Full Year 2026 Cell C Ltd Earnings Call

August 21, 2026

Speaker #1: Girl, I really like the way you move. Girl, I really like the way you move. Girl, I really like the way you move. Know you wanna party.

Speaker #1: Listen to your body. I want you to get naughty. The fire, keep it burning. We're made for something. Live your life up, or nothing.

Operator: The fire keeps us burning. We're made for something. Live your life or nothing. We are children of the night. The fire keeps us burning. We're made for something. Or nothing. Or nothing. Nothing. Or nothing. So just live your life or nothing. We are children of the night. The fire keeps us burning. We're made for something.

Speaker #1: We are children of the night. The fire—keep it burning. We're made for something. Up or nothing. Up or nothing. Up or nothing. So just live your life—up or nothing.

Speaker #1: We are children of the night. The fire—keep it burning. We're made for something.

[Company Representative] (Cell C): Hi, good morning, everyone, and welcome. Thanks very much for everyone for joining us both today here in person and online. Today's a bit of a milestone for us. It's our first full year results presentation, so we're certainly quite excited about that and very happy to have you here. We're going to walk you through our performance and really set out where we're taking this business. Just before we get started, a couple of quick housekeeping rules. Toilets at the back to my right, and there are Wi-Fi passwords around. You'll see some signs that you can please log on. Just one last little bit of housekeeping. Please keep your phones on silent, and we'll hold questions for the Q&A right at the end, so just make a note of anything you've got. What we're going to cover today with the agenda.

Operator: Hi, good morning, everyone, and welcome. Thanks very much for everyone for joining us both today here in person and online. Today's a bit of a milestone for us. It's our first full year results presentation, so we're certainly quite excited about that and very happy to have you here. We're going to walk you through our performance and really set out where we're taking this business. Just before we get started, a couple of quick housekeeping rules. Toilets at the back to my right, and there are Wi-Fi passwords around. You'll see some signs that you can please log on. Just one last little bit of housekeeping. Please keep your phones on silent, and we'll hold questions for the Q&A right at the end, so just make a note of anything you've got. What we're going to cover today with the agenda.

Speaker #2: Good morning, everyone, and welcome. Thanks very much to everyone for joining us, both here in person and online. Today is a bit of a milestone for us.

Speaker #2: It's our first full-year results presentation, so we're certainly quite excited about that and very happy to have you here. We're going to walk you through our performance and really set out where we're taking this business.

Speaker #2: But just before we get started, a couple of quick housekeeping rules. Toilets are at the back to my right, and there are Wi-Fi passwords around.

Speaker #2: You'll see some signs that you can please log on. Just one last little bit of housekeeping: please keep your phones on silent, and we'll hold questions for the Q&A right at the end, so just make a note of anything you've got.

Speaker #2: What we're going to cover today with the agenda: We'll run through quick highlights—just the headline numbers and the moments that really defined the year.

[Company Representative] (Cell C): We'll run through quick highlights, just the headline numbers and the moments that really defined the year. We'll look at the business updates, where the operations stand, our network, our customers, and some of our commercial engine. Financial performance, the details really behind the results, what you're all waiting for. Then look at the outlook and priorities, what we focus on and how we intend to deliver on that. Then we'll move on to the Q&A. Really, let me just quickly introduce you to the team. Jorge Mendes, our CEO, he will start, and he'll take you through the highlights of the business and update you on the strategic picture. Then we'll hand over to Al, who will take you through the financials, which I'm sure everyone is eager to hear.

El Tshegofatso Kope: We'll run through quick highlights, just the headline numbers and the moments that really defined the year. We'll look at the business updates, where the operations stand, our network, our customers, and some of our commercial engine. Financial performance, the details really behind the results, what you're all waiting for. Then look at the outlook and priorities, what we focus on and how we intend to deliver on that. Then we'll move on to the Q&A. Really, let me just quickly introduce you to the team.

Speaker #2: We'll look at a business update—where the operations stand, our network, our customers, and some of our commercial engine. Financial performance: the details really behind the results, what you're all waiting for.

Speaker #2: And then look at the outlook and priorities, what we focused on, and how we intend to deliver on that. Then we'll move on to the Q&A.

Speaker #2: Really, let me just quickly introduce you to the team. George Mendez, our CEO, will start, and he'll take you through the highlights of the business and update you on the strategic picture.

El Tshegofatso Kope: Jorge Mendes, our CEO, he will start, and he'll take you through the highlights of the business and update you on the strategic picture. Then we'll hand over to Al, who will take you through the financials, which I'm sure everyone is eager to hear. Then Jorge will come back and give the outlook, then we will move on to the Q&A. With that, please join me in welcoming Jorge onto the stage. Thank you.

Speaker #2: And then we'll hand over to Al, who will take you through the financials, which I'm sure everyone is eager to hear. Then George will come back and give the outlook, and we'll move on to the Q&A.

[Company Representative] (Cell C): Then George will come back and give the outlook, then we will move on to the Q&A. With that, please join me in welcoming George onto the stage. Thank you.

Speaker #2: So with that, please join me in welcoming George onto the stage. Thank you.

Speaker #3: Thank you, Nick. Thanks very much, Nick, and good morning to all of you who have joined us here at the Cell C head office in Berkeley.

Jorge Mendes: Thank you, Nick. Thanks very much, Nick. Good morning to all of you who have joined us here at the Cell C head office in Buccleuch. Also to everyone joining online, the media platforms, a very good morning to everybody. It is a great pleasure to present Cell C's first full year results for the financial year ended 31 May 2026. I would like to thank the investment community, our media, the partners, and the broader stakeholders for the continued engagement. I will begin with our highlights for the period, focusing on key messages behind our performance and along with our financial and operational metrics. We will then move into a business update where I will cover performance, the foundation we have built, and how our 2030 strategy takes it forward. Al, our CFO, will take you through the financial performance, providing greater detail behind the numbers to the story.

Speaker #3: And then also to everyone joining online, the media platform, a very good morning to everybody. It’s a great pleasure to present Cell C’s first full-year results for the financial year ended 31 May 2026.

Speaker #3: And I'd like to thank the investment community, our media, the partners, and the broader stakeholders for their continued engagement. I'll begin with our highlights for the period, focusing on the key messages behind our performance.

Speaker #3: And along with our financial and operational metrics, we will then move into a business update where I'll cover performance, the foundation we've built, and how our 2030 strategy takes it forward.

Speaker #3: Al, our CFO, will take you through the financial performance, providing greater detail behind the numbers to the story. I will return to close with our outlook and priorities, setting out where we're focusing execution for the period ahead.

Jorge Mendes: I will return to close with our outlook priorities, setting out where we are focusing execution for the period ahead. We will then open the session for questions. With that, let me start with the highlights. There we go. Prepaid remains a significant contributor to overall performance, and we are seeing a solid, resilient growth in a very fiercely competitive market. This was driven by improved network quality and customer confidence, by more efficient commercial structures that created efficiencies across our distribution, and by an enhanced approach to customer value management that provides true value to our customers. On postpaid, the Comm Equipment Company integration is complete, giving us full ownership and operational control of our postpaid base and positioning us to compete more effectively in the devices and hardware space. This is the start of a journey, and the full benefits will come through as we strengthen operations across the business.

Speaker #3: We'll then open the session for questions. With that, let me start with the highlights. There we go. Prepaid remains a significant contributor to overall performance.

