South Africa’s Cell C finds growth beyond its own subscribers
The growth marks a change in Cell C’s business beyond selling mobile services directly to consumers. The company uses its network to support other brands that want to offer mobile services without building their own infrastructure, making wholesale and MVNOs an important part of its growth strategy.
South Africa's third-largest mobile operator, Cell C, is discovering growth opportunities beyond its own subscriber base. The latest financial results, announced on Friday, reveal that Cell C's wholesale and Mobile Virtual Network Operator (MVNO) business is a significant growth engine. Wholesale revenue increased by 20% year-on-year, while 5.7 million subscribers were utilizing services provided by other brands on Cell C's network by the end of May 2026.
The company projects double-digit growth to continue in the fiscal year 2027 (FY27). This shift signifies a change in Cell C's business model, moving beyond direct consumer sales to support businesses seeking mobile services without constructing their own infrastructure. Cell C provides the necessary connectivity and infrastructure, while partner companies market mobile services to their customers.
The wholesale business generated R1.8 billion ($111.8 million) in revenue in FY26 and accounted for 80% to 85% of South Africa's MVNO market. As of the end of FY26, Cell C had 8.9 million direct subscribers, up 17.1% year-on-year, alongside the 5.7 million MVNO subscribers leveraging its platform. Total revenue for the year reached R12.64 billion ($785.2 million), a 13.5% increase, while adjusted EBITDA expanded by 16.9% to R2.4 billion ($147.8 million).
Group CEO Jorge Mendes emphasized that Cell C has transitioned from recovery to growth following its restructuring and listing on the Johannesburg Stock Exchange (JSE) in November 2025. He highlighted that the wholesale business remains a standout performer and that the MVNO business demonstrates the strength and scalability of Cell C's partnership-led strategy.
The number of MVNO subscribers on Cell C's network surged by 27.3% to 5.7 million, an increase from 4.5 million in the previous year. Consumer businesses also showed growth, with prepaid revenue up by 9.7% to approximately R5.8 billion ($360.2 million) and postpaid service revenue growing by 1.2% to R2.3 billion ($142.9 million).
Data traffic increased by 47% year-on-year, while voice traffic declined by 4%. Mendes noted that wholesale is crucial to the company's growth plans, projecting double-digit revenue growth supported by the thriving MVNO business. Looking ahead to FY27, Cell C anticipates overall revenue growth in the upper-single-digit range but cautioned about potential challenges stemming from data rollover regulations set to commence in January 2027 and reduced mobile termination rates, which may impact certain revenue streams.
Additionally, the acquisition of Comm Equipment Company (CEC) in August 2025 is expected to enhance postpaid business performance.
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