Bezeq Group Reports Strong Q2 2023 Results with Record Profit and Dividend Distribution

Bezeq Group, a leading telecommunications company in Israel, has announced its financial results for the second quarter of 2023, showcasing impressive growth in revenues and achieving its highest adjusted net profit since 2017. The company's robust performance has led to positive market sentiment, with its shares rising by 1.8% at the opening of trading on Wednesday.

During the second quarter, Bezeq's net profit surged by 14.2%, contributing to the company's decision to distribute a dividend of NIS 392 million to its investors. This dividend distribution underscores Bezeq's commitment to rewarding its shareholders and showcasing its strong financial position.

The positive financial outcomes are a result of Bezeq's strategic initiatives, which have propelled the company forward over the past two years. Despite the challenging economic landscape, Bezeq's growth strategy has proven successful, enabling the company to achieve steady growth and position itself as a leader in the media market within Israel.

Bezeq's financial highlights for the second quarter of 2023 include:

• Revenues of approximately NIS 2.3 billion, marking a significant increase of approximately 3.3%. This growth can be attributed to increased revenues from Bezeq Kavi and Yes, indicating a broader customer base and stronger market presence.
• Net profit of approximately NIS 343 million, reflecting an impressive growth rate of around 11.7% compared to the corresponding quarter last year.
• EBITDA (Earnings Before Interest, Taxes, Depreciation, and Amortization) reaching approximately NIS 974 million, marking a notable increase of approximately 5.8% compared to the same quarter in the previous year.
• Adjusted EBITDA of approximately NIS 987 million, demonstrating a remarkable increase of about 6.8%, with an adjusted EBITDA rate of around 42.9%.

Furthermore, Bezeq's performance for the first half of 2023 also showcases strong growth:

• Revenues for the first half of 2023 totaled approximately NIS 4.6 billion, representing a solid increase of approximately 2.8% compared to the corresponding period in the previous year.
• Adjusted net profit for the first half of 2023 amounted to approximately NIS 675 million, indicating a commendable growth rate of about 6.8% compared to the same period in 2022.

Bezeq's commitment to prudent financial management is evident in its reduction of net financial debt. The company's net financial debt at the end of the first half of the year decreased by approximately 3.9%, amounting to approximately NIS 5.42 billion, compared to approximately NIS 5.64 billion at the end of June 2022.

Looking ahead, Bezeq has raised its adjusted net profit forecast for the entire year of 2023 to approximately NIS 1.32 billion, up from the original forecast of approximately NIS 1.2 billion. The company maintains its EBITDA and fiber deployment forecasts, with a target of reaching approximately 2 million households.

In line with its dividend policy, Bezeq's board of directors has recommended a dividend of approximately NIS 392 million (approximately NIS 0.14 per share), to be distributed on October 11, 2023, solidifying the company's commitment to value creation for its shareholders.