Speaker #3: And we've seen solid, resilient growth in a very fiercely competitive market. This was driven by improved network quality and customer confidence, by more efficient commercial structures that created efficiencies across our distribution, and by an enhanced approach to customer value management that provides true value to our customers.

Speaker #3: On postpaid, the CEC integration is complete, giving us full ownership and operational control of our postpaid base and positioning us to compete more effectively in the devices and hardware space.

Speaker #3: This is the start of a journey, and the full benefits will come through as we strengthen operations across the business. We have already expanded our distribution across both physical and telesales, enhanced digital journeys, and improved our credit vetting and retentions.

Jorge Mendes: This is the start of a journey, and the full benefits will come through as we strengthen operations across the business. We have already expanded our distribution across both physical and telesales, enhanced digital journeys, and improved our credit vetting and retentions. Wholesale continues to be a real engine of growth for us and one of the strongest contributors to our overall performance. Revenue grew strongly year-on-year, anchored by the continued scaling of our MVNO ecosystem. Our positioning as the home of MVNOs is a deliberate strategy that supports innovation, competition, and greater choice for customers. This is our platform strategy in action.

Jorge Mendes: We have already expanded our distribution across both physical and telesales, enhanced digital journeys, and improved our credit vetting and retentions. Wholesale continues to be a real engine of growth for us and one of the strongest contributors to our overall performance. Revenue grew strongly year-on-year, anchored by the continued scaling of our MVNO ecosystem. Our positioning as the home of MVNOs is a deliberate strategy that supports innovation, competition, and greater choice for customers. This is our platform strategy in action. As network quality and customer experience have improved, we are seeing that translate into performance across the business. Over the year, we have achieved leading recognition for network reliability, alongside the highest net sentiment network quality score in the sector. This has been a year of sustained gains, independently verified by external parties, giving customers and investors real confidence in the sustainability of our network strategy.

Speaker #3: Wholesale continues to be a real engine of growth for us, and one of the strongest contributors to our overall performance. Revenue grew strongly year-on-year, anchored by the continued scaling of our MVNO ecosystem.

Speaker #3: Our positioning as the home of MVNOs is a deliberate strategy that supports innovation, competition, and greater choice for customers. This is our platform strategy in action.

Speaker #3: As network quality and customer experience have improved, we're seeing that translate into performance across the business. Over the year, we've achieved leading recognition for network reliability, alongside the highest net sentiment network quality score in the sector.

Jorge Mendes: As network quality and customer experience have improved, we are seeing that translate into performance across the business. Over the year, we have achieved leading recognition for network reliability, alongside the highest net sentiment network quality score in the sector. This has been a year of sustained gains, independently verified by external parties, giving customers and investors real confidence in the sustainability of our network strategy.

Speaker #3: This has been a year of sustained gains, independently verified by external parties, giving customers and investors real confidence in the sustainability of our network strategy.

Speaker #3: Regulation continues to evolve rapidly, and while not every change works in our favor, we've planned and are managing this very well. We welcome regulations that support competition, and we will continue to review our product constructs closely, always embracing what is right for our customers while staying fully compliant and safeguarding our margins.

Jorge Mendes: Regulation continues to evolve rapidly, and while not every change works in our favor, we have planned and are managing this very well. We welcome regulations that support competition, and we will continue to review our product constructs closely, always embracing what is right for our customers while staying fully compliant and safeguarding our margins. The prepaid momentum, the postpaid recovery, the wholesale scale, and the network credibility all sit on a balance sheet that looks fundamentally different today than it did one year ago. Our equity position has swung decisively into positive territory, driven by the conversion of debt to equity as part of the pre-IPO restructuring. With interest-bearing debt now materially reduced, this is now giving us flexibility and reduced risk to fund our growth ambitions. With that framing in place, I will now take you through the results highlights.

Speaker #3: The prepaid momentum, the postpaid recovery, the wholesale scale, and the network credibility all sit on a balance sheet that looks fundamentally different today than it did one year ago.

Speaker #3: Our equity position has swung decisively into positive territory, driven by the conversion of debt to equity as part of the pre-RPO restructuring. With interest-bearing debt now materially reduced, this is giving us flexibility and reduced risk to fund our growth ambitions.

Speaker #3: With that framing in place, I'll now take you through the results highlights. This year was a year of two halves, and the full-year results reflect that, with a successful RPO and the consolidation of the CEC business.

Jorge Mendes: This year was a year of two halves, and the full year results reflect that with the successful IPO and the consolidation of the Comm Equipment Company business. I will briefly touch on some of the headlines. I am going to start with revenue. The group delivered total revenue of ZAR 12.6 billion, with service revenue of ZAR 11.6 billion, reflecting the improving trends in the core prepaid business and continued momentum across data and wholesale-led growth areas. On EBITDA, it is important to provide some context. As we noted at the interim period, with the finalization of the listing and the related pre-IPO transactions, the reported EBITDA includes the once-off benefits and costs associated with these structural actions. As a result, reported EBITDA was ZAR 5.5 billion, while on an adjusted basis, EBITDA was ZAR 2.4 billion, which includes Comm Equipment Company for the six-month period.

Speaker #3: I'll briefly touch on some of the headlines. I'm going to start with revenue. The group delivered total revenue of $12.6 billion, with service revenue of $11.6 billion. This reflects improving trends in the core prepaid business and continued momentum across data and wholesale-led growth areas.

Speaker #3: On EBITDA, it's important to provide some context, as we noted that in the interim period with the finalization of the listing and the related pre-RPO transactions, the reported EBITDA includes the once-off benefits and costs associated with these structural actions.

Speaker #3: As a result, reported EBITDA was $5.5 billion, while on an adjusted basis, EBITDA was $2.4 billion, which includes CEC for the six-month period. These once-off items also drove the earnings performance for the year, which should be viewed in the context of the listing and balance sheet restructuring.

Jorge Mendes: These once-off items also drove the earnings performance for the year, which should be viewed in the context of the listing and balance sheet restructuring. Operational performance was underpinned by continued customer growth, with subscribers now increasing to 8.9 million, excluding more than 5.7 MVNO HLR subscribers. This was complemented by strong demand for data services, with traffic up nearly 47% year-on-year. While voice volumes continued to decline across the industry, our voice traffic decline was contained at 4%, reflecting the resilience of the portfolio. In line with our asset-light strategy, technology investment in the year amounted to ZAR 810 million, focused on strengthening customer experience and enhancing network capability.

Speaker #3: Operational performance was underpinned by continued customer growth, with subscribers now increasing to 8.9 million, excluding more than 5.7 million MVNO HLR subscribers. This was complemented by strong demand for data services, with traffic up nearly 47% year on year.

Speaker #3: While voice volumes continue to decline across the industry, our voice traffic decline was contained at 4%, reflecting the resilience of the portfolio. In line with our asset-light strategy, technology investment in the year amounted to $810 million, focused on strengthening customer experience and enhancing network capability.

Speaker #3: As outlined during the listing process, the group has now completed its balance sheet restructuring, with further progress made in the second half period. Interest-bearing debt stands at $2.15 billion, including lease liabilities of approximately $800 million.

