Bezeq — The Israeli Telecommunication Corp.
Bezeq — The Israeli Telecommunication Corp. | TASE | Value Track
Company Description
Bezeq is Israel’s largest telecommunications group. It operates the national fixed-line infrastructure (historically a monopoly), an accelerating fibre-optic rollout, mobile services (Pelephone), multi-channel television (yes), and ICT and internet services (Bezeq International). The company trades on the Tel Aviv Stock Exchange, employs approximately 8,000 staff, and distributes an ongoing dividend. In 2025 the fibre rollout continued at an accelerated pace, reaching 993,000 subscribers.
Financial Performance
| Metric | 2023 | 2024 | 2025 |
|---|---|---|---|
| Revenue (NIS M) | 9,103 | 8,884 | 8,702 |
| Operating Profit (NIS M) | 1,779 | 1,652 | 2,017 |
| Net Income (M₪) | 1,189 | 1,073 | 1,417 |
| EBITDA (NIS M) | 3,646 | 3,496 | 3,704 |
| EBITDA Margin | 40.1% | 39.4% | 42.6% |
| Net Margin | 13.1% | 12.1% | 16.3% |
| Operating Margin | 19.5% | 18.6% | 23.2% |
| EPS (NIS) | 0.43 | 0.39 | 0.51 |
Balance Sheet & Cash Flow
| Balance-sheet Metric | 2025 |
|---|---|
| Total Assets | 15,938M₪ |
| Shareholders’ Equity | 2,955M₪ |
| Net Debt | 8,076M₪ |
| Net Debt / EBITDA | 2.2x |
| FCF (2025) | 1,133M₪ |
| Dividend (2025) | 975M₪ |
Fibre-Optic Rollout
Competitive Position — Sources of the Moat
A legacy telecoms competitive moat is not a single construct — it is layered. Bezeq exhibits five distinct layers, each with its own dynamics:
A calibrated assessment of the strength of each layer is available to qualified clients of the Family Office.
How to Think About This Company
The difference between surface-level analysis and professional thinking often lies in the variables that are not immediately visible. The difference between surface-level analysis and professional thinking often lies in the variables that are not immediately visible.
Risks & Items to Monitor
Scenario Framework
The framework below describes the conditions that would need to hold under each scenario — not a price forecast. These conditions are what a professional analyst monitors over time, and what allows assumptions to be updated as reality changes.
Scenarios are descriptive, not predictive. They outline possible conditions, not expected outcomes. These scenarios carry no probability assessment, no preferred direction, and no expectation regarding which, if any, will materialise.
- Fibre rollout continues at an accelerated pace (>15% annual subscriber growth)
- ARPU continues to rise via product mix (not price increases)
- yes stabilises operationally — restructuring concludes without cost overruns
- Wholesale-segment regulation remains stable or moderate
- Dividend distribution continues; net debt / EBITDA remains around 2x
- Gradual erosion in legacy fixed-line revenues
- Fibre partially offsets the erosion
- yes acts as a visible drag on reported earnings but not on cash flow
- No material regulatory event in either direction
- Dividend is maintained at the current level
- Accelerated fibre competition — a major new operator enters
- yes restructuring costs materially overshoot the budget
- Elevated interest rates persist — financing costs pressure cash flow
- Unfavourable regulatory change in wholesale pricing
- Dividend is pressured as FCF contracts
Analytical Lens — The Questions We Ask
In professional company analysis, the question is not "is this good?" but rather "through which lenses must this company be examined so that we do not miss what matters most?" Every Bakshi Finance analysis passes through six lenses. The text below is not a judgement — it is a map of the questions this analysis is intended to answer. The specific answers for Bezeq appear in the "How to Think About This Company" section above.
The analysis is based on an internal multi-factor analytical framework used in professional portfolio management. The framework maps the questions; the answers appear woven through the analysis above.
What the lens is not: there is no rating, no score, no comparison between this company and another, and no preference expressed. The same six questions are asked of every company on the site — what varies is the answers, not the instrument.
This framework is intended to structure analysis, not to produce an investment conclusion.
Key Observations
1. The business identity. Bezeq is Israel’s largest telecommunications group — fixed-line infrastructure (historical monopoly position), an accelerating fibre-optic rollout, mobile (Pelephone), television (yes), and ICT services. Revenue 2025: NIS 8,702M (~2% Y/Y decline) [2025 Annual Report, Maya].
2. Financial pivot points. Net Income 2025: NIS 1,417M (+32% Y/Y). EBITDA margin: 42.6%. FCF: NIS 1,133M. Dividend: NIS 975M (5.6% yield). Net Debt/EBITDA: 2.2x. 993K fibre subscribers (+76% Y/Y).
3. Three critical crossroads. (a) the fibre-rollout trajectory and the derived revenue cadence; (b) the outcome of the wholesale-pricing review at the Ministry of Communications; (c) the capital structure — financing costs versus dividend flexibility. Each affects the reported statements in a different direction.
4. What this site does not answer. The analysis does not answer the question "hold or not". It provides the lenses through which that decision is made with greater rigour. The decision rests with the client.
This summary is not a recommendation. It is a factual list of what the analysis has identified.
Disclosure: This document does not constitute investment advice, investment marketing, or a recommendation to buy or sell securities. The information is presented for informational purposes only and is not a substitute for professional advice. Investing in securities involves risk, including loss of principal. Investors should conduct independent due diligence and consult a licensed professional before making any investment.
Sources: The analysis is based on official financial filings (2025 Annual Report, 2023–2025 quarterly reports) as published on the Maya system of the Israel Securities Authority. As of 06.04.2026.
Bakshi Finance — Family Office