Full Breakdown
Cell C Reports Maiden Financial Results as a JSE-Listed Company
2/13/2026, 10:19:47 PM
Financial Performance Overview
Cell C Holdings released its financial results for the six months ending 30 November 2025, marking its first report since listing on the Johannesburg Stock Exchange (JSE) on 27 November. The company reported a revenue of R5.68 billion, reflecting a year-on-year increase of 1.9%. Normalised EBITDA was R917 million, yielding a margin of 16.1%. The results follow a significant restructuring that included a debt-for-equity conversion, which has improved the company's financial stability. Net debt has been reduced to R2.39 billion from R5.69 billion at the end of the previous fiscal year, resulting in a net debt-to-EBITDA ratio of 0.57x.
Key Growth Areas
The wholesale segment emerged as a primary growth driver, with revenue increasing by 22.5% to R840 million, largely due to the success of its mobile virtual network operator (MVNO) platform, which now supports over 5.1 million subscribers. Prepaid revenue saw a modest growth of 1.6% to R2.7 billion, while post-paid revenue increased by 2.3% to R1.2 billion. The overall service revenue rose by 2.1% to R5.6 billion, indicating a recovery in subscriber volumes and a reduction in discounting practices.
Strategic Focus and Future Outlook
CEO Jorge Mendes emphasized the importance of these results as a milestone for Cell C, highlighting the company's commitment to a partner-led model that enhances scalability and reduces capital intensity. Mendes stated, “Supporting MVNO and wholesale partners remains a deliberate strategic priority for Cell C and a key long-term growth lever.” The company aims to enhance customer experience and deepen MVNO partnerships while focusing on enterprise business growth.
Challenges and Criticism
Despite the positive financial indicators, analysts noted that the reported profit of R3.4 billion was significantly influenced by one-off restructuring gains rather than ongoing operational performance. Adjusted EBITDA showed only a marginal decline of 1.1% year-on-year. Additionally, the company faces liquidity constraints, with current liabilities exceeding current assets by R2.3 billion. Critics have pointed out that while Cell C has made strides in restructuring, the operational turnaround remains uncertain.
Conflicting Reports & Gaps
There are discrepancies regarding the impact of regulatory changes on revenue. The reduction in mobile termination rates has led to a reported decline in the "other" revenue category, which fell by 11%. Furthermore, while prepaid subscriber numbers increased, the blended average revenue per user decreased from R93 to R84, raising concerns about pricing pressures in a competitive market.
Verbatim Quotes
- “Commenting on the results, Cell C group CEO Jorge Mendes said: “Delivering our first interim results as a listed company is an important milestone for Cell C.” — Jorge Mendes, CEO
- “Supporting MVNO and wholesale partners remains a deliberate strategic priority for Cell C and a key long-term growth lever, allowing us to scale through partner ecosystems while stimulating greater competition and customer choice in the South African market.” — Jorge Mendes, CEO
As Cell C navigates the competitive landscape of South Africa's telecommunications market, its focus on sustainable growth and financial stability will be critical in the coming months.