Jorge Mendes: As outlined during the listing process, the group has now completed its balance sheet restructuring, with further progress made in the H2 period, with interest-bearing debt of ZAR 2.15 billion, including lease liabilities of approximately ZAR 800 million. Cash flow generation for the year was ZAR 1.1 billion, reflecting both the operational performance and the business, and the timing of the restructuring related cash flows. I am going to move on to the business updates. This slide sets out how our revenue is composed across the business and the shifts we are seeing as our platform-led model matures. Let me take you through each segment in turn, starting with prepaid. In prepaid, we are seeing solid progress with encouraging growth underpinned by improved network performance, sharper channel execution, and the normalization of historical airtime discounts. In the H2, gross prepaid revenues were up double digits year-on-year.

Speaker #3: Cash flow generation for the year was $1.1 billion, reflecting both the operational performance of the business and the timing of restructuring-related cash flows.

Speaker #3: I'm going to move on to the business updates. This slide sets out how our revenue is composed across the business, and the shifts we're seeing as our platform-led model matures.

Speaker #3: Let me take you through each segment in turn, starting with prepaid. In prepaid, we're seeing solid progress, with encouraging growth underpinned by improved network performance, sharper channel execution, and the normalization of historical ATOM discounts.

Speaker #3: In the second half, gross prepaid revenues were up double digits year on year. On postpaid, performance was broadly stable, with reported growth absorbing the alignment of churn rules to the industry standard during the year.

Jorge Mendes: On postpaid, performance was broadly stable with reported growth, absorbing the alignment of churn rules to the industry standard during the year. With the Comm Equipment Company integration now complete and postpaid revenues consolidated, we see clear upside ahead. We continue to strengthen our propositions, our device portfolio, and our channels with real focus on attracting and retaining high-value customers. Wholesale was our standout, growing 20% year-on-year and compounding at scale. This was driven by the continued expansion of our MVNO ecosystem, where HLR subscribers grew by 1.2 million over the year, complemented by steady performance across other wholesale services such as bulk SMS and international roaming. On the other business line, the numbers primarily reflect the impact of the mobile termination rate glide path. This performance was unexpected and regulatory in nature, and it will remain a headwind in the coming financial year.

Speaker #3: With the CEC integration now complete and postpaid revenues consolidated, we see clear upside ahead. We continue to strengthen our propositions, our device portfolio, and our channels, with real focus on attracting and retaining high-value customers.

Speaker #3: Wholesale was our standout, growing 20% year on year and compounding at scale. This was driven by the continued expansion of our MVNO ecosystem, where HLR subscribers grew by 1.2 million over the year, complemented by steady performance across other wholesale services such as bulk SMS and international roaming.

Speaker #3: On the other business line, the numbers primarily reflect the impact of the mobile termination rate glide path. This performance was expected and regulatory in nature, and it will remain a headwind in the coming financial year.

Speaker #3: With this line sits within this line rather sits enterprise, where we're beginning to build real momentum, gaining early traction across our core connectivity offerings, while also expanding into adjacent services.

Jorge Mendes: Within this line rather sits enterprise, where we are beginning to build real momentum, gaining early traction across our core connectivity offerings while also expanding into adjacent services. I will say more about this and how we are building this out in a moment. I would like to spend a moment on some of the achievements that defined the year. I will cover three here and a further two on the next slide. Firstly, we are now a listed business and restructured business. As mentioned earlier, we successfully listed on the JSE in November, completing a multi-year turnaround. I will not repeat the balance sheet details other than to say that we enter this next phase with a materially lower leverage and the governance and reporting disciplines expected of a listed company. Second, our network credibility is now independently proven.

Speaker #3: I'll say more about this and how we're building this out in a moment. I would like to spend a moment on some of the achievements that define the year.

Speaker #3: I'll cover three here and a further two on the next slide. Firstly, we are now a listed and restructured business. As mentioned earlier, we successfully listed on the JSE in November.

Speaker #3: Completing a multi-year turnaround, and I won't repeat the balance sheet details other than to say that we enter this next phase with materially lower leverage, and with the governance and reporting disciplines expected of a listed company.

Speaker #3: Second, our network credibility is now independently proven. We rank joint number one for network reliability in OpenSignal's national assessment, and we hold the highest network quality net sentiment score in the sector.

Jorge Mendes: We rank joint number one for network reliability in Opensignal's national assessment, and we hold the highest network quality net sentiment score in the sector. Encouragingly, data traffic continued to grow, outpace the customer growth, which tells us customers are using the network with greater confidence. Third, we strengthen our position as South Africa's leading MVNO partner while continuing to grow our consumer customer base and broaden our participation in enterprise markets. On the consumer side, we added 1.3 million subscribers over the year. In wholesale, our MVNO leadership continued to anchor strong growth. We officially launched Cell C Business during the year, and we are already gaining traction across our core connectivity offerings while expanding into adjacent services. We also brought Cell C Business into our newly refurbished stores alongside a growing number of onboarded partners, giving us a stronger route to market.

Speaker #3: Encouragingly, data traffic continued to grow, outpacing customer growth, which tells us customers are using the network with greater confidence. Third, we strengthened our position as South Africa's leading MVNO partner, while continuing to grow our consumer customer base and broaden our participation in enterprise markets.

Speaker #3: On the consumer side, we added 1.3 million subscribers over the year. In wholesale, our MVNO leadership continued to anchor strong growth. We officially launched Cell C Business during the year, and we're already gaining traction across our core connectivity offerings, while expanding into adjacent services.

Speaker #3: We also brought Cell C Business into our newly refurbished stores, alongside a growing number of onboarded partners, giving us a stronger route to market.

Speaker #3: On our customer and digital transformation journey, we saw significant improvements, which are reflected in our record Net Promoter Scores and stronger customer sentiment. At the same time, digital channels continue to gain traction, improving engagement, conversion, and service efficiency.

Jorge Mendes: On our customer and digital transformation journey, we saw significant improvements, which are reflected in our record net promoter scores and stronger customer sentiment. At the same time, digital channels continue to gain traction, improving engagement, conversion, and service efficiency. App users more than doubled year-on-year, and that revenue from the channel increased by north of 40%. Finally, a stronger business is built on trust, brand strength, and engaged workforce. Employee net promoter score improved from -3 to +34. One of the achievements I am personally most proud of. Our brand relevance continued to strengthen, while our TIC trust score, an independent measure of trust across stakeholder groups, reached 81.5, up from 72.7 in the prior year. Together with our continued investment in education, youth development, and digital inclusion, these outcomes reinforce the long-term foundation we are building.

Speaker #3: App users more than doubled year on year, and revenue from the channel increased by more than 40%. And finally, a stronger business is built on trust.

Speaker #3: Brand strength and engaged workforce. Employee Net Promoter Score improved from minus 3 to positive 34—one of the achievements I'm personally most proud of.

Speaker #3: Our brand relevance continued to strengthen, while our thick trust score—an independent measure of trust across stakeholder groups—reached 81.5, up from 72.7 in the prior year.

Speaker #3: Together with our continued investment in education, youth development, and digital inclusion, these outcomes reinforce the long-term foundation we are building. Everything I’ve just walked you through was about what we rebuilt over the past three years.

Jorge Mendes: Everything I have just walked you through was about what we rebuilt over the past three years. Our network credibility, our customer base, our wholesale platform, and the trust in our brand. The turnaround delivered what it promised. Our 2030 strategy builds on what it created. This is where we are going. Our 2030 ambition is to be South Africa's most agile, capital-efficient connectivity platform. It is a differentiated strategy focused on sustainable growth, scalable returns, and long-term value creation. It rests on five pillars working together as a single system. The first two are our commercial engines, growing profitably in our core consumer segments and monetizing our platform beyond core connectivity. This will be done through our wholesale, MVNO, enterprise, and selected adjacencies. The third is scaling through capital-efficient connectivity, our asset-light network of networks model, and of course, this is giving us a diversified access.

