{"id":839135,"date":"2025-10-06T13:30:00","date_gmt":"2025-10-06T11:30:00","guid":{"rendered":"https:\/\/businesstech.co.za\/news\/?p=839135"},"modified":"2025-10-06T13:32:29","modified_gmt":"2025-10-06T11:32:29","slug":"cell-cs-big-plans-for-south-africa","status":"publish","type":"post","link":"https:\/\/businesstech.co.za\/news\/telecommunications\/839135\/cell-cs-big-plans-for-south-africa\/","title":{"rendered":"Cell C’s big plans for South Africa"},"content":{"rendered":"\n

Cell C has provided a financial outlook for the near-to medium-term, as the mobile operator is set to be listed on the JSE. <\/p>\n\n\n\n

Cell C\u2019s majority owner, Blu Label, plans to list Cell C on the JSE and has entered into a binding implementation agreement relating to the restructuring of Cell C’s pre-listing. <\/p>\n\n\n\n

Following a period of troubled ownership, Blu Label said that the listing will help show the strengths of both entities, with investors now able to own a direct stake in Cell C. <\/p>\n\n\n\n

Blu Label added that the restructuring will ensure the Cell C management team has the appropriate incentive structure per the listing preparation. <\/p>\n\n\n\n

It believes the Cell C listing will enhance its value and restore its shareholder value. <\/p>\n\n\n\n

Cell C\u2019s independent access to capital markets may support further growth and finance acquisitions or investments.<\/p>\n\n\n\n

The group is also undergoing a massive change and has adopted a capital-light structure, which runs off MTN\u2019s network. <\/p>\n\n\n\n

Cell C is then a service provider for several other major MVNOs, including Capitec Connect, which now has over 1 million users. <\/p>\n\n\n\n

The net asset value of Cell C is R8.3 billion as of 31 May 2025, with its operating profits attributable to Cell C standing at R1.6 billion. <\/p>\n\n\n\n

Even so, the group\u2019s latest financials showed it was technically insolvent, with negative equity of R1 billion. <\/p>\n\n\n\n

However, with a potential listing on the cards, Cell C has summarised its financial outlook. It also provided a  new capital structure that is aligned to support its business model:<\/p>\n\n\n\n

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Net revenue growth\u00a0<\/h2>\n\n\n
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The first part of the update included the group\u2019s plan to increase net revenue growth. <\/p>\n\n\n\n

This includes increased subscriber growth across its mobile business. <\/p>\n\n\n\n

The group is also loooking for an improved average revenue per user (ARPU), driven by a high-avlue customer model across its prepaid and postpaid customers. <\/p>\n\n\n\n

It is also looking for growth in wholesale revenue through MVNO customers and enterprise opportunities. <\/p>\n\n\n\n