Bezeq Israel Telecommunications Company Ltd. (TASE:BZEQ) said it will issue a dividend for the first time since 2018, totaling 50% of the net profit of NIS 240 million in the fourth quarter of 2021.
In its fourth quarter and full year 2021 results reported stronger revenue from landline activities and mobile phone unit PelePhone because of the restoration of international flights and roaming services overseas.
Bezeq profit higher despite fiber optic investment
Revenue in 2021 was NIS 8.82 billion, up 1% from 2020, and the first year-on-year rise in revenue since 2016. Net profit in 2021 was NIS 1.18 billion, up 48.6% from 2020.
The company reported that fiber optic deployment in 2022 will reach 1.4 million households and due to expanding investment, Bezeq’s free cash flow in 2021 fell to NIS 1.03 billion.
Bezeq chairman Gil Sharon said, “The excellent financial results, stemmed mainly from the improvement in the performance of PelePhone and Yes, along with the increase in Bezeq’s Internet activity due to the successful deployment of fiber optic cables. We succeeded in reducing the company’s net debt by 10% to NIS 6.1 billion.
Bezeq CEO David Mizrahi added, “After long years of consistent erosion in the company’s revenue, we have completed a second consecutive year of growth.”
Published by Globes, Israel business news – en.globes.co.il – on March 23, 2022.
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