Speaker #3: Our network credibility, our customer base, our wholesale platform, and the trust in our brand—the turnaround delivered what it promised. Our 2030 strategy builds on what it created.

Speaker #3: So, this is where we're going. Our 2030 ambition is to be South Africa's most agile, capital-efficient connectivity platform. It is a differentiated strategy focused on sustainable growth, scalable returns, and long-term value creation.

Speaker #3: It rests on five pillars, working together as a single system. The first two are our commercial engines: growing profitably in our core consumer segments, and monetizing our platform beyond core connectivity.

Speaker #3: This will be done through our wholesale, MVNO, enterprise, and selected adjacencies. The third is scaling through capital-efficient connectivity—our asset-light network-of-networks model. And, of course, this is giving us diversified access.

Speaker #3: The fourth: operating with discipline and future-fit efficiency. It’s the operating model that keeps us lean and well-governed as we grow, so that scale strengthens returns.

Jorge Mendes: The fourth, operating with discipline and future-fit efficiency. It is the operating model that keeps us lean and well-governed as we grow so that scale strengthens returns. The fifth, delivering transformative customer experiences. This is how all this is felt by the customers through seamless journeys and simple engagements. Underpinning all these three are three enablers, rather, are people and culture, intelligent automation, and a partner-ready platform. The thread running through all of this is capital efficiency and asset-light scale. We are building a platform that grows returns while keeping the balance sheet light, competing on agility and efficiency. With that, I will now hand over to Elle, who will take you through the financial performance.

Speaker #3: And the fifth, delivering transformative customer experiences. This is how all of this is felt by the customers, through seamless journeys and simple engagements. Underpinning all these are three enablers: our people and culture, intelligent automation, and a partner-ready platform.

Speaker #3: The thread running through all of this is capital efficiency and asset-light scale. We are building a platform that grows returns while keeping the balance sheet light, competing on agility and efficiency.

Speaker #3: With that, I will now hand over to L, who will take you through the financial performance.

Speaker #2: Thank you. Thank you. Good afternoon, good morning, everybody. It's a pleasure to have everybody here, and it's lovely to see you. Thanks, George, and it is great, again, to see everybody.

[Company Representative] (Cell C): Thank you. Good afternoon. Good morning, everybody. It is a pleasure to have everybody here, and it is lovely to see you. Thanks, George, and it is great again to see everybody. George touched on some of the key financial highlights, and I will add more detail and context to the H2 and for the full year. Focusing on the H2 of the year, this period shows a business continuing to execute, delivering increased revenues and subscriber growth, with strong data growth and an improved balance sheet. I will briefly touch on some of these headlines. Starting with revenue, the group delivered a total revenue of almost ZAR 7 billion, with service revenue at almost ZAR 6 billion, reflecting the resilience of the core business and continued momentum across data-led and wholesale-led areas. From an EBITDA perspective, EBITDA reflects the performance of the full group.

El Tshegofatso Kope: Thank you. Good afternoon. Good morning, everybody. It is a pleasure to have everybody here, and it is lovely to see you. Thanks, Jorge, and it is great again to see everybody. Jorge touched on some of the key financial highlights, and I will add more detail and context to the H2 and for the full year. Focusing on the H2 of the year, this period shows a business continuing to execute, delivering increased revenues and subscriber growth, with strong data growth and an improved balance sheet. I will briefly touch on some of these headlines. Starting with revenue, the group delivered a total revenue of almost ZAR 7 billion, with service revenue at almost ZAR 6 billion, reflecting the resilience of the core business and continued momentum across data-led and wholesale-led areas. From an EBITDA perspective, EBITDA reflects the performance of the full group.

Speaker #2: George touched on some of the key financial highlights, and I'll add more detail and context on the second half and for the full year.

Speaker #2: Focusing on the second half of the year, this period shows a business continuing to execute, delivering increased revenues and subscriber growth, with strong data growth and an improved balance sheet.

Speaker #2: I'll briefly touch on some of these headlines. Starting with revenue, the group delivered a total revenue of almost $7 billion, with service revenue at almost $6 billion, reflecting the resilience of the core business and continued momentum across data-led and wholesale-led areas.

Speaker #2: From an EBITDA perspective, EBITDA reflects the performance of the full group. The second half EBITDA is at $1.3 billion on a reported basis. If you then normalize that for some of the one-off impacts in the quarter and the half, it would then reflect an EBITDA of $1.5 billion.

[Company Representative] (Cell C): The H2 EBITDA is at ZAR 1.3 billion on a reported basis. If you then normalize that for some of the one-off impacts in the quarter and the half, it would then reflect an EBITDA of ZAR 1.5 billion. That is more reflective of our core run rate. We will discuss that in a bit of detail shortly. From an earnings perspective, earnings is based on the as-reported earnings and is then divided by just our average weighted number of shares. Bear in mind, the weighted average number of shares for this half is about 177.7 million shares because of the fact that the year was split into two halves. For operational performance, that was underpinned by continued customer growth, with subscribers increasing to 8.9 million, excluding more than 5.7 million MVNO HLR subscribers. Data growth remains strong, and data traffic was up 22% for the H2 of the year.

El Tshegofatso Kope: The H2 EBITDA is at ZAR 1.3 billion on a reported basis. If you then normalize that for some of the one-off impacts in the quarter and the half, it would then reflect an EBITDA of ZAR 1.5 billion. That is more reflective of our core run rate. We will discuss that in a bit of detail shortly. From an earnings perspective, earnings is based on the as-reported earnings and is then divided by just our average weighted number of shares. Bear in mind, the weighted average number of shares for this half is about 177.7 million shares because of the fact that the year was split into two halves. For operational performance, that was underpinned by continued customer growth, with subscribers increasing to 8.9 million, excluding more than 5.7 million MVNO HLR subscribers. Data growth remains strong, and data traffic was up 22% for the H2 of the year.

Speaker #2: That is more reflective of our core run rate. We'll discuss that in a bit more detail shortly. From an earnings perspective, earnings are based on the as-reported earnings, and are then divided by just our average weighted number of shares.

Speaker #2: Bear in mind, the weighted average number of shares for this half is about 177.7 million shares, because the year was split into two halves.

Speaker #2: For operational performance, that was underpinned by continued customer growth, with subscribers increasing to 8.9 million, excluding more than 5.7 million MVNO HLR subscribers. Data growth remained strong, and data traffic was up 22% for the second half of the year.

Speaker #2: While voice volume continued to decline across the industry, our voice traffic decline was merely 6% year-on-year, reflecting the resilience of our full portfolio.

[Company Representative] (Cell C): While voice volume continued to decline across the industry, our voice traffic decline was merely 6% year-on-year, reflecting the resilience of our full portfolio. In line with our asset-light strategy, technology investment in the H2 of the year has accelerated to ZAR 415 million, focused on strengthening customer experience and enhancing network capability. The group's interest-bearing debt of ZAR 2.15 billion includes the postpaid book of ZAR 1.35 billion. Cash flow generation for the H2 of the year was ZAR 703 million, showing a marked improvement from the ZAR 353 million we reported in the H1, reflecting the improved operational performance of this business. From a prepaid perspective, the segment remains a significant contributor to overall performance and scale. Net prepaid revenue increased 18% year-on-year in the H2, reflecting a combination of continued customer growth, revised inflow propositions, and ongoing trade and channel revitalization.

