JERUSALEM: Bezeq Israeli Telecom reported a 56% rise in quarterly net profit, boosted by sharp growth in subscribers to its fibre optics network and in 5G customers at its mobile business.

Bezeq, Israel's largest telecoms group, said on Tuesday it earned 482 million shekels ($146 million) excluding one-off items in the third quarter, up from 309 million shekels a year earlier.

It said profit was helped by a higher valuation of its Yes television unit, which together with subscriber growth and expense reduction pushed up adjusted quarterly net profit at Yes to 214 million shekels from 12 million shekels a year ago.

Revenue slipped 4% to 2.15 billion shekels but core revenue, which comprises 93% of the total, rose 2% to 2 billion shekels.

"We are very confident about meeting our guidance or maybe beating our guidance," Chairman Tomer Raved told Reuters. Bezeq expects adjusted net profit of 1.45 billion shekels in 2025.

Bezeq said it had largely completed its fibre optics network to cover 2.9 million - or 90% - of Israel's 3.1 million households.

Raved said capital expenditure should fall to 16% of sales in the next couple of years from 20% now, along with savings in headcount.

"We are talking about 100 to 200 million shekels in savings on Capex next year," he said.

Bezeq's shares slipped 0.5% in Tel Aviv on Tuesday but are up 32% in 2025. Raved said international investors comprised about 25% of shareholders, with foreign demand rising.

He said Bezeq was supporting regional internet developments, helping companies like Google connect cables from Tel Aviv and other cities to Eilat in Israel's south and then to Jordan and Saudi Arabia.

Bezeq said profit at mobile unit Pelephone excluding one-off items fell 10%, without elaborating on reasons for the dip. However, revenue grew 2.2% to 517 million shekels on the heels of a 13% rise in more lucrative 5G subscriptions, it said.

($1 = 3.3045 shekels) (Reporting by Steven Scheer; Editing by Aidan Lewis)