Interim report
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8 Bezeq Press Release BEZEQ GROUP REPORTS SECOND QUARTER 2026 FINANCIAL RESULTS Holon , Israel - August 5 , 2026 - Bezeq - The Israeli Telecommunications Corp. , Ltd. ( TASE : BEZQ ) , Israel's leading telecommunications provider , today announced its financial results for the three months ended June 30th , 2026. Details about the investor earnings presentation webcast to be held today are included below in this press release . Bezeq Group Q2 2026 Financial Highlights¹ • Revenue growth : Group core revenues increased 4 % , reaching NIS 2.03 billion • Higher profitability : Comp EBITDA rose 6.2 % to NIS 978 million ; Comp Net Profit grew 38 % to NIS 315 million • Shareholder value : board of directors recommended a dividend distribution of NIS 415 million ( NIS 0.15 per share ) and launched a new share repurchase plan of NIS 100 million . This follows the completion of the company's previous buyback program totaling NIS 150 million • Further acceleration in fiber momentum : fiber network deployment reached over 3 million homes passed , with 4.4 % growth in retail broadband ARPU reaching NIS 142 and 35 % take - up • Pelephone recorded growth in revenues , EBITDA and net profit , despite the impact of the war , together with continued growth in subscribers . Pelephone continues to lead the Israeli cellular market in 5G with over 60 % of its customers connected to its 5G network • Turnaround trend at yes continues , recording second consecutive quarter of net profit . Comp net profit grew by NIS 34 million and Comp EBITDA grew 27 % , the highest quarterly revenues recorded in eight years ( NIS 348 million ) Tomer Raved , Bezeq Chairman , stated : " The strong results achieved in the second quarter demonstrate the operational momentum across the Group , which reflects consistent growth across all financial metrics , as well as the expansion of our customer base across all business segments - from subscribers joining Bezeq's fiber network , to the growth in Pelephone's 5G subscribers , and a higher number of subscribers and profitability at yes . The critical importance of a digital infrastructure during this period has reinforced all our core engines . We anticipate a continued expansion , both through acquisitions , and growth - supportive investments in the international infrastructure and cable sector . The recent quarters further underscore the success of our strategic compass , led by the management teams in all segments , and the continued unprecedented growth in the Group's profitability metrics . Looking ahead , in addition to organic growth , we are actively exploring merger and acquisition opportunities to support the Group's strategy , that will allow us to create technological synergies and strengthen our competitive advantage in the market . Similarly , we are working vigorously to establish 1 Q2-2026 and H1-2026 results in this earnings release are presented in comparison to Q2-2025 and H1-2025 results , respectively , unless otherwise stated BEZEQ GROUP REPORTS SECOND QUARTER 2026 FINANCIAL RESULTS PAGE | 1
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Press Release BEZEQ GROUP REPORTS SECOND QUARTER 2026 FINANCIAL RESULTS PAGE | 2 Israel's position as a global digital hub by building the submarine cable project. This national project will ensure redundancy and communications security. It will connect us to the global data routes and serve as a strategic growth engine in years to come." Yohai Benita, Bezeq Group CFO , commented: "The quarterly results reflect the continued strong financial performance of the Group, driven by growth in core activities, higher profitability, and a robust cash flow. We continue to manage the Group's capital structure responsibly, while maintaining financial flexibility. The financial strength has allowed us to continue delivering value to our investors, including the recommendation of a dividend distribution of NIS 415 million, and an additional share buyback program totaling NIS 100 million. These steps reflect our confidence in the Group’s operations, its ability to continue generating significant cash flow, and our commitment to creating long-term value for our shareholders." Nir David, Bezeq CEO, stated: "The current quarter demonstrates our strength and ability to continue recording consistent growth across all core metrics, driven by the company’s strategic plans. Core revenues totaled NIS 998 million, a 2% increase year-over-year. Comparable EBITDA reached NIS 682 million, representing 6% growth year-over-year, and comparable net profit was NIS 259 million, registering an impressive 20% increase