South Africa’s Cell C finds growth beyond its own subscribers

Cell C, South Africa's third-largest mobile operator, reported that its wholesale and Mobile Virtual Network Operator (MVNO) segment grew 20% year on year in FY26, per TechCabal, as the company increasingly earns revenue from businesses that sell mobile services over its network rather than from its own subscribers alone.

Cell C's latest financial results, released Friday, show the wholesale business generated R1.8 billion ($111.8 million) in revenue for the year and accounted for 80% to 85% of South Africa's MVNO market, according to TechCabal. The number of subscribers using MVNO services on Cell C's network rose 27.3% to 5.7 million, up from 4.5 million a year earlier. The company ended FY26 with 8.9 million direct subscribers, up 17.1% year on year, giving it a combined platform of roughly 14.6 million users. Total revenue reached R12.64 billion ($785.2 million), up 13.5%, while adjusted EBITDA increased 16.9% to R2.4 billion ($147.8 million).

The MVNO model lets a company offer mobile services to its own customers without building or operating radio infrastructure. Cell C supplies the underlying connectivity and capacity; partner businesses handle their own branding and customer relationships. Group CEO Jorge Mendes described wholesale as a "standout performer" in the results statement, saying it "continues to validate our platform strategy" and that "sustained momentum in our MVNO business demonstrat[es] the strength and scalability of Cell C's partner-led model," as quoted by TechCabal.

Consumer lines also moved higher. Prepaid revenue rose 9.7% to roughly R5.8 billion ($360.2 million), supported by 1.3 million net new prepaid subscribers during the year. Postpaid service revenue edged up 1.2% to R2.3 billion ($142.9 million), with average revenue per user climbing to R242 ($15.03) from R225 ($13.98) after the company cleaned up its subscriber base. Data traffic jumped 47% year on year, while voice traffic declined 4%.

The results come after a period of significant restructuring. Cell C listed on the Johannesburg Stock Exchange in November 2025, a milestone Mendes cited as marking the company's shift from recovery to growth. Net debt fell sharply, to R2.02 billion ($125.5 million) from R5.7 billion ($353.4 million) a year earlier, per TechCabal. The company also acquired Comm Equipment Company (CEC) in August 2025, a telecoms equipment and services business it expects to improve its postpaid segment following integration.

Looking into FY27, Cell C guided for overall revenue growth in the upper-single-digit range and expects double-digit wholesale revenue growth to continue. However, the company flagged headwinds: data rollover regulations set to take effect in January 2027 and lower mobile termination rates are expected to pressure certain revenue streams, according to TechCabal.