Cell C data traffic surges despite flat earnings in first listed period

Cell C Holdings posted marginally lower headline earnings in its first results of being listed on the JSE, at 20 584 cents per share for the six months to November 30, versus 20 652 cents a year before.Cell C Sees Data Traffic Surge Despite Flat Earnings in First Listed Period

"The first half of the 2026 financial year was a defining period for Cell C. We have emerged as a listed entity with a differentiated, capital-light business model built for sustainable, long-term value creation. Delivering our first interim results as a listed company marks the completion of our restructuring and the start of a new chapter," the Group CEO Jorge Mendes said in a statement.

The company that has 8.6 million subscribers with a further 5.1 million Mobile Virtual Network Operator (MVNO) Home Location Register subscribers, increased revenue by 1.8% to R5.68bn year-on-year, with service revenue of R5.62bn.

Adjusted earnings before interest tax depreciation and amortisation (EBITDA) was 1.1% lower at R917 million. Data traffic was up 42.7% for the period highlighting data as the primary growth driver. Voice traffic fell with the decline contained to 1.8%.

"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 platform scales," said Mendes.

He said their platform strategy was central to their growth. Expanding beyond traditional connectivity into Wholesale, MVNOs and adjacent opportunities was building diversified, scalable revenue streams.

"At the same time, stronger network performance and an enhanced customer experience are accelerating momentum across segments," he said.

A pre-IPO restructuring had reduced risk, enhanced flexibility and enabled the group to execute confidently as a listed entity. The group ended the period with only trading-level debt, significantly enhancing financial flexibility and positioning it with greater resilience and strategic optionality.

The Prepaid business reported revenue of about R2.7bn. Net revenue increased by 1.6%, driven by unwinding historically high airtime discounts. Prepaid subscribers grew by over one million, a recovery from the more challenging prior comparative period.

Postpaid revenue increased by 2.3% to R1.2bn. An improved trajectory was expected in the future with the integration of the CEC business, and the complete ownership of the Postpaid business. Postpaid subscribers fell by 63 000, reflecting a deliberate clean-up of the base, with average revenue per user at R230, up from R220, as lower-value customers exited.

Wholesale revenue increased by 22.5%, after sustained momentum in MVNO business.

"Supporting MVNO and Wholesale partners remains a key long-term growth lever, enabling us to scale through partner ecosystems while stimulating greater competition and customer choice in the South African market," said Mendes.

Other revenue streams, including roaming, incoming revenue, digital services, fibre and enterprise, declined during the period, primarily due to the regulated reduction in mobile termination rates.

"Our outlook reflects improving operational momentum and the benefits of recent structural actions," said Mendes.

Prepaid revenues are expected to accelerate from network perceptions and value-led propositions. Postpaid revenues were expected to continue improving. Wholesale performance was expected to remain strong. "Other revenues" were expected to remain under pressure due to the mobile termination rate glide path, partially offset by continued double-digit growth in Enterprise services.

"Our focus in the coming six-month period will be on completing the CEC integration, strengthening customer journeys to enable profitable growth, deepening MVNO and Wholesale partnerships, scaling Enterprise, sharpening channel effectiveness and navigating regulatory and industry developments," said Mendes.

During the six-month period, 37 Cell C stores were upgraded, bringing the total number of upgraded stores to 72 out of 104. The programme is ongoing.

The share increased by 0.77% to R30 on Friday afternoon, a price that was 9% up from the R27.50 that the company listed at last November.

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