El Tshegofatso Kope: While voice volume continued to decline across the industry, our voice traffic decline was merely 6% year-on-year, reflecting the resilience of our full portfolio. In line with our asset-light strategy, technology investment in the H2 of the year has accelerated to ZAR 415 million, focused on strengthening customer experience and enhancing network capability. The group's interest-bearing debt of ZAR 2.15 billion includes the postpaid book of ZAR 1.35 billion. Cash flow generation for the H2 of the year was ZAR 703 million, showing a marked improvement from the ZAR 353 million we reported in the H1, reflecting the improved operational performance of this business. From a prepaid perspective, the segment remains a significant contributor to overall performance and scale. Net prepaid revenue increased 18% year-on-year in the H2, reflecting a combination of continued customer growth, revised inflow propositions, and ongoing trade and channel revitalization.

Speaker #2: In line with our asset-light strategy, technology investment in the second six months of the year has accelerated to 415 million, focused on strengthening customer experience and enhancing network capability.

Speaker #2: The group's interest-bearing debt of $2.15 billion includes the postpaid book of $1.35 billion. Cash flow generation for the second half of the year was $703 million, showing a marked improvement from the $353 million we reported in the first half, reflecting the improved operational performance of this business.

Speaker #2: From a prepaid perspective, the segment remained a significant contributor to overall performance and scale. Net prepaid revenue increased 18% year-on-year in the second half, reflecting a combination of continued customer growth, revised inflow propositions, and ongoing trade and channel revitalization.

Speaker #2: From a margin perspective, we have made progress with the normalization of our discounts post-transaction, being more reflective of actual channel economics. Our weighted average prepaid discount for the first half of the year was 10.6%, and this has normalized to approximately 6% in the second half.

[Company Representative] (Cell C): From a margin perspective, we have made progress with the normalization of our discounts post the transaction being more reflective of actual channel economics. Our weighted average prepaid discount for the H1 of the year was 10.6%, and this has normalized to approximately 6% in the H2. For postpaid subscriber numbers have returned to growth after a period of historic decline, reflecting a deliberate action on our part to improve the quality and sustainability of this space. Revenue closed at approximately ZAR 1.16 billion, which is fairly flat versus prior, reflecting the continued evolution in mix and also the mix of handsets and SIM-only backed propositions within the portfolio. We updated the voluntary churn rules for the postpaid base at the end of 26 May to better align to industry, moving from approximately 150 days to the 90 days.

El Tshegofatso Kope: From a margin perspective, we have made progress with the normalization of our discounts post the transaction being more reflective of actual channel economics. Our weighted average prepaid discount for the H1 of the year was 10.6%, and this has normalized to approximately 6% in the H2. For postpaid subscriber numbers have returned to growth after a period of historic decline, reflecting a deliberate action on our part to improve the quality and sustainability of this space. Revenue closed at approximately ZAR 1.16 billion, which is fairly flat versus prior, reflecting the continued evolution in mix and also the mix of handsets and SIM-only backed propositions within the portfolio. We updated the voluntary churn rules for the postpaid base at the end of 26 May to better align to industry, moving from approximately 150 days to the 90 days.

Speaker #2: For postpaid, postpaid subscriber numbers have returned to growth after a period of historic decline, reflecting a deliberate action on our part to improve the quality and sustainability of the segment.

Speaker #2: Revenue closed at approximately $1.16 billion, which is fairly flat versus prior, reflecting the continued evolution in mix, and also the mix of handsets and SIM-only back propositions within the portfolio.

Speaker #2: We updated the voluntary churn rules for the postpaid base at the end of May in ’26 to better align with the industry, moving from approximately 150 days to 90 days.

Speaker #2: Operational performance continued to trend positively, with data traffic growing over 99% for postpaid. The subscriber numbers increased to approximately 802,000, a 2% increase half on half, as we reinvigorate inflow and enhance credit scoring.

[Company Representative] (Cell C): Operational performance continues to trend positively, with data traffic growing over 99% for postpaid. The subscriber numbers increased to approximately 802,000, a 2% increase half-on-half, as we reinvigorate inflow and enhance credit scoring. This has translated into improved unit economics all around, with ARPU increasing from ZAR 230 to approximately ZAR 242. This performance has been supported by continued enhancements to our existing distribution channels and more customer-centric tariff structures in the correct channels. For the wholesale segment, the segment continues to be one of our strongest contributors to growth. Revenue increased to ZAR 920 million in the period, up from ZAR 780 in the prior year, this being an 18% year-on-year growth with continued momentum from the H1 of the year. The performance is anchored by the success of the MVNO business, which remains at the forefront of growth within the segment.

El Tshegofatso Kope: Operational performance continues to trend positively, with data traffic growing over 99% for postpaid. The subscriber numbers increased to approximately 802,000, a 2% increase half-on-half, as we reinvigorate inflow and enhance credit scoring. This has translated into improved unit economics all around, with ARPU increasing from ZAR 230 to approximately ZAR 242. This performance has been supported by continued enhancements to our existing distribution channels and more customer-centric tariff structures in the correct channels. For the wholesale segment, the segment continues to be one of our strongest contributors to growth. Revenue increased to ZAR 920 million in the period, up from ZAR 780 in the prior year, this being an 18% year-on-year growth with continued momentum from the H1 of the year. The performance is anchored by the success of the MVNO business, which remains at the forefront of growth within the segment.

Speaker #2: This has translated into improved unit economics all around, with our pool increasing from R230 to approximately R242. This performance has been supported by continued enhancements to our existing distribution channels, and more customer-centric tariff structures in the correct channels.

Speaker #2: For the wholesale segment, the segment continues to be one of our strongest contributors to growth. Revenue increased to 920 million in the period, up from 780 million in the prior year, this being an 18% year-on-year growth, with continued momentum from the first half of the year.

Speaker #2: The performance is anchored by the success of the MVNO business, which remains at the forefront of growth within the segment. The MVNO home location registered subscribers increased to just over 5.7 million. 607,000 net additions were recorded in the second half of the year alone, underscoring the resilience and pure potential of the segment.

[Company Representative] (Cell C): The MVNO home location register subscribers increased to just over 5.7 million. 607,000 net additions were covered in the H2 of the year alone, underscoring the resilience and pure potential of the segment. Importantly, wholesale growth is not concentrated in a single revenue line. Other wholesale services, including bulk SMS and international roaming, have delivered steady and consistent performance year-on-year, supporting a diversified yet balanced portfolio within that revenue segment. Our asset-light operating model continues to provide a differentiated proposition to wholesale and MVNO partners, allowing us to support scale efficiently while maintaining service quality and network resilience. The other business segment, which includes roaming, interconnect, as well as enterprise and digital services, declined to ZAR 865 million, a reduction of approximately ZAR 106 million versus prior year and ZAR 21 million versus the prior half. This decline is primarily attributable to the regulated reduction in mobile termination rates.

