Mobile telecommunications firm Cell C has reported a modest 1.65% year-on-year increase in revenue for the six months ended November 2025, accounting for R5.68-billion.
This increase was boosted by its prepaid segment and the impact of airtime discounts aimed at attracting and retaining customers.
Prepaid subscriptions increased by more than 1 million. In the interim report, Cell C revealed having 8.6 million subscribers with an additional Mobile Virtual Network Operator (MVNO) Home Location Register (HLR) at 5.1 million subscribers.
The mobile network operator indicated that the improvement comes after a more difficult comparative period and signals early signs of recovery in the group’s core consumer market.
Major turning point
Cell C CEO Jorge Mendes said the first half of the 2026 financial year was a major turning point for the company. He explained that Cell C has now become a listed business with a different, capital-light model designed to support sustainable, long-term growth.
He added that releasing its first interim results as a listed company shows the restructuring process is complete. And that it signals the beginning of a new phase for the business.
“Against a highly competitive market, we delivered a R5.68-billion in revenue and R917-million in adjusted EBITDA (earnings before interest, taxes, depreciation, and amortisation). And we deleveraged our balance sheet, achieving a 0.6x net debt ratio.
“Revenue continues to improve, prepaid is returning to growth. The Comm Equipment Company (CEC) integration is set to lift earnings, and wholesale continues to outperform as our MVNO (Mobile Virtual Network Operator) platform scales,” said Mendes.
He said the company’s platform strategy is driving growth by expanding into new revenue areas. While better network performance and customer experience are boosting momentum.
Reducing risk paid off
He added that a stronger balance sheet after the pre-IPO restructuring has reduced risk. And it positioned the business to operate confidently as a listed company.
Cell C’s mother company, Blue Label Telecoms, had revealed in their statement for the same period released last year that they would be servicing Cell C debt through their subsidiary, The Prepaid Company (TPC).
According to the Blue Label Telecomms financial statement last year, the recapitalisation of Cell C in September 2022 led to additional finance costs of R37-million.
These included costs from higher borrowings linked to airtime sale and repurchase obligations. R15-million was related to the issue of Class A Preference Shares, and R72-million in finance charges was recognised from the sale of CEC’s handset receivable books.
Various sources boosted profits
“Finance income increased by R90-million, from R352-million to R442-million. Of the latter amount, R15-million was attributable to interest received on cash resources, R42-million to the loan provided to Cell C relating to the CEC R1.1-billion deferral amount, R351-million from the loan extended to Cell C as a component of the debt funding required as part of the recapitalisation transaction, R28-million from interest accrued on the overdue trade receivable balance owed to CEC by Cell C and R6-million from other loans advanced.
“In the prior period, R16-million was attributable to interest received on cash resources, R54-million to the loan provided to Cell C relating to the CEC R1.1-billion deferral amount, R273-million from the loan extended to Cell C as a component of the debt-funding required as part of the recapitalisation transaction and R9 million from other loans granted,” reads the statement.
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