year-over-year, due to higher revenues and lower operating and financing expenses. These results reflect the growth in our expanding activities in transmission, data communications, cloud and digital, as well as improved operational efficiency following the completion of a significant phase in the fiber-optic project. ARPU also continued to rise, reaching NIS 142 in the quarter, a figure indicating the high value our customers receive. Similarly, we reached over 3 million households in our fiber deployment project, reinforcing our position as the leader of the telecommunications market in Israel. We will continue to implement our strategy, invest in advanced infrastructure and future growth engines, lead in innovation, and provide our customers with the most advanced and highest-quality solutions." Ilan Sigal, CEO of Pelephone and yes, said: "The quarterly results reflect the success ful implementation of our strategic initiatives in recent years at Pelephone and yes. The companies demonstrate continued growth, improved profitability, and the strengthening of their competitive positioning, while consistently investing in infrastructure, innovation, and customer experience. At Pelephone, we continue to lead the 5G mobile market in Israel, with over 60% of our customers connected to our 5G network. We recorded growth in revenue, EBITDA, and net profit, while consistently increasing our subscriber base. Concurrently, we are advancing strategic initiatives to expand our areas of activity and accelerate growth engines, including the signing of the memorandum of understanding to acquire Wecom. At yes, we are seeing the fruits of the commercial initiatives implemented in recent years. We reported our highest quarterly revenue in approximately eight years, as well as a second consecutive quarter of comparable net profit, and our highest comparable EBITDA in three years. These results reflect the successful transition to a more diverse, efficient, and profitable operating model, while focusing on the expansion of revenue streams and continuous improvement in operational efficiency." Meni Baruch , CEO of Bezeq International TECH , added: "We recorded strong second quarter results with continued growth in all business activities, driven by the ongoing expansion of integration
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Press Release BEZEQ GROUP REPORTS SECOND QUARTER 2026 FINANCIAL RESULTS PAGE | 3 services and growing demand for cloud, cyber, and advanced infrastructure solutions. This activity is a significant growth engine for the company, complementing our core business in communications , international data and data centers. We remain focused on expanding our operations in areas with high growth potential, while driving efficiency initiatives and business transformation . Our goal is to further improve profitability and strengthen our position as our customers' leading technology partner." Bezeq Group Results (Consolidated) Q2 2026 Q2 2025 % change H1 2026 H1 2025 % change (NIS millions) (NIS millions) Revenues (reported) 2,165 2,136 1.4% 4,334 4,371 (0.8%) Core revenues(1) 2,025 1,947 4.0% 4,055 3,925 3.3% Comp EBITDA(2) 978 921 6.2% 1,906 1,838 3.7% Comp EBITDA margin 45.2% 43.1% 44.0% 42.0% Comp net profit(2) 315 229 38% 615 517 19% CapEx (gross) 404 431 (6.3%) 836 850 (1.6%) Free cash flow(3) 155 230 (33%) 610 492 24% Net debt 5,219 4,916 6.2% 5,219 4,916 6.2% (1) Group revenues excluding Bezeq Fixed -Line telephony revenues, Pelephone interconnect fees, Bezeq International consumer revenues and Bezeq Online revenues (2) Excluding other operating expenses/income, net, the overall impact of losses/gains from impairment/increase in value of assets and stock-based compensation (3) Cash flow from operating activities less net payments for investments and leases Core Revenues increased 4.0%, to NIS 2.03 billion, mainly due to higher revenues across all key Group segments. Comp EBITDA amounted to NIS 978 million, up 6.2%. Comp Net Profit totaled NIS 315 million, up 38%, mainly due to higher revenues and lower financing and operating expenses, after adjusting for the change in yes' valuation in Q2-2025. Free cash flow was NIS 155 million, compared to NIS 230 million in the corresponding quarter, primarily due to changes in working capital. Free cash flow in the first half of 2026 was NIS 610 million, compared to NIS 492 million in the corresponding period. Net financial debt for the Group amounted to NIS 5.22 billion as of June 30, 2026, compared to NIS 4.92 billion as of June 30, 2025. The Group's net financial debt to Comp EBITDA ratio was 1.6 times as of June 30, 2026, compared to 1.5 times as of June 30, 2025.
