Bezeq records 1.5% increase in revenue in 1Q22

24 May 2022

Israel’s Bezeq has reported revenue growth of 1.5% for the first quarter of 2022, primarily driven by higher revenues from both its fixed and mobile operations. With the company recording a total turnover ILS2.255 billion (USD 673 million) in Q1 2022, up from ILS2.221 billion a year earlier, revenues from fixed line operations rose by 4.0% to ILS1.096 billion, while mobile subsidiary Pelephone generated revenues of ILS600 million, up 5.3% year-on-year. Additionally, Bezeq reported EBITDA of ILS908 million for 1Q22, representing a 14.5% decline from the year earlier period, although the company said that adjusted EBITDA was actually up 4.4% at ILS958 million, primarily due to revenue growth as well as improved profitability at Pelephone. Bezeq’s reported net profit was ILS282 million in the opening three months of 2022, a notable drop from ILS408 million in 1Q21, though adjusted net profit was up 7.7% on an annualised basis, at ILS322 million.

With regards to operational data, Bezeq reported a total of 1.519 million fixed broadband lines in service (retail and wholesale combined) as of 31 March 2022, down from 1.540 million a year earlier, with retail subscriptions accounting for the bulk of that figure, 1.024 million up from 1.001 million. Of note, the telco reported that with its fibre-to-the-premises (FTTP) network reaching 1.19 million premises at the end of the reporting period, it had 124,000 fibre-based fixed broadband subscriptions as of end-March 2022, up from 84,000 three months earlier and just 1,000 at 1Q21. Further, another benefit of the operator’s full fibre rollout appears to be an increase in average broadband speeds, with Bezeq reporting this had increased to 151Mbps in 1Q22, compared to 78Mbps in the first quarter of 2021.

In the mobile sector, meanwhile, Pelephone was reported to be serving a total of 2.583 million subscriptions as of 31 March 2022, up from 2.492 million a year earlier. Post-paid accesses continue to account for the bulk of the total, standing at 2.093 million in 1Q22, up from 2.030 million in March 2021. Of note, it was confirmed that the number of customers with a 5G subscription had increased to 624,000, up from the 590,000 it reported for the end of 2021. Meanwhile, mobile ARPU was ILS490 per month in the most recent quarter, up from ILS462 in 1Q21.

Israel, Bezeq (Israel Telecommunication Corporation), Pelephone