El Tshegofatso Kope: The MVNO home location register subscribers increased to just over 5.7 million. 607,000 net additions were covered in the H2 of the year alone, underscoring the resilience and pure potential of the segment. Importantly, wholesale growth is not concentrated in a single revenue line. Other wholesale services, including bulk SMS and international roaming, have delivered steady and consistent performance year-on-year, supporting a diversified yet balanced portfolio within that revenue segment. Our asset-light operating model continues to provide a differentiated proposition to wholesale and MVNO partners, allowing us to support scale efficiently while maintaining service quality and network resilience. The other business segment, which includes roaming, interconnect, as well as enterprise and digital services, declined to ZAR 865 million, a reduction of approximately ZAR 106 million versus prior year and ZAR 21 million versus the prior half. This decline is primarily attributable to the regulated reduction in mobile termination rates.

Speaker #2: Importantly, wholesale growth is not concentrated in a single revenue line. Other wholesale services, including bulk SMS and international roaming, have delivered steady and consistent performance year-on-year, supporting a diversified yet balanced portfolio within that revenue segment.

Speaker #2: Our asset-light operating model continues to provide a differentiated proposition to wholesale and MVNO partners, allowing us to support scale efficiently while maintaining service quality and network resilience.

Speaker #2: The other business segment, which includes roaming, interconnect, as well as enterprise and digital services, declined to R865 million—a reduction of approximately R106 million versus the prior year, and R21 million versus the prior half.

Speaker #2: This decline is primarily attributable to the regulated reduction in mobile termination rates. The half-on-half movement is due to mobile termination rates being effective for the full six months in the second half of the year, versus five months in the first half.

[Company Representative] (Cell C): The half-on-half movement is due to mobile termination rates being effective for the first full 6 months in the H2 of the year versus 5 months in the H1. As previously communicated, mobile termination rates framework is on a glide path to symmetry, which commenced from 25 July. For Cell C, this resulted in a 4 cents reduction in termination rates from July of 2025, with a further 4 cents reduction effective this 26 July. From July 2026 onwards, there is no remaining asymmetry between us and the larger operators. Within this segment, enterprise continues to gain momentum, albeit from a smaller base. Enterprise remains a strategic growth focus area for us, and we expect this momentum to continue to grow. Overall, with regulatory changes having weighed heavily on this sector in the period and in the year, the traction in enterprise remains encouraging. Looking at equipment revenues.

El Tshegofatso Kope: The half-on-half movement is due to mobile termination rates being effective for the first full 6 months in the H2 of the year versus 5 months in the H1. As previously communicated, mobile termination rates framework is on a glide path to symmetry, which commenced from 25 July. For Cell C, this resulted in a 4 cents reduction in termination rates from July of 2025, with a further 4 cents reduction effective this 26 July. From July 2026 onwards, there is no remaining asymmetry between us and the larger operators. Within this segment, enterprise continues to gain momentum, albeit from a smaller base. Enterprise remains a strategic growth focus area for us, and we expect this momentum to continue to grow. Overall, with regulatory changes having weighed heavily on this sector in the period and in the year, the traction in enterprise remains encouraging. Looking at equipment revenues.

Speaker #2: As previously communicated, the mobile termination rates framework is on a glide path to symmetry, which comes into effect in July 2025. For Cell C, this will result in a 4-cent reduction in termination rates from July 2025, with a further 4-cent reduction effective in July 2026.

Speaker #2: From July 2026 onwards, there's no remaining asymmetry between us and the larger operators. Within this segment, enterprise continues to gain momentum, albeit from a smaller base.

Speaker #2: Enterprise remains a strategic growth focus area for us, and we expect this momentum to continue to grow. Overall, with regulatory changes having weighed heavily on this sector in the period and in the year, the traction in enterprise remains encouraging.

Speaker #2: Looking at equipment revenues, equipment includes both prepaid and postpaid propositions. Our product mix evolution has resulted in a fairly flat half-on-half revenue performance. As part of the operational rigor, we are actively revising the handset and device strategy, optimizing the financing structures, enhancing supplier terms, and reviewing our portfolio mix to better deliver in this segment.

[Company Representative] (Cell C): Equipment includes both prepaid and postpaid propositions. Our product mix evolution has resulted in a fairly flat half-on-half revenue performance. As part of the operational rigor, we are actively revising the handset and device strategy, optimizing the financing structures, enhancing supplier terms, and reviewing our portfolio mix to better deliver in this segment. Now, looking at EBITDA. I would like to unpack EBITDA a little bit more, as the reported numbers are heavily influenced by the one-off structures and transactions that happened in the H1. As a reminder, the H1 reported EBITDA was about ZAR 4.2 billion, including effects from the pre-listing transactions. For the H2, however, we are approximately at ZAR 1.3 billion, and this performance includes both Cell C and Comm Equipment Company, whereas the H1 did not include Comm Equipment Company at all.

El Tshegofatso Kope: Equipment includes both prepaid and postpaid propositions. Our product mix evolution has resulted in a fairly flat half-on-half revenue performance. As part of the operational rigor, we are actively revising the handset and device strategy, optimizing the financing structures, enhancing supplier terms, and reviewing our portfolio mix to better deliver in this segment. Now, looking at EBITDA. I would like to unpack EBITDA a little bit more, as the reported numbers are heavily influenced by the one-off structures and transactions that happened in the H1. As a reminder, the H1 reported EBITDA was about ZAR 4.2 billion, including effects from the pre-listing transactions. For the H2, however, we are approximately at ZAR 1.3 billion, and this performance includes both Cell C and Comm Equipment Company, whereas the H1 did not include Comm Equipment Company at all.

Speaker #2: Now, looking at EBITDA, I'd like to unpack that a little bit more, as the reported numbers are heavily influenced by the one-off structures and transactions that happened in the first half.

Speaker #2: As a reminder, first-half reported EBITDA was about R4.2 billion, including effects from the pre-listing transactions. For the second half, however, we are at approximately R1.3 billion, and this performance includes both Cell C and CEC, whereas the first half did not include CEC at all.

Speaker #2: To understand the true run rate of performance of this business, it's important to separate the one-off items from the underlying operational results. In the second half of the year, you can see that the transaction-related costs and benefits did not repeat. Notably, our discount levels from airtime have normalized, and we are now moving forward with effecting operational changes.

[Company Representative] (Cell C): To understand the true run rate of performance of this business, it is important to separate the one-off items from the underlying operational results. In the H2 of the year, you can see that the transaction-related costs and benefits did not repeat. Notably, our discount levels from airtime have normalized, and we are now moving forward with effecting operational changes. We have changed our churn rules for postpaid to better align to industry, as I mentioned earlier, and this change resulted in a doubtful debt provision across the business of over ZAR 105 million. The adjustment is a once-off, as this is a reset at a point in time. We also recognize an IFRS 2 adjustment or a share-based payment adjustment for the management structure of ZAR 62 million in the half. This normalization is just to reflect what would be your true cash EBITDA, as this is a non-cash item.

El Tshegofatso Kope: To understand the true run rate of performance of this business, it is important to separate the one-off items from the underlying operational results. In the H2 of the year, you can see that the transaction-related costs and benefits did not repeat. Notably, our discount levels from airtime have normalized, and we are now moving forward with effecting operational changes. We have changed our churn rules for postpaid to better align to industry, as I mentioned earlier, and this change resulted in a doubtful debt provision across the business of over ZAR 105 million.

Speaker #2: We have changed our churn rules for postpaid to better align with industry, as I mentioned earlier, and this change resulted in a doubtful debt provision across the business of over R105 million.

Speaker #2: The adjustment is a once-off, as this is a reset at a point in time. We also recognized an IFRS 2 adjustment, or a share-based payment adjustment, for the management structure of $62 million in the half.

