Bezeq The Israeli Telecommunication, IL0002300114

Bezeq The Israeli Telecommunication stock faces a yes merger catalyst

Published on 10/08/2026 at 09:23 | Editorial responsibility: Rafael Müller, Editor-in-Chief AD HOC NEWS

A possible yes merger could create an ILS 1.2 billion tax benefit over 10 years. Bezeq reported NIS 2.03 billion in Q1 core revenue.

Bezeq The Israeli Telecommunication, IL0002300114, Illustration mit AI erstellt.

Bezeq The Israeli Telecommunication stock (ISIN IL0002300114) was trading at ILA 732.20 on the Tel Aviv Stock Exchange on October 8, 2026, at 10:06 a.m. Israel time. A possible merger between Bezeq and its yes television unit is the fresh corporate catalyst, with a reported ILS 1.2 billion tax benefit over 10 years if regulators approve the change.

Merger could reshape the group

As Geektime reported on October 6, 2026, Israel's communications and finance ministries were considering the removal of Bezeq's structural separation rules. The proposal would allow closer operational and commercial integration with yes while preserving conditions for fair access to Bezeq's infrastructure.

The financial case rests on yes's accumulated operating losses, which could be offset against Bezeq profits. The reported ILS 1.2 billion benefit over a decade would add a measurable tax dimension to the regulatory debate, although the report described the merger as a proposal still under review.

Q1 cash flow sets the baseline

In its first-quarter 2026 release dated May 13, 2026, Bezeq reported core revenue of NIS 2.03 billion, up 2.6 percent from Q1 2025. Comparable net profit rose 4.2 percent to NIS 300 million, while free cash flow climbed 74 percent to NIS 455 million.

The cash-flow comparison needs context: Bezeq said the increase was primarily helped by a tax refund and working-capital changes. The same release kept 2026 comparable EBITDA guidance at NIS 3.7 billion to NIS 3.8 billion and comparable net profit guidance at NIS 1.0 billion to NIS 1.1 billion.

Stock stays below yearly high

The Tel Aviv Stock Exchange 52-week range was ILA 625.10 to ILA 913.60 as of October 8, 2026, leaving the stock 19.8 percent below its yearly high; volume stood at 514,034 shares at 10:06 a.m. Israel time. The valuation debate therefore combines a regulatory option with a business already generating NIS 455 million in quarterly free cash flow.