Bezeq 2025 Annual Results Highlights-בזק

Bezeq 2025 Annual Results Highlights

Financial Highlights

Continued growth in Core Revenues⁽¹⁾, totaled NIS 7.96 billion, up 3.0%

Core revenues are ~92% of Group revenues

⁽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

Comp EBITDA⁽¹⁾ totaled
NIS 3.74 billion, up 1.5%

Comp EBITDA margin of 43%

Adjusted EBITDA totaled NIS 4.01 billion, up 7.8%

⁽¹⁾ After adjusting for other operating expenses/income, net, losses/gains from impairment/increase in value of assets and stock-based compensation

% - Comp EBITDA margin

⁽¹⁾ After adjusting for other operating expenses/income, net, losses/gains from impairment/increase in value of assets and stock-based compensation

% - Comp EBITDA margin

Comp net profit¹ totaled NIS 1.09 billion,down 2.2%

Adjusted net profit totaled NIS 1.66 billion, up 31%

(1) After adjusting for other operating expenses/income, net, losses/gains from impairment/increase in value of assets and stock-based compensation

Capital expenditures totaled NIS 1.68 billion, or 19% of revenues, down 3.7%

Beginning of the decelerating phase of the CapEx cycle

Free cash flow totaled NIS 1.13 billion, down 10.9%, due to tax assessment paid in 2025

Strong and resilient FCF

Stable Net Debt, increased by NIS 35 Million, 0.7% to NIS 5.0 Billion

Net Debt to Adjusted EBITDA Ratio 1.4

Lowest Net Debt / Adj. EBITDA ratio since 2010

(1) The decrease in Net Debt/Adjusted EBITDA ratio is due to an increase in EBITDA due to a higher valuation of yes. Excluding the impact of yes’s valuation, the ratio was similar to the corresponding quarter

Recommendation for a total distribution of approximately NIS 700 million

The Company’s board of directors recommended a cash dividend to shareholders of 80% of 2H-2025 net profit of NIS 549 million, or 19.8 agorot per share

In addition, the board recommended a share buyback of NIS 150 million in 2026

FCF CAGR >10% combined with strong balance sheet support resulting in growing and sustainable capital returns to shareholders

Bezeq Group | Guidance

Comp EBITDA ⁽¹⁾

Comp net profit ⁽¹⁾

CAPEX

Results 2025 Comparable

NIS 3.74 billion

NIS 1.09 billion

NIS 1.67 billion

Maintain High Credit
Rating, within the
AA group

2026 Outlook ⁽²⁾

NIS 3.7-3.8 billion

NIS 1.0-1.1 billion

NIS 1.6 billion

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, stock-based compensation and the total effect of valuations

⁽²⁾ The Company will report, as required, deviations of more/less than 10% of the midpoint of the Outlook range, where a range exists

Bezeq Group | Mid-Term Targets

Group Financial

	Targets 2029 (NIS Billion)	CAGR 2025⁽¹⁾-2029⁽²⁾
Core revenues	8.7 - 8.9	2.5%
Comp EBITDA	4.2 – 4.4	3.5%
CapEx	1.5 - 1.6	(2.0%)
Comp EBITDA – CapEx	2.65 - 2.85	7.5%
Comp Net Profit		>8%
FCF		>10%
Financial stability	Maintain High Credit Rating, within the AA group
Shareholder Remuneration	Strive to increase shareholder remuneration

KPIs


Take Up ARPU³	43% ~NIS 150
5G Subs ARPU	85% of total postpaid subs ~NIS 50
TV + fiber bundle subs ARPU⁴	~50% of total subs ~NIS 215

⁽¹⁾ 2025 comparable numbers exclude increase in valuation of yes

⁽²⁾ CAGR is computed according to the mid range of the targets

⁽³⁾ Retail broadband ARPU

⁽⁴⁾ yes ARPU includes all yes revenues, excluding revenues from content sales to external broadcasting entities and revenues from the sale of end-user equipment

Operational Highlights

Bezeq has the highest number of fiber subscribers in Israel with over 1 million subscribers (retail + wholesale)

The highest number of fiber subscribers in Israel

+ Over 1 Million active subscribers on Bezeq's Network

Pelephone’s revenues from services
are the highest in a decade

yes’ ARPU grew 7.5%

Continued growth in fiber subscribers

(1) IP subscribers - number of yes subscribers viewing IP broadcasting through the yes+ and STINGTV services. This includes subscribers that use satellite services as well

Bezeq Group | Key Operational Metrics