Bezeq profit higher despite fiber optic investment

Bezeq CEO Dudu Mizrahi Photo: Tamar Matsafi
Bezeq CEO Dudu Mizrahi Photo: Tamar Matsafi

The Israeli telecommunications company has raised its profit guidance for 2021.

Bezeq Israel Telecommunications Company Ltd. (TASE:BZEQ) reported revenue of NIS 2.14 billion in the third quarter of 2021, down 1.7% from the corresponding quarter of 2020. Adjusted net profit was NIS 295 million, up 1.7% from the corresponding quarter of 2020.

Despite continued major investment in connecting the country to fiber optic cables, Bezeq has raised its 2021 net profit forecast from NIS 1 billion to NIS 1.1 billion.

Bezeq chairman Gil Sharon said, "Today we are outlining the pillars of the Group's business strategy, which highlight our plans and ambitions for the medium-term to create additional significant growth engines. We seek to continue to lead and promote Israel’s digital revolution by offering our customers advanced infrastructure and services, while maintaining our operational excellence and solid results. We aim to accelerate the deployment of fiber optics as the Group's main growth engine, which will be supported by yes as the "triple-play" arm following the expected merger with Bezeq International. In cellular, the transition to 5G will serve as an additional growth engine for the Group."

Bezeq CEO Dudu Mizrahi added, "Less than a year after its launch, Bezeq's fiber network already reaches one million households in Israel, the fastest deployment rate in the world. The average broadband speed at Bezeq exceeded the 100-megabytes threshold for the first time, growing within a year by no less than 46%."

Bezeq's mobile phone unit PelePhone reported third quarter revenue of NIS 417 million, up 5.3% from the corresponding quarter of 2020, and net profit of NIS 23 million compared with a net loss of NIS 12 million in the corresponding quarter of 2020.

Published by Globes, Israel business news - en.globes.co.il - on November 30, 2021.

© Copyright of Globes Publisher Itonut (1983) Ltd., 2021.

Bezeq CEO Dudu Mizrahi Photo: Tamar Matsafi
Bezeq CEO Dudu Mizrahi Photo: Tamar Matsafi
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