Cell C has denied any change in strategy, despite its latest results showing a surge in prepaid subscribers and a drop in average revenue per user (ARPU).<\/p>\n\n\n\n
This comes after Cell C said that previous dramatic declines in its subscriber numbers were all part of a plan to focus on high-value customers.<\/p>\n\n\n\n
As recently as August 2025, when it published its results for the year ending 31 May, Cell C said it was deliberately focused on optimising its subscriber base to attract and retain higher-yield customers.<\/p>\n\n\n\n
The company now appears to have changed course, spending aggressively on marketing and adding over a million subscribers in the six months since 1 June 2025.<\/p>\n\n\n\n
Cell C\u2019s most recent interim results reveal that these were not high-yield customers, as its prepaid ARPU dove by 8.4% since November 2024, from R78 to R71.<\/p>\n\n\n\n
According to Cell C, the decrease in ARPU was mainly due to a 14% effective reduction in data tariffs.<\/p>\n\n\n\n
The effect on its blended ARPU for its entire subscriber base was even more dramatic, declining from R93 to R84, almost a 9.7% year-on-year decrease.<\/p>\n\n\n\n
This is because it also lost 63,000 contract customers. Once again, Cell C has characterised this as a deliberate clean-up of its subscriber base.<\/p>\n\n\n\n
It showed that its postpaid ARPU rose from R220 to R230 as lower-value customers exited. However, this is only a 4.5% increase in ARPU.<\/p>\n\n\n\n
These figures show an apparent disconnect or change in strategy at Cell C. While simultaneously \u201ccleaning up\u201d its postpaid base, it was also aggressively onboarding low-value prepaid customers at great cost.<\/p>\n\n\n\n
Queried about this, Cell C maintained that there had been no change to its strategy. \u201cCustomer value remains at the centre of how we grow. Recent performance reflects this approach,\u201d it said.<\/p>\n\n\n\n
\u201cNetwork improvements and value\u2011led offers have brought more prepaid customers onto the platform, increasing volumes but temporarily softening ARPU as new users typically enter at lower spend levels.\u201d<\/p>\n\n\n\n
At the same time, Cell C said the increase in postpaid ARPU following a clean\u2011up of the subscriber base that removed inactive and low\u2011value customers was the approach it has consistently communicated.<\/p>\n\n\n\nCell C financials<\/th> 1H26<\/th> 1H25<\/th> YoY %<\/th><\/tr><\/thead> Prepaid segment<\/em><\/strong><\/td><\/tr> Revenue<\/strong><\/td> R2.74 billion<\/td> R2.69 billion<\/td> +1.6%<\/td><\/tr> Subscribers<\/strong><\/td> 7,830,600<\/td> 6,915,200<\/td> +13.2%<\/td><\/tr> ARPU<\/strong><\/td> R71<\/td> R78<\/td> -8.4%<\/td><\/tr> Postpaid segment<\/em><\/strong><\/td><\/tr> Revenue<\/strong><\/td> R1.16 billion<\/td> R1.14 billion<\/td> +2.3%<\/td><\/tr> Subscribers<\/strong><\/td> 784,600<\/td> 847,900<\/td> -7.5%<\/td><\/tr> ARPU<\/strong><\/td> R230<\/td> R220<\/td> +4.4%<\/td><\/tr> Total<\/em><\/strong><\/td><\/tr> Revenue<\/strong><\/td> R5.68 billion<\/td> R5.58 billion<\/td> +1.8%<\/td><\/tr> Subscribers (direct)<\/strong><\/td> 8,615,200<\/td> 7,763,100<\/td> +11%<\/td><\/tr> Subscribers (wholesale HLR)<\/strong><\/td> 5,106,000<\/td> 3,939,000<\/td> +29.6%<\/td><\/tr> ARPU (blended)<\/strong><\/td> R84<\/td> R93<\/td> -9.7%<\/td><\/tr><\/tbody><\/table><\/div><\/figure>\n\n\n\n Cell C has reached a turning point, says CEO<\/h2>\n\n\n\n