Near-Universal Fibre Rollout and Profit Growth Could Be a Game Changer for Bezeq (TASE:BEZQ)

• In the past week, Bezeq The Israel Telecommunication Corp. Ltd reported third quarter 2025 earnings, showing sales of ILS 2,145 million and net income of ILS 446 million, both compared to the same period last year.
• A standout factor was Bezeq’s near completion of its fibre optics network, now reaching 90% of Israeli households, fueling higher net profit despite a modest dip in revenue.
• We'll explore how the broad fibre rollout and profit growth enhance Bezeq's investment narrative amid recent performance changes.

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What Is Bezeq The Israel Telecommunication's Investment Narrative?

Owning shares in Bezeq means believing in the ongoing value of its extensive fibre network, which now covers 90% of Israeli households, a milestone that has fueled a sharp increase in net profit despite declining sales. The latest earnings report has real potential to alter the immediate story: while prior analysis pegged sluggish revenue growth and high debt as the main red flags, the recent surge in net income lends more weight to Bezeq’s ability to manage costs and expand margins, especially as fibre adoption accelerates. The upside rests on successful monetization of this infrastructure and stabilization in top-line figures. Still, the muted share price reaction over the past week suggests investors might be waiting to see if this improved profitability is sustainable or if competitive, regulatory, and debt-related risks could reassert themselves in later quarters.

But despite the strong profit bump, Bezeq’s high debt load remains a concern that shouldn’t be ignored. Despite retreating, Bezeq The Israel Telecommunication's shares might still be trading 29% above their fair value. Discover the potential downside here.

Exploring Other Perspectives

Within the Simply Wall St Community, just one retail investor submitted a fair value estimate, pegging Bezeq at ₪7.34. While this single view suggests consensus on price, other commentators are focused on the company’s growing profit margins, though concerns about debt and slow revenue growth continue to shape expectations for the stock.

Explore another fair value estimate on Bezeq The Israel Telecommunication - why the stock might be worth as much as 13% more than the current price!

Build Your Own Bezeq The Israel Telecommunication Narrative

Disagree with this assessment? Create your own narrative in under 3 minutes - extraordinary investment returns rarely come from following the herd.

• A great starting point for your Bezeq The Israel Telecommunication research is our analysis highlighting 2 key rewards and 2 important warning signs that could impact your investment decision.
• Our free Bezeq The Israel Telecommunication research report provides a comprehensive fundamental analysis summarized in a single visual - the Snowflake - making it easy to evaluate Bezeq The Israel Telecommunication's overall financial health at a glance.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

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