CELL C HOLDINGS LIMITED - Audited financial results for the year ended 31 May 2026
What this filing means
Cell C reports HEPS of 2 338 cents — up 57.4% — alongside a halving of net debt to R2.0 billion from R5.7 billion post-IPO, with the audited AFS carrying a clean unmodified opinion. The operating momentum is real (adjusted EBITDA up 16.9%, wholesale revenue up 20%, data traffic up 47%), and the balance sheet reset is genuine — but FY27 guidance for upper single-digit revenue growth marks a deceleration from FY26's 13.5%, and the R3.1 billion gap between IFRS and adjusted EBITDA warrants scrutiny on underlying earnings quality.
Cell C just reported its first full year of results after restructuring and listing, and the numbers are materially better than the market expected — profit up sharply, debt cut by more than half, and a clean audit opinion. The business is genuinely growing in its key segments (wholesale, data). The caveat is that the company guides slower growth next year and still pays no dividend, so the recovery is real but not yet a mature yield story.
Bull case
- Revenue rose 13.5% YoY to R12 641.3m, with service revenue up 5.6% to R11 641.4m.
- Adjusted EBITDA grew 16.9% YoY to R2 381.0m, outpacing revenue and signalling margin expansion.
- HEPS jumped 57.4% to 2 337.6 cents from 1 485.1 cents, reflecting strong post-restructuring earnings power.
- Wholesale revenue grew 20% YoY on sustained MVNO momentum, reinforcing the asset-light, partnership-led model.
- Data traffic rose 47% YoY, identified as the primary growth driver of the period.
Bear case
- IFRS EBITDA R5 509m vs Adjusted EBITDA R2 381m — a R3 128m gap driven by large non-recurring items inflates reported profitability and masks underlying earnings quality.
- FY27 guidance of upper single digit revenue growth marks a sharp deceleration from FY26's 13.5% actual, signalling fading top-line momentum into the next year.
- Regulatory headwinds — data rollover regulation (Jan 2027) on top of the ongoing termination rate glide path — cap monetisation across the Other revenue segment in FY27.
- No dividend declared despite a 64.5% net debt reduction; balance sheet repair has not yet unlocked any shareholder return.
- Forward-looking FY27 guidance is unaudited and unreviewed by the external auditor, so the deceleration thesis carries no independent assurance at this stage.
AI-generated summary by SENS-AI, based on the original JSE SENS filing.
SENS-AI conclusion
A real beat against a depressed post-restructuring setup: HEPS +57.4%, adjusted EBITDA +16.9%, net debt halved to R2.0 billion, and a clean unmodified audit opinion — these are material scoreable facts. CAR-20 was flat at -1.0%, so the market had not run up into this print, making the numbers genuinely new information rather than confirmation. The FY27 guidance for upper single-digit revenue growth (down from 13.5% actual) and the R3.1 billion IFRS-to-adjusted EBITDA gap are the two legitimate cautions: one signals a growth deceleration the market must navigate, and the other means underlying earnings quality requires more scrutiny than the headline IFRS profit implies. So what: the restructuring story is playing out operationally and on the balance sheet, but the market still needs to see whether the FY27 growth guidance is achievable against the regulatory headwinds from data rollover rules and the termination rate glide path. Missing evidence: No prior-year operating cash flow figure for comparison; No detailed bridge between IFRS EBITDA R5,509m and Adjusted EBITDA R2,381m — material unexplained delta; No segment-level profitability or margin disclosure; No FY27 EBITDA or HEPS guidance — only revenue growth direction; No disclosure of average revenue per user or churn metrics by segment; 189-day-old guidance beyond live window; no fresh quantitative guidance set
FY27 results are where the market will test whether upper single-digit revenue growth is achievable against the combined headwinds of data rollover regulation and the termination rate glide path.
Evidence from the filing
Revenue rose 13.5% YoY to R12 641.3m, with service revenue up 5.6% to R11 641.4m.
“Revenue 12 641.3 13.5% 11 138.2”
Adjusted EBITDA grew 16.9% YoY to R2 381.0m, outpacing revenue and signalling margin expansion.
“Adjusted EBITDA 2 381.0 16.9% 2 037.3”
HEPS jumped 57.4% to 2 337.6 cents from 1 485.1 cents, reflecting strong post-restructuring earnings power.
“Headline earnings per share (cents) 2 337.6 57.4% 1 485.1”
Wholesale revenue grew 20% YoY on sustained MVNO momentum, reinforcing the asset-light, partnership-led model.
“Wholesale continued to deliver strong growth, with revenue increasing by 20% year on year”
Data traffic rose 47% YoY, identified as the primary growth driver of the period.
“Data traffic up 47% YoY highlighting data as the primary growth driver”
FY27 guidance of upper single digit revenue growth marks a sharp deceleration from FY26's 13.5% actual, signalling fading top-line momentum into the next year.
“notwithstanding the regulatory headwinds from both the data rollover regulations and the termination rate glide path, we expect full year revenue growth in the upper single digit range”
Regulatory headwinds — data rollover regulation (Jan 2027) on top of the ongoing termination rate glide path — cap monetisation across the Other revenue segment in FY27.
“revenue growth in the second half of the year will be affected by the implementation of the data rollover regulation in January 2027”
No dividend declared despite a 64.5% net debt reduction; balance sheet repair has not yet unlocked any shareholder return.
“the Board did not approve any dividend for the year ended 31 May 2026”
Forward-looking FY27 guidance is unaudited and unreviewed by the external auditor, so the deceleration thesis carries no independent assurance at this stage.
“This results announcement is the responsibility of the directors. Any forecast financial information contained herein has not been reviewed or reported on by the Group's external auditor.”
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