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Press Release BEZEQ GROUP REPORTS SECOND QUARTER 2026 FINANCIAL RESULTS PAGE | 4 Shareholder Remuneration In accordance with the Company's dividend policy, the Board of Directors recommended to the General Meeting of Shareholders a dividend distribution of NIS 415 million, which at the time of approval represented approximately NIS 0.15 per share. The ex-dividend date will be September 15, 2026. The payment is expected to be made on September 24, 2026. In addition, t he Company will launch a new share repurchase plan of NIS 100 million as part of its multi-year program of NIS 800 million. 2026 Outlook (Unchanged) 2025 Performance 2026 )1(Outlook Comp EBITDA NIS 3.74 billion NIS 3.7 – 3.8 billion Comp net profit NIS 1.09 billion NIS 1.0 – 1.1 billion CapEx NIS 1.68 billion ~ NIS 1.6 billion (1) The Company will report, as required, deviations of more/less than 10% of the midpoint of the Outlook range, where a range exists Bezeq Fixed-Line Results Bezeq Fixed-Line – Financial data Q2 2026 Q2 2025 % change H1 2026 H1 2025 % change (NIS millions) (NIS millions) Total revenues 1,114 1,102 1.1% 2,224 2,203 1.0% Core revenues(1) 998 979 1.9% 1,995 1,952 2.2% Broadband 502 508 (1.2%) 1,015 1,013 0.2% Transmission and data 317 309 2.6% 630 611 3.1% Telephony 116 123 (5.7%) 229 251 (8.8%) Cloud & digital services 93 90 3.3% 187 177 5.6% Other revenues 86 72 19% 163 151 7.9% Comp EBITDA 682 643 6.1% 1,340 1,291 3.8% Comp EBITDA margin 61.2% 58.3% 60.3% 58.6% Comp net profit 259 216 20% 524 477 9.9% CapEx (gross) 239 266 (10%) 509 560 (9.1%) Free cash flow 220 230 (4.3%) 624 450 39% (1) Total fixed-line revenues excluding telephony revenues
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Press Release BEZEQ GROUP REPORTS SECOND QUARTER 2026 FINANCIAL RESULTS PAGE | 5 Bezeq Fixed-Line – KPIs Q2 2026 Q1 2026 Q2 2025 Total broadband lines (retail and wholesale, end of the period, in thousands) 1,472 1,472 1,476 Of which: Total fiber optic subscribers (retail and wholesale, in thousands) 1,061 1,029 907 Total retail broadband lines (fiber and copper, end of the period, in thousands) 956 968 999 Of which: Retail fiber optic subscribers (in thousands) 655 643 583 Total wholesale broadband lines (end of period, in thousands) 516 504 477 Of which: Wholesale fiber optic subscribers (in thousands) 406 386 324 Fiber optics deployed – Homes passed (end of the period, in thousands) 3,028 2,974 2,774 Average monthly revenue per broadband Internet subscriber (NIS) – Retail 142 139 136 Fixed-Line core revenues increased 1.9% to NIS 998 million, driven by higher revenues from transmission and data communications, cloud and digital services and infrastructure projects. Comp EBITDA totaled NIS 682 million, up 6.1%. Comp net profit amounted to NIS 259 million, up 20%, driven by higher revenues and lower operating and financing expenses. Free cash flow was NIS 220 million, down 4.3%. Free cash flow in the first half of 2026 was NIS 624 million, compared to NIS 450 million in the corresponding period.
