Bezeq records 2.1% revenue increase in 2Q21

13 Aug 2021

Israel’s Bezeq has published its financial results for the quarter ended 30 June 2021, posting a 2.1% year-on-year increase in revenues, which rose to ILS2.200 billion (USD681 million). Turnover from the company’s fixed line operations was down by 0.5% on an annualised basis in Q2 2021, at ILS1.039 billion, but revenues from mobile unit Pelephone helped more than offset that drop, rising by 7.7% y-o-y to ILS576 million. Meanwhile, reported EBITDA amounted to ILS934 million in 2Q21, down from ILS970 million in the corresponding quarter of 2020, while operating expenses rose by 4.9% y-o-y, to ILS797 million, ‘primarily due to Bezeq Fixed-Line that was impacted by the recognition of expenses for the universal fund for fibre deployment, the positive impact of COVID-19 in Q2-20 and the deployment of fibre’. Bezeq reported a net profit of ILS294 million for 2Q21, up from ILS269 million a year earlier.

In terms of operational indicators, Bezeq reported a retail fixed broadband subscriber base totalling 1.009 million as of 30 June 2021, up from 991,000 a year earlier, although wholesale broadband lines declined from 539,000 to 520,000. Active fixed voice subscriber lines continued on a downward trajectory, falling to 1.615 million at mid-2021, from 1.630 million a year earlier. Bezeq also confirmed progress on its fibre-to-the-premises (FTTP) rollout, revealing that currently ‘over 700,000 households have the capacity to join [the service]’, putting it on target to achieve its stated aim of reaching one million premises by the end of 2021.

In the mobile sector, meanwhile, Bezeq reported that Pelephone’s subscriber base rose to 2.521 million as of end-June 2021, up from 2.365 million at mid-2020. Also of note, the company claimed to have ‘over 400,000 subscribers with 5G plans’ at the end of the reporting period.

Commenting on the company’s quarterly performance, Gil Sharon, Bezeq’s chairman, stated: ‘In the second quarter of 2021, we accelerated the development of the group’s three core pillars – strong results, investment in infrastructure and financial strength. Together, these will reinforce Bezeq’s continued leadership in the Israeli telecom market over the long term, while generating value for all company stakeholders.’

Israel, Bezeq (Israel Telecommunication Corporation), Pelephone