Cell C more than halves net debt and adds 1.3 million subscribers
Cell C Holdings Limited today announced results for the full year ended 31 May 2026, its first full reporting period following the JSE listing in November 2025.
The Group added approximately 1.3 million subscribers’ year-on-year, grew wholesale service revenue by around 20%, and materially strengthened its balance sheet through the restructuring completed during the period.
Group revenue was R12.641 million and service revenue was R11.641 million.
Reported EBITDA of R5.509 million includes one-off gains arising from the restructuring transaction; excluding those items, adjusted EBITDA was R2.381 million with CEC consolidated by only six months.
The period was defined by three structural achievements
- The November 2025 JSE listing and the balance sheet restructure that followed.
- Independent recognition of network quality, with OpenSignal ranking Cell C joint #1 nationally for network reliability and video experience.
- Completion of the CEC acquisition and integration, restoring full ownership and control of the postpaid base.
Jorge Mendes, Chief Executive Officer said, “The turnaround delivered what it promised.”
“We have built network credibility, rebuilt and grown the customer base, entrenched ourselves as South Africa’s leading wholesale platform, and earned back customer trust.”
“With the CEC integration complete, FY27 is the first full year of a new, simpler Cell C, and our 2030 strategy builds on what the turnaround created.”
Jorge Mendes, CEO at Cell C
Financial performance
- Revenue of R12.641 million, up 14% year-on-year, with service revenue of R11.641 million, up 6%.
- EBITDA of R5.509 million as reported, including one-off gains arising from the restructuring transaction; excluding those items, adjusted EBITDA was R2.381 million.
- Headline earnings per share of 2,338 cents and earnings per share of 2,341 cents, based on 177 million weighted average shares.
- Cash capex of R810 million, with total additions to property, plant and equipment and intangibles of R1.147 billion (including R337 million of right-of-use assets).
- Net debt reduced 64% to R2.020 billion from R5.691 billion, with net debt to EBITDA improving to 1.56 times from 4.29 times.
- Interest-bearing debt of R1.351 billion, or R2.153 billion including lease liabilities, following the balance sheet restructure.
- Second half revenue of R6.961 billion and EBITDA of R1.297 billion (R1.464 million excluding one-off and non-cash items), with second half cash capex of R415 million and second half headline earnings per share of 455 cents.
“The balance sheet reset is now delivering real flexibility and materially lower risk,” said El Kope, Chief Financial Officer.
“Second half performance is more reflective of the underlying business, and our FY27 guidance reflects improving momentum alongside continued capital discipline in an asset-light model.”
Operational and commercial performance
- Approximately 1.3 million subscribers added year-on-year, a 19% increase, taking the customer base to 8.884 million, which excludes 5.713 million MVNO subscribers recorded on the Home Location Register (HLR).
- Wholesale service revenue up approximately 20% to R1.760 billion, with Cell C holding an estimated 80-85% share of the South African MVNO market and 1.2 million MVNO customers on the Home Location Register (HLR) added in the year.
- Net prepaid revenue grew 9.7%, with gross prepaid revenue growth accelerating to double digits year-on-year in the second half as historical airtime discounts normalised.
- Indirect channels delivered 69% growth in gross additions and 101% growth in upgrades; branded stores grew postpaid spend revenue 39% year-on-year.
- Cell C Business launched in January 2026, targeting SME and enterprise segments, and international roaming was extended to 120 global operators.
El Kope, CFO at Cell C
Network and customer experience
- Joint #1 for network reliability and video experience in the OpenSignal national assessment, and the highest network quality net sentiment in the sector (DataEQ).
- Data traffic grew 47% year-on-year, continuing to outpace customer growth, while voice traffic declined 4%.
- Continued to expand 4G and 5G coverage via our MOCN agreements, while accelerating VoLTE adoption as customers migrate off legacy 2G and 3G networks.
- Net Promoter Score improved from 19 to 33 over the year; app users more than doubled and app revenue grew 41% year-on-year, with eSIM sales up materially.
- 44 stores refreshed during the period (79 of 103 to date), and a franchise model introduced to improve service economics.
Brand and reputation
- Employee NPS improved from -3 to +34, and Cell C retained its Level 1 B-BBEE rating.
- Spontaneous brand awareness of 80%, up 3 percentage points year-on-year.
- Reputational Trust score further improved from 72.7 to 81.5, above the sector average across stakeholders’ groups with strong year-on-year gains.
- The highest network-quality net sentiment in the sector (DataEQ).
- Continued investment in digital inclusion, education and youth development initiatives.
Outlook and guidance for FY27
Cell C expects FY27 to be the first full year of a simpler group, shifting from integration to value and margin.
Guidance reflects improving operational momentum and the benefits of recent structural actions:
- Revenue growth in the upper single digit range off adjusted FY26 revenue of R13.599 billion, which restates FY26 to include a full twelve months of CEC.
- Capex of R750 million to R850 million, against cash capex of R810 million in FY26.
Note: adjusted FY26 EBITDA of R2.688 billion restates FY26 to include a full twelve months of CEC, against adjusted EBITDA of R2.381 billion as reported.
The Group’s priorities for the coming period are:
- Drive profitable growth in Prepaid and Postpaid
- Compound and diversify our platform-led growth
- Effective management of regulatory impacts
- Continued financial discipline to unlock shareholder value
“The business is in a much stronger position, and that gives us confidence going into FY27,” said Mendes.
“Our focus on execution will continue, growing the core carefully, scaling the platform, and turning a stronger balance sheet into real value for customers, partners and shareholders.”
“The foundations are in place. Now the work is to build on them, consistently, and create lasting value over time,” Mendes said.