El Tshegofatso Kope: The adjustment is a once-off, as this is a reset at a point in time. We also recognize an IFRS 2 adjustment or a share-based payment adjustment for the management structure of ZAR 62 million in the half. This normalization is just to reflect what would be your true cash EBITDA, as this is a non-cash item. The net impact then of these two adjustments would be ZAR 167 improvement in your H2 performance. After adjusting for these, the underlying run rate cash EBITDA for the business is about ZAR 1.46 billion, just under ZAR 1.5 billion.

Speaker #2: This normalization is just to reflect what would be your true cash EBITDA, as this is a non-cash item. The net impact, then, of these two adjustments would be a $167 million improvement in your second-half performance.

[Company Representative] (Cell C): The net impact then of these two adjustments would be ZAR 167 improvement in your H2 performance. After adjusting for these, the underlying run rate cash EBITDA for the business is about ZAR 1.46 billion, just under ZAR 1.5 billion. This is a more accurate reflection of the sustainable earnings of the business going forward. To give context on CapEx. For the H1, CapEx was relatively high due mostly to some investments and right-of-use assets. We accelerated technology CapEx in the H2 to approximately ZAR 390 million from the initial H1 of ZAR 329. This increase reflects a continued investment in our customer experience and digital capability, our network enablement, rather than heavy infrastructure building. The right-of-use asset in the H2 of ZAR 59 million reflects mainly the renewal of selected network and store leases.

Speaker #2: After adjusting for these, the underlying run-rate cash EBITDA for the business is about $1.46 billion, just under $1.5 billion. This is a more accurate reflection of the sustainable earnings of the business going forward.

El Tshegofatso Kope: This is a more accurate reflection of the sustainable earnings of the business going forward. To give context on CapEx. For the H1, CapEx was relatively high due mostly to some investments and right-of-use assets. We accelerated technology CapEx in the H2 to approximately ZAR 390 million from the initial H1 of ZAR 329. This increase reflects a continued investment in our customer experience and digital capability, our network enablement, rather than heavy infrastructure building. The right-of-use asset in the H2 of ZAR 59 million reflects mainly the renewal of selected network and store leases.

Speaker #2: To give context on CAPEX: for the first half, CAPEX was relatively high due mostly to some investments and right-of-use assets. We accelerated technology CAPEX in the second half to approximately R390 million, from the initial first half of 202.9 million.

Speaker #2: This increase reflects a continued investment in our customer experience and digital capability, our network enablement, rather than heavy infrastructure building. The right-of-use asset in the second half of R59 million reflects mainly the renewal of selected network and store leases.

Speaker #2: The remaining spend for CAPEX in that other spend category relates mostly to leasehold improvements, largely linked to ongoing store and brand refresh formats across the business.

[Company Representative] (Cell C): The remaining spend for CapEx in that other spend category relates mostly to leasehold improvements, largely linked to ongoing store and brand refresh formats across the business. As mentioned before, we have upgraded approximately 44 stores over the financial year and have completed the refurbishment of 79 stores since we started this project. Our CapEx profile remains reflective of our asset-light strategy with key investments in customer-facing technologies while maintaining disciplined network spend. I will not spend too much time on this slide as it is just a visual representation of your EBITDA adjustments that I have explained previously. I think it is important to note that there is a 32% improvement year-on-year on EBITDA from a true run rate perspective.

El Tshegofatso Kope: The remaining spend for CapEx in that other spend category relates mostly to leasehold improvements, largely linked to ongoing store and brand refresh formats across the business. As mentioned before, we have upgraded approximately 44 stores over the financial year and have completed the refurbishment of 79 stores since we started this project. Our CapEx profile remains reflective of our asset-light strategy with key investments in customer-facing technologies while maintaining disciplined network spend. I will not spend too much time on this slide as it is just a visual representation of your EBITDA adjustments that I have explained previously. I think it is important to note that there is a 32% improvement year-on-year on EBITDA from a true run rate perspective.

Speaker #2: As mentioned before, we have upgraded approximately 44 stores over the financial year, and have completed the refurbishment of 79 stores since we started this project.

Speaker #2: Our CAPEX profile remains reflective of our asset-light strategy, with key investments in customer-facing technologies while maintaining disciplined network spend. I won't spend too much time on this slide, as it's just a visual representation of your EBITDA adjustments that I've explained previously, but I think it is important to note that there is a 32% improvement year-on-year on EBITDA from a true run-rate perspective.

Speaker #2: On this slide, to provide more clarity on the performance of Cell C from the group as it transitions, we will show you an indicative historical view of revenues and EBITDA against current performance.

[Company Representative] (Cell C): On this slide, to provide more clarity on the performance of Cell C from the group as it transitions, we will show you indicative historical view of revenues and EBITDA against current performance. As noted previously, the Comm Equipment Company acquisition was completed late in November and was not consolidated at all in the H1 and in the previous years. However, we think it is helpful to illustrate what the group profile would have looked like had Comm Equipment Company been included for the first 6 months. On a pro forma basis or recalculated basis, Comm Equipment Company would have contributed approximately ZAR 958 million in revenue, taking the total group revenue to about ZAR 6.6 billion for the H1. This performance would have then moved to the ZAR 7 billion that we have already discussed for the H2.

El Tshegofatso Kope: On this slide, to provide more clarity on the performance of Cell C from the group as it transitions, we will show you indicative historical view of revenues and EBITDA against current performance. As noted previously, the Comm Equipment Company acquisition was completed late in November and was not consolidated at all in the H1 and in the previous years. However, we think it is helpful to illustrate what the group profile would have looked like had Comm Equipment Company been included for the first 6 months. On a pro forma basis or recalculated basis, Comm Equipment Company would have contributed approximately ZAR 958 million in revenue, taking the total group revenue to about ZAR 6.6 billion for the H1. This performance would have then moved to the ZAR 7 billion that we have already discussed for the H2.

Speaker #2: As noted previously, the CEC acquisition was completed late in November and was not consolidated at all in the first half or in previous years.

Speaker #2: However, we think it is helpful to illustrate what the group profile would have looked like had CEC been included for the first six months.

Speaker #2: On a pro forma basis, or recalculated basis, CEC would have contributed approximately $958 million in revenue, taking the total group revenue to about $6.6 billion for the first half.

Speaker #2: This performance would have then moved to the $7 billion that we've already discussed for the second half. From an earnings perspective, or from an EBITDA perspective, CEC would have added approximately $307 million in the first half, although we must be cognizant that this performance does include $220 million in management fees that would not repeat.

[Company Representative] (Cell C): From an earnings perspective or from an EBITDA perspective, Comm Equipment Company would have added approximately ZAR 307 million in the H1. Although we must be cognizant that this performance does include ZAR 220 million in management fees, that would not repeat. If you restate that number then to then reflect this, the EBITDA for the H1 for the business would have been approximately ZAR 1.44 billion. This is in line with our adjusted EBITDA for the H2 at ZAR 1.46 billion. Looking at overall for the business, this slide just brings together the key drivers of revenue performance for the period. Growth was driven by our core operating segments in all prepaid, postpaid, and most notably in wholesale. These gains were partially offset by the decline in the other business category. As noted, these were largely regulatory changes.

