Start of a new chapter for Cell C in South Africa

Cell C has released its first interim results since listing on the JSE as a separate entity, marking the completion of its restructuring and the start of a new chapter for the telecoms challenger.

Cell C CEO Jorge Mendes said the company is now positioned for sustainable growth, driven by a focused strategy and “asset-light model”.

The company released its unaudited financial results for the six months through November 2025, marking the first half of its 2026 financial year, on Friday, 13 February.

These results showed that the telecommunications company benefited immensely from a debt-to-equity conversion that formed part of its pre-listing restructuring.

Its former parent company, Blu Label, initiated this restructuring to strengthen Cell C’s balance sheet and simplify its capital structure prior to listing on the JSE in November 2025.

Following the completion of the pre-listing restructuring transactions, Cell C Holdings was established as the new parent company of Cell C Limited.

“Cell C Holdings is simply a continuation of Cell C Limited, albeit with a different number of shares in issue,” the company explained in its results.

As part of this restructuring, Blu Label subsidiary The Prepaid Company (TPC) sold a 30% shareholding in Cell C Limited, and the pre-listing fair value of Cell C Limited’s equity was determined to be R9 billion.

The restructuring also saw the R4.1 billion debt owed to TPC, including debt purchased by TPC from Gramercy and Nedbank, be waived.

The remaining amount owing of R500,000 was converted into Cell C Limited’s shares with an aggregate fair value of R470,000 based on the pre-listing fair value of R9 billion. 

Therefore, the net gain on the debt waived was R3.53 billion, which was recognised as “other income” in Cell C’s latest interim results.

This additional income significantly boosted the company’s latest results, allowing it to recognise an interim profit of R3.36 billion, compared to an interim loss of R93.59 million in the first half of its 2025 financial year.

This is a major turnaround, considering the telecommunications company’s revenue increased by a far more modest 1.8% to R5.68 billion. In contrast, Cell C’s other income shot up by 3,659.54% to R4.30 billion.

This boost also saw Cell C’s basic earnings per share jump from a loss per share of 6.270 cents per share to earnings of 20,652 cents per share.

The benefit provided by Cell C’s restructuring can clearly be seen when comparing the company’s EBITDA figures.

Cell C’s reported EBITDA was R4.21 billion, marking a 442.5% year-on-year increase. In contrast, its adjusted EBITDA, which strips out once-off gains and restructuring-related items, was R917.4 million, a 1.1% decrease year-on-year.

However, the telecoms company has achieved a far cleaner balance sheet compared to its pre-listing structure. Cell C’s net debt was down to R2.4 billion, and its balance sheet was deleveraged to achieve a 0.6x net debt ratio.

“Our operational progress is underpinned by a materially stronger balance sheet,” Mendes said. 

“The completed pre‑initial public offering restructuring has reduced risk, enhanced flexibility and enabled us to execute confidently as a listed entity.”

“Cell C is now a more resilient, focused and growth‑ready business, positioned to deliver sustainable value for the long‑term.”