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Press Release BEZEQ GROUP REPORTS SECOND QUARTER 2026 FINANCIAL RESULTS PAGE | 6 Pelephone Results2 Pelephone – Financial data Q2 2026 Q2 2025 % change H1 2026 H1 2025 % change (NIS millions) (NIS millions) Total revenues 511 496 3.0% 1,029 1,021 0.8% Service revenues 363 361 0.6% 719 721 (0.3%) Equipment revenues 148 135 9.6% 310 300 3.3% Comp EBITDA 190 186 2.2% 368 372 (1.1%) Comp EBITDA margin 37.2% 37.5% 35.8% 36.4% Comp net profit 34 32 6.3% 56 65 (14%) CapEx (gross) 99 91 8.8% 191 175 9.1% Free cash flow (49) 43 (34) 38 Pelephone – KPIs Q2 2026 Q1 2026 Q2 2025 Total subscribers (end of period, in thousands) 2,707 2,699 2,645 Postpaid subscribers (end of period, in thousands) 2,370 2,349 2,279 Prepaid subscribers (end of period, in thousands) 337 350 366 5G subscriber plans (end of period, in thousands) 1,473 1,425 1,315 Average revenue per user (ARPU, NIS) 45 44 46 Revenues, Comp EBITDA and Comp net profit increased despite the impact of the war with Iran on roaming revenues. Revenues from services totaled NIS 363 million, up 0.6%. Equipment revenues were NIS 148 million, up 9.6%. Comp EBITDA was NIS 190 million, up 2.2%. Comp net profit was NIS 34 million, up 6.3%. Negative free cash flo w was NIS 49 million, compared to free cash flow of NIS 43 million in the corresponding quarter . Free cash flow was impacted by changes in working capital , mainly from payments to employees due to the signing of a new collective agreement and the timing of end-user equipment procurement. 2 Pelephone revenues and ARPU in this earnings release are presented excluding interconnect fees, unless stated otherwise
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Press Release BEZEQ GROUP REPORTS SECOND QUARTER 2026 FINANCIAL RESULTS PAGE | 7 yes Results yes – Financial data Q2 2026 Q2 2025(1) % change H1 2026 H1 2025 % change (NIS millions) (NIS millions) Revenues 348 320 8.7% 691 639 8.1% Comp EBITDA 71 56 27% 127 105 21% Comp EBITDA margin 20.4% 17.5% 18.4% 16.4% Comp net profit (loss) 12 (22) 16 (27) CapEx (gross) 49 57 (14%) 110 93 18% Free cash flow 1 (38) 22 (5) (1) Proforma numbers yes – KPIs Q2 2026 Q1 2026 Q2 2025 Total number of TV subscribers (end of period, in thousands) 563 565 562 IP subscribers (end of period, in thousands 506 499 480 Fiber customers (end of period, in thousands) 144 132 94 ARPU, NIS (1) 204 202 189 (1) ARPU is calculated by dividing yes' total revenue (excluding revenue from content sales to external broadcasters and revenue from terminal equipment) by the average number of relevant subscribers during the period. Revenues were NIS 348 million, up 8.7%, representing the highest quarterly revenues in eight years (since Q4-2018). The increase in revenues was due to higher revenues from the TV + Bezeq fiber bundle together with revenues from the Partner transaction. Comp EBITDA was NIS 71 million, up 27%. Comp net profit was NIS 12 million, compared to Comp net loss of NIS 22 million in the corresponding quarter. Comp EBITDA and Comp net profit were the highest quarterly results in three years (since Q2-2023) and were positively impacted by higher revenues and lower expenses. Free cash flow was NIS 1 million, compared to negative free cash flow of NIS 38 million in the corresponding quarter. Free cash flow in the first half of 2026 was NIS 22 million, compared to negative free cash flow of NIS 5 million in the corresponding period. The improvement in free cash flow was mainly due to higher profits and changes in working capital.