El Tshegofatso Kope: From an earnings perspective or from an EBITDA perspective, Comm Equipment Company would have added approximately ZAR 307 million in the H1. Although we must be cognizant that this performance does include ZAR 220 million in management fees, that would not repeat. If you restate that number then to then reflect this, the EBITDA for the H1 for the business would have been approximately ZAR 1.44 billion. This is in line with our adjusted EBITDA for the H2 at ZAR 1.46 billion. Looking at overall for the business, this slide just brings together the key drivers of revenue performance for the period. Growth was driven by our core operating segments in all prepaid, postpaid, and most notably in wholesale. These gains were partially offset by the decline in the other business category. As noted, these were largely regulatory changes.

Speaker #2: If you restate that number, then to reflect this, the EBITDA for the first half for the business would have been approximately R1.44 billion.

Speaker #2: This is in line with the adjusted EBITDA for the second half at R1.46 billion. Looking overall at the business, this slide just brings together the key drivers of revenue performance for the period.

Speaker #2: Growth was driven by our core operating segments in all prepaid, postpaid, and most notably in wholesale. These gains were partially offset by the decline in the Other Business category, as noted; these were largely due to regulatory changes.

Speaker #2: Overall, the bridge highlights a business where growth is increasingly concentrated in scalable, repeatable, and service revenue streams, consistent with the strategy we have outlined.

[Company Representative] (Cell C): Overall, the bridge highlights a business where growth is increasingly concentrated in scalable, repeatable, and service revenue streams, consistent with the strategy we have outlined. Looking at free cash flow. From this perspective, we have achieved a free cash flow of about 44% from a conversion factor for the full year. This is based on using the free cash flow calculators as a percentage of adjusted EBITDA. I would much rather like to spend more time on the H2 to explain how this looks. For the H2, we have a free cash flow conversion of 48%. CapEx investment, as mentioned, has already accelerated with a spend of about ZAR 415 million. Core finance leases and payments were approximately ZAR 41 million in this half, and this reflects a more accurate run rate.

El Tshegofatso Kope: Overall, the bridge highlights a business where growth is increasingly concentrated in scalable, repeatable, and service revenue streams, consistent with the strategy we have outlined. Looking at free cash flow. From this perspective, we have achieved a free cash flow of about 44% from a conversion factor for the full year. This is based on using the free cash flow calculators as a percentage of adjusted EBITDA. I would much rather like to spend more time on the H2 to explain how this looks. For the H2, we have a free cash flow conversion of 48%. CapEx investment, as mentioned, has already accelerated with a spend of about ZAR 415 million. Core finance leases and payments were approximately ZAR 41 million in this half, and this reflects a more accurate run rate.

Speaker #2: Looking at free cash flow from this perspective, we've achieved a free cash flow conversion factor of about 44% for the full year.

Speaker #2: This is based on using the free cash flow calculators as a percentage of adjusted EBITDA. I would much rather spend more time on the second half of the year to explain how this looks.

Speaker #2: For the second half of the year, we have a free cash flow conversion of 48%. CAPEX index investment, as mentioned, has already accelerated, with a spend of about $415 million.

Speaker #2: Core finance leases and payments were approximately $41 million in this half, and this reflects a more accurate run rate. Just to note, however, that leases do sit both under the lease payments and also under the interest component, and we’ll cover that shortly.

[Company Representative] (Cell C): Just to note, however, that leases do sit both under the lease payments and also under the interest component, and I will cover that shortly. The 13% tax is corporate tax that was paid in the H1. As you all know, we do have a rather large or usable tax loss, so our tax payments remain low. When you look at our finance costs, this includes interest not only on capital pay and capital payments on the loan, and also on the leases. The interest relating to the postpaid facility for this H1 was approximately ZAR 69 million, and the capital payments were around ZAR 106 million. The interest on working capital was about ZAR 19 million for the full business, with lease interest of about ZAR 98 million. We have already covered most of the revenue lines and the key items impacting expenses.

El Tshegofatso Kope: Just to note, however, that leases do sit both under the lease payments and also under the interest component, and I will cover that shortly. The 13% tax is corporate tax that was paid in the H1. As you all know, we do have a rather large or usable tax loss, so our tax payments remain low. When you look at our finance costs, this includes interest not only on capital pay and capital payments on the loan, and also on the leases. The interest relating to the postpaid facility for this H1 was approximately ZAR 69 million, and the capital payments were around ZAR 106 million. The interest on working capital was about ZAR 19 million for the full business, with lease interest of about ZAR 98 million. We have already covered most of the revenue lines and the key items impacting expenses.

Speaker #2: The 13% tax is corporate tax that was paid in the half. As you all know, we do have a rather large, all-usable tax loss, so our tax payments remain low.

Speaker #2: When you look at our finance costs, this includes interest not only on capital payments on the loan, but also on the leases. The interest relating to the postpaid facility for this half was approximately R69 million, and the capital payments were around R106 million.

Speaker #2: The interest on working capital was about R19 million for the full business, with lease interest of about R98 million. We've already covered most of the revenue lines and the key items impacting expenses, so this slide briefly summarizes the statement of comprehensive income.

[Company Representative] (Cell C): This slide briefly summarizes a statement of comprehensive income. Other income includes the one-off benefit of ZAR 3.5 billion from the debt concession that was done during the listing, as well as the ZAR 474 million benefit from the settlement of sundry creditors, which was one of the pre-listing steps. This benefit is however netted off by a cancellation charge of about ZAR 118 million. The H2 of the year just shows more normal operations in that line and reflects mostly franchisee recoveries. Direct expenses include operating and employee costs, while transaction costs and your IFRS 2 costs of approximately ZAR 202 million are reflected under the other expenses line for the year. Just to note that your transaction costs were around ZAR 233 million for the year.

El Tshegofatso Kope: This slide briefly summarizes a statement of comprehensive income. Other income includes the one-off benefit of ZAR 3.5 billion from the debt concession that was done during the listing, as well as the ZAR 474 million benefit from the settlement of sundry creditors, which was one of the pre-listing steps. This benefit is however netted off by a cancellation charge of about ZAR 118 million. The H2 of the year just shows more normal operations in that line and reflects mostly franchisee recoveries. Direct expenses include operating and employee costs, while transaction costs and your IFRS 2 costs of approximately ZAR 202 million are reflected under the other expenses line for the year. Just to note that your transaction costs were around ZAR 233 million for the year.

Speaker #2: Other income includes the one-off benefit of R3.5 billion from the debt concession that was done during the listing, as well as the R474 million benefit from the settlement of sundry creditors, which was one of the pre-listing steps.

Speaker #2: This benefit is, however, netted off by a cancellation charge of about R118 million. The second half of the year just shows more normal operations in that line, and reflects mostly franchisee direct expenses, including operating and employee costs. Transaction costs and your IFRS 2 costs of approximately R202 million are reflected under the other expenses line for the year.

Speaker #2: Just to note that your transaction costs were around $233 million for the year. The second half finance costs include interest for the postpaid facility and for the leases, circa $198 million in total—a run rate that will continue.

[Company Representative] (Cell C): The H2 finance costs include interest for the postpaid facility and for the leases, circa ZAR 198 million in total, a run rate that will continue. The tax for the year comprises of two items, reversals of approximately ZAR 143 million from prior periods for both entities, partly offset by the current tax charge of about ZAR 59 million. Together with the deferred tax benefit of about ZAR 46 million. Rebasing our balance sheets is continuing. The 2025 comparatives you are seeing here are a Cell C standalone view. Looