of fiber subscribers in Israel with 565K total retail and wholesale take-up
The highest number of fiber subscribers in Israel
Pelephone’s revenues from services is the highest since 2017
Over 1 million subscribers in 5G plans
yes' revenues is
the highest since 2019
Continued growth in fiber subscribers
Bezeq Group | Key Operational Metrics
* Cellular ARPU - excluding interconnect fees