Cell C strengthens turnaround as subscriber base grows and debt drops

The South African mobile operator increased its customer base by 19% to 8.884 million, while net debt declined sharply to R2.02 billion from R5.69 billion a year earlier. The results mark another step in Cell C's efforts to strengthen its financial position and rebuild its position in the highly competitive telecommunications market.

Stronger wholesale business Wholesale operations were a major contributor to the company's growth. Revenue from wholesale services rose by about 20% to R1.76 billion.Cell C also expanded its presence in the mobile virtual network operator (MVNO) market. The company estimates that it accounts for between 80% and 85% of South Africa's MVNO sector and added approximately 1.2 million MVNO customers to its Home Location Register during the year.

Revenue growth and improved earnings Group revenue climbed 14% to R12.64 billion, while service revenue increased 6% to R11.64 billion. Reported EBITDA reached R5.51 billion, although the figure was boosted by once-off benefits associated with the company's restructuring. On an adjusted basis, EBITDA stood at R2.38 billion, with CEC contributing to the consolidated results for only six months.

Headline earnings per share also improved, increasing to R23.38 from R14.85 in the previous financial year. Cash capital expenditure totalled R810 million.

Network performance gains Cell C also highlighted improvements in network quality and customer satisfaction. Data traffic grew 47% compared with the previous year, while the company's Net Promoter Score improved from 19 to 33.

External network assessments provided further support for the company's progress. OpenSignal placed Cell C joint first nationally for network reliability and video experience, while Cell C said research from DataEQ showed it achieved the strongest network-quality sentiment in the sector.

CEC integration sets up FY27 During the year, Cell C completed the acquisition and integration of CEC, creating a simpler group structure. The 2027 financial year will therefore be the first full reporting period to reflect the combined business.

Management expects revenue to grow in the upper-single-digit range during FY27, using adjusted FY26 revenue of R13.60 billion as the baseline. Planned capital expenditure is expected to remain between R750 million and R850 million.

CEO Jorge Mendes said the company's restructuring had helped reduce financial risk while restoring confidence in its network, expanding its customer base and strengthening its wholesale business.

The latest results suggest that Cell C's turnaround is moving beyond balance-sheet repair, with customer growth, network improvements and wholesale expansion increasingly becoming central to its next phase of growth.