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Press Release BEZEQ GROUP REPORTS SECOND QUARTER 2026 FINANCIAL RESULTS PAGE | 8 The number of yes TV subscribers as of June 30, 2026, was 563k, down 2k sequentially, and up 1k year-over-year. Bezeq International TECH Results Bezeq International – Financial data Q2 2026 Q2 2025 % change H1 2026 H1 2025 % change (NIS millions) (NIS millions) Revenues 276 263 4.9% 565 536 5.4% Comp EBITDA 39 37 5.4% 79 71 11% Comp EBITDA margin 14.1% 14.1% 14.0% 13.2% Comp net profit (loss) 11 3 267% 19 1 1,800% CapEx (gross) 14 15 (6.7%) 28 27 3.7% Free cash flow (13) - NM 1 19 (95%) Revenues totaled NIS 276 million, up 4.9%, mainly due to higher revenues from business activities, partially offset by lower revenues from consumer services. Comp EBITDA was NIS 39 million, up 5.4%. Comp net profit was NIS 11 million, compared to NIS 3 million in the corresponding quarter. The increase in Comp net profit was mainly due to higher revenues and financing income. Negative free cash flow was NIS 13 million, compared to breakeven in the corresponding quarter. Free cash flow was mainly impacted by changes in working capital.
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Press Release BEZEQ GROUP REPORTS SECOND QUARTER 2026 FINANCIAL RESULTS PAGE | 9 Conference Call & Webcast Information Bezeq will conduct its Second Quarter 2026 earnings webcast call on Wednesday, August 5th, 2026, at 8:00 AM EST / 3:00 PM Israel time, hosted by Mr. Tomer Raved, Bezeq's Chairman, Mr. Nir David, Bezeq's CEO, Mr. Ilan Sigal, CEO of Pelephone & yes, and Mr. Yohai Benita, Bezeq Group's Chief Financial Officer . Participants are invited to join the webcast by clicking : https://us06web.zoom.us/j/5505984141?pwd=aX849tJ122cwzKuZxhmZMYRuwYboqZ.1&omn=8238 9626967 About "Bezeq" The Israeli Telecommunications Corp., Ltd. Bezeq Group defines the future of communications in Israel as the nation’s digital backbone and a central engine of economic growth. Through sustained investment in powerful, advanced national infrastructure, we enable smart connectivity for every home, bu siness, and public institution across the country. With financial strength, AI-driven technological leadership, operational excellence, and a forward-looking global strategic perspective, we lead market transformation, strengthen Israel’s competitive position in the digital era, and deliver sustainable, lo ng-term value to our customers, partners, and shareholders. For more information about Bezeq, please visit the corporate website at http://ir.bezeq.co.il. This press release contains partial information from the public reports of Bezeq under the Israeli Securities Law, which can be accessed at the Israeli Securities Authority's website, www.magna.isa.gov.il. A review of this press release is not a substitute for a review of the detailed reports of Bezeq under the Securities Law and is not meant to replace or qualify them; rather, the press release is prepared merely for the convenience of the reader, with th e understanding that the detailed reports are being reviewed simultaneously. No representation is made regarding the accuracy or completeness of the information contained herein. This press release does not constitute an offer or invitation to purchase or subscribe to any securities. Neither this presentation nor anything contained herein shall form the basis of or be relied upon in connection with any contract or commitment whatsoever. Investor Relations Contact: Media Relations Contact: Mr. Naftali Sternlicht Ms. Tali Tuval Bezeq Bezeq Phone: +972-50-530-5955 Phone: +972-3-626-2600 Email: ir@bezeq.co.il Email: pr@bezeq.co.il
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Press Release BEZEQ GROUP REPORTS SECOND QUARTER 2026 FINANCIAL RESULTS PAGE | 10 "Bezeq" The Israel Telecommunication Corp., Limited ` Six months ended June 30 Three months ended June 30 Year ended December 31 2026 2025 2026 2025 2025 (Unaudited) (Unaudited) (Unaudited) (Unaudited) (Audited) NIS million NIS million NIS million NIS million NIS million Revenues 4,334 4,371 2,165 2,136 8,702 Costs of activity General and operating expenses 1,504 1,508 736 679 2,860 Salaries 932 947 455 451 1,859 Depreciation, amortization, impairment losses and cancellation of impairment loss 989 839 502 383 1,687 Other operating expenses income), net ) 111 5 (1) (8) 279 Total operating expenses 3,536 3,299 1,692 1,505 6,685 Operating profit 798 1,072 473 631 2,017 Financing expenses (income) Financing expenses 249 268 146 175 498 Financing income (111 ) (96 ) (56 ) (48 ) (191 ) Financing expenses, net 138 172 90 127 307 Profit after financing expenses, net 660 900 383 504 1,710 Loss in investee company (1) 4 (3) 1 19 Profit before income tax 661 896 386 503 1,691 Income tax 142 167 78 77 274 Profit for the period 519 729 308 426 1,417 Earnings per share (NIS) Basic and diluted earnings per share (in NIS) 0.19 0.26 0.11 0.15 0.51
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Press Release BEZEQ GROUP REPORTS SECOND QUARTER 2026 FINANCIAL RESULTS PAGE | 11 "Bezeq" The Israel Telecommunication Corp., Limited Condensed Consolidated Interim Statements of Financial Position June 30, 2026 June 30, 2025 December 31, 2025 (Unaudited) (Unaudited) (Audited) Assets NIS million NIS million NIS million Cash and cash equivalents 631 789 643 Investments 1,252 1,792 2,187 Trade receivables 1,476 1,393 1,443 Other receivables 200 186 211 Inventory 124 112 98 Total current assets 3,683 4,272 4,582 Trade and other receivables 431 397 398 Right-of-use assets 1,759 1,761 1,754 Fixed assets 7,486 7,349 7,469 Broadcasting rights 401 207 400 Intangible assets 1,092 980 1,084 Deferred expenses and non-current investments 292 252 251 Total non-current assets 11,461 10,946 11,356 Total assets 15,144 15,218 15,938
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Press Release BEZEQ GROUP REPORTS SECOND QUARTER 2026 FINANCIAL RESULTS PAGE | 12 "Bezeq" The Israel Telecommunication Corp., Limited Condensed Consolidated Interim Statements of Financial Position (Contd.) June 30, 2026 June 30, 2025 December 31, 2025 (Unaudited) (Unaudited) (Audited) Liabilities and equity NIS million NIS million NIS million Debentures, loans and borrowings 944 1,681 992 Current maturities of liabilities for leases 456 426 425 Trade and other payables 1,947 1,824 1,901 Employee benefits 558 333 542 Provisions 70 82 174 Total current liabilities 3,975 4,346 4,034 Loans and debentures 6,158 5,816 6,818 Liability for leases 1,522 1,522 1,530 Employee benefits 230 314 219 Derivatives and other liabilities 377 284 292 Liabilities for deferred taxes 68 60 56 Provisions 36 32 34 Total non-current liabilities 8,391 8,028 8,949 Total liabilities 12,366 12,374 12,983 Total equity 2,778 2,844 2,955 Total liabilities and equity 15,144 15,218 15,938
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Press Release BEZEQ GROUP REPORTS SECOND QUARTER 2026 FINANCIAL RESULTS PAGE | 13 Bezeq" The Israel Telecommunication Corp., Limited Condensed Consolidated Interim Statements of Cash Flows Six months ended June 30 Three months ended June 30 Year ended December 31 2026 2025 2026 2025 2025 (Unaudited) (Unaudited) (Unaudited) (Unaudited) (Audited) NIS million NIS million NIS million NIS million NIS million Cash flows from operating activities Profit for the period 519 729 308 426 1,417 Adjustments: Depreciation, amortization, impairment losses and cancellation of impairment loss 989 839 502 383 1,687 Capital gain, net (3) (7) (3) (2) (7) Financing expenses, net 155 191 102 134 342 Recovery of excess cost - - - - (36 ) Loss (profit) in investee company (1) 4 (3) 1 19 Other non-cash expenses 3 2 - - 2 Stock-based compensation 8 11 4 7 22 Income tax expenses 142 167 78 77 274 Change in trade and other receivables (117 ) (30 ) (61 ) 55 (39 ) Change in inventory (65 ) 42 (58 ) 27 54 Change in trade and other payables 168 24 (57 ) (139 ) 129 Change in provisions (35 ) (1) (18 ) (7) 22 Change in employee benefits 21 (51 ) (55 ) (50 ) 112 Change in broadcasting rights (1) (91 ) (4) (92 ) (283 ) Miscellaneous - (3) - (3) (16 ) Net income tax paid (119 ) (262 ) (78 ) (84 ) (437 ) Net cash from operating activities 1,664 1,564 657 733 3,262
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Press Release BEZEQ GROUP REPORTS SECOND QUARTER 2026 FINANCIAL RESULTS PAGE | 14 Bezeq" The Israel Telecommunication Corp., Limited Condensed Consolidated Interim Statements of Cash Flows (Cont'd) Six months ended June 30 Three months ended June 30 Year ended December 31 2026 2025 2026 2025 2025 (Unaudited) (Unaudited) (Unaudited) (Unaudited) (Audited) NIS million NIS million NIS million NIS million NIS million Cash flows for investing activities Purchase of fixed assets (586 ) (660 ) (276 ) (335 ) (1,265 ) Investment in intangible assets and deferred expenses (250 ) (190 ) (128 ) (96 ) (413 ) Investment in bank deposits and other financial investments - (568 ) - - (2,335 ) Proceeds from bank deposits and other financial investments 950 719 950 462 2,110 Proceeds from the sale of fixed assets 7 35 6 32 40 Interest received from bank deposits 37 32 28 15 80 Investment in affiliate - (11 ) - - (31 ) Proceeds from sale of subsidiary, net - 28 - 28 28 Miscellaneous (32 ) 3 (16 ) 2 (14 ) Net cash from (used for) investing activities 126 (612 ) 564 108 (1,800 )
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Press Release BEZEQ GROUP REPORTS SECOND QUARTER 2026 FINANCIAL RESULTS PAGE | 15 "Bezeq" The Israel Telecommunication Corp., Limited Condensed Consolidated Interim Statements of Cash Flows (Cont'd) Six months ended June 30 Three months ended June 30 Year ended December 31 2026 2025 2026 2025 2025 (Unaudited) (Unaudited) (Unaudited) (Unaudited) (Audited) NIS million NIS million NIS million NIS million NIS million Cash flow from financing activities Issue of debentures and receipt of loans - - - - 1,190 Repayment of debentures and loans (765 ) (205 ) (765 ) (205 ) (1,123 ) Payments of principal and interest for leases (225 ) (257 ) (104 ) (104 ) (491 ) Interest paid (118 ) (121 ) (91 ) (96 ) (238 ) Dividends paid (549 ) (392 ) (549 ) (392 ) (975 ) Repurchase of shares (150 ) - (150 ) - - Payment for expired hedging transactions 5 - 5 - 6 Net cash used for financing activities (1,802 ) (975 ) (1,654 ) (797 ) (1,631 ) Increase (decrease) in cash and cash equivalents, net (12 ) (23 ) (433 ) 44 (169 ) Cash and cash equivalents at beginning of period 643 784 1,064 724 784 Change in cash balance of subsidiary sold - 28 - 21 28 Cash and cash equivalents at end of period 631 789 631 789 643