Cell C has announced an update for the financial and operational performance for its full year period June to May 2025, recording a return to net profit and broad-based growth across the business.
The year also delivered growth across key revenue lines and improved operating margins compared with the prior year.
Financial highlights include:
- Total net revenue grew 4%.
- Service revenue increased 6%.
- Wholesale revenue rose 13%.
- Prepaid Broadband revenue jumped 18%.
- EBIT was up 5%, with operating discipline offsetting higher opex; excluding a once-off R218m reversal in the prior year, EBITDA remained broadly in line with the previous period.
- Profit before tax increased by over 200%, driven by topline growth, improved EBIT and reduced finance costs.
Total net revenue grew by 4% year-on-year, climbing to R11,14-billion from R10,75-billion in FY24. This uplift was achieved despite a competitive trading environment, reflecting the resilience of the capex-light model and Cell C’s ability to drive efficiency through partnerships.
Service revenue, the engine of sustainable growth, rose by 6% to R11,97-billion, compared to R11,28-billion in FY24. This result was driven by a healthier revenue mix and ongoing optimisation of the customer base, proving that Cell C is delivering on its promise of stronger, higher-quality earnings.
Prepaid Broadband revenue continued its upward trajectory, increasing by 18% year-on-year. This growth reflects the overall sharp increase in mobile data traffic, up 31% from the prior year, as South Africans increasingly rely more on digital services and streaming. The strategy to bundle and monetise broadband services has delivered not only higher traffic but also deeper customer engagement.
The total customer base remained stable at around 7,6-million, as the company deliberately focused on optimising its subscriber base to attract and retain higher-yield customers. In prepaid, ARPU came in at R78, down slightly from the prior year, but with a strong 20% increase in data traffic. In postpaid, ARPU eased from prior year to R224, however, the telco saw a 23% rise in data traffic.
Cell C’s wholesale division, anchored by MVNO partnerships, delivered another year of double-digit growth. Wholesale revenue rose 13% year-on-year, lifting its share of service revenue from 12% in FY24 to 13% in FY25.
EBITDA was stable at R2,09-billion in FY25 compared to R2,08-billion in FY24. The prior year included a once-off bad debt reduction from strong debtors’ book management. Despite a 16% increase in operating expenses, direct expenditure held steady year-on-year, underscoring disciplined execution and stronger topline performance.
EBIT also improved, rising to R1,58-billion in FY25 from R1,5-billion in FY24, a 5% increase that lifted EBIT margin to 14%. This improvement, combined with a reduction in net finance costs as leases liabilities reduced following the decommissioning of legacy assets, contributed to a profit before tax of R280-million, a swing of more than 200% compared from the prior year’s R9-million.
Cell C’s turnaround is also visible across the customer and brand experience:
- Network quality improved substantially with Cell C being awarded best overall Video Experience in South Africa in the Opensignal Awards: South Africa: Mobile Network Experience Report August 2024. Its first VoLTE call on Africa’s cloud-native via Amazon Web Service, was the first of its kind in Africa, and only second globally.
- Customer experience was re-energised with a new redesigned app and the refurbishment of 50 stores, with more revamps being rolled out.
- The brand relaunch restored market energy, with Cell C remaining resilient and in the Kantar BrandZ Top 30 South African brands.
- Diversification beyond prepaid gathered pace, with enterprise, fibre, digital and wholesale revenues all expanding their share of the mix.
Cell C will maintain transformation momentum into FY26. Priorities include concluding the postpaid operational integration to unlock synergies, accelerate MVNO and wholesale growth, scaling the enterprise and fibre businesses as diversification drivers, and sustaining the financial discipline and execution excellence that have restored profitability.
Cell C CEO Jorge Mendes comments: “This year’s results prove that Cell C is back in profit and with momentum. We have reshaped our business, secured growth in wholesale, broadband and postpaid, and strengthened our brand and customer experience. The combination of topline growth, stronger margins, and disciplined cost management sets us apart in the market. Our transformation is building the right foundations to accelerate growth.”