Cell C Achieves Profitability, Driven by Growth in Key Segments
South African mobile network operator, Cell C, has announced a significant financial turnaround, reporting a return to profitability for the fiscal year ending May 2025. This positive result coincides with robust growth across its various business segments, signaling the effectiveness of the company’s strategic transformation and bolstering its prospects for future expansion within the competitive African telecommunications market.
Strong Financial and Operational Performance
Cell C’s financial results demonstrate a clear trajectory of recovery and expansion. Total net revenue experienced a notable 4% increase, reaching R11.14 billion. This growth was fueled by positive performance in key areas. Service revenue increased by 6%, culminating at R11.97 billion. Cell C’s dominance in the Mobile Virtual Network Operator (MVNO) market was further solidified by a 13% surge in wholesale revenue. The company’s prepaid broadband offerings emerged as a high-growth area, with an impressive 18% year-on-year expansion, directly correlating with a substantial 31% increase in mobile data traffic. Additionally, operating discipline played a critical role in improving profitability. Earnings Before Interest and Taxes (EBIT) improved by 5%, reaching R1.58 billion, pushing margins to 14%. Earnings Before Interest, Taxes, Depreciation, and Amortization (EBITDA) remained stable at R2.09 billion, with stronger revenue growth offsetting increased operational costs. The most significant achievement was the rise in profit before tax, which climbed to R280 million, representing a substantial increase of over 200% compared to the previous year’s result.
In conclusion, Cell C’s latest financial report signifies a successful turnaround story, driven by strategic execution and growth in key areas. The company’s return to profitability and strong revenue gains position it favorably for continued competition and expansion in the dynamic African mobile market.
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