Cell C announced that it has achieved profitability for the financial year ending May 31, 2025, marking a significant turnaround in its financial performance. The news was revealed in the annual results released by its owner, Blue Label Telecoms. While the mobile operator reported a net profit after tax of R2.2 billion, it remains technically insolvent.
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Cell C stated that its improved performance is a direct result of its ongoing transformation strategy, which focuses on a “capex-light” model and strategic partnerships. The company highlighted several key growth metrics for the 2024/25 financial year:
- Net revenue grew by 4% to R11.14 billion.
- Service revenue, a key indicator of sustainable growth, increased by 6% to R11.97 billion.
- Wholesale revenue surged by 13%, driven by its mobile virtual network operator (MVNO) partnerships.
- Prepaid broadband revenue was a standout performer, growing by 18% year-on-year.
- Profit before tax increased by over 200% to R264 million, a substantial improvement from the previous year’s loss.
Cell C noted that its strategy is focused on attracting and retaining higher-yield customers, which has led to a stable customer base of around 7.6 million. Although the average revenue per user (ARPU) slightly decreased, the company saw a significant 31% increase in mobile data traffic across its network, reflecting the growing demand for digital services in South Africa.
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Looking ahead, Cell C’s CEO, Jorge Mendes, said the company’s priorities for the 2025/26 financial year include finalizing the operational integration of its postpaid customers and accelerating the growth of its MVNO and wholesale businesses.
“This year’s results prove that Cell C is back in profit and with momentum,” Mendes said. “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 top-line growth, stronger margins, and disciplined cost management sets Cell C apart in the highly competitive South African market.
