Back in Black
Cell C says it reached profitability in the year ended 31 May 2025, achieved growth across key revenue lines, and improved operating margins compared with the prior year.
Cell C-owner Blue Label Telecoms released its annual results on Wednesday, 27 August 2025, revealing marked growth in net profit after tax, but also that the mobile operator remains technically insolvent.
The mobile operator issued a statement detailing its financial results, in which it said its performance underscores the progress of Cell C’s transformation strategy.
Cell C highlighted several key financial metrics from the 2025/26 financial year, including:
- Net revenue grew by 4%
- Service revenue grew by 6%
- Wholesale revenue increased by 13%
- Prepaid broadband revenue grew by 18%
- Earnings before interest and tax (EBIT) grew by 5%
- Profit before tax surged by over 200%
Cell C’s net profit before tax grew to R264 million as of 31 May 2025, a substantial improvement from the previous year’s before-tax loss of R22.4 million.
Blue Label also recognised R2 billion in Cell C’s deferred tax, yielding a net profit after tax of R2.2 billion. However, this was offset against the share of its losses that Blue Label did not recognise for five years.
Cell C’s net revenue climbed to R11.14 billion in 2024/25, up from R10.75 billion in the 2023/24 financial year.
“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,” it said.
Cell C said service revenue, the engine of sustainable growth, grew to R11.97 billion in 2024/25 from R11.28 billion in 2023/24.
“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,” it said.
Broadband and MVNO growth
The mobile operator highlighted its prepaid broadband performance as a standout growth story in the 2024/25 financial year, 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,” it said.
“The strategy to unbundle and monetise broadband services has delivered not only higher traffic but also deeper customer engagement.”
Cell C’s customer base remained stable at around 7.6 million during the financial year. It said it deliberately focused on optimising its subscriber base to attract and retain higher-yield customers.
The average revenue per user (ARPU) decreased slightly from the previous year to R78. However, Cell C noted that this was despite a substantial 20% increase in data traffic.
“In postpaid, ARPU eased from the prior year to R224, however, the telco also saw a 23% rise in data traffic,” it said.
Cell C said its wholesale division, which is anchored by mobile virtual network operator (MVNO) partnerships, delivered another year of double-digit growth.
Revenue increased by 13% year-on-year, lifting its share of service revenue from 12% last year to 13% in 2024/25.
“MVNO customers on the Cell C platform grew steadily, reinforcing the company’s leadership in this segment,” it said.
“The wholesale business is a key growth driver, providing predictable and recurring income that complements the consumer business.”
Looking ahead, the mobile operator’s priorities in 2025/26 include concluding the postpaid operational integration, while accelerating MVNO and wholesale growth.
Cell C is taking back control of its postpaid subscriber base through a transaction in which it will acquire Comm Equipment Company from The Prepaid Company (TPC).
TPC is the Blue Label subsidiary that owns the company’s majority stake in Cell C. Comm Equipment Company has been managing Cell C’s contract subscriber base for several years.
In addition to re-integrating its contract customers, Cell C said it would focus on scaling its enterprise and fibre businesses, and sustain the financial discipline that has helped restore profitability.
“This year’s results prove that Cell C is back in profit and with momentum,” said Cell C CEO Jorge Mendes.
“We’ve reshaped our business, secured growth in wholesale, broadband and postpaid, and strengthened our brand and customer experience.”
He added that the combination of topline growth, stronger margins, and disciplined cost management sets it apart in the South African market.
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