The company on Tuesday forecast 2013 net profit of between NIS 1.7 billion ($460 million) and NIS 1.8 billion ($490 million).
Analysts' consensus forecast for 2013 net profit was NIS 1.55 billion ($420 million), according to Thomson Reuters I/B/E/S.
Bezeq said it expects free cash flow to exceed NIS 2.7 billion ($730 million) in 2013, against the NIS 2.5 billion ($680 million) it forecast for 2012.
Fourth-quarter results are expected in March, providing an indication of how Bezeq is adapting to the growing competition in Israel's telecoms industry.
The company's net profit fell 38% in the third quarter as its mobile phone unit suffered amid a price war sparked by the entry of six new operators. It also faces increased competition in the landline market, in which it was once a monopoly.
Bezeq said that streamlining processes are expected to continue in 2013 and it intends to speed deployment of optical lines to customer premises and residential buildings.
The company also reiterated its outlook for 2012, with net profit expected to come in at between NIS 1.75 billion ($480 million) and 1.85 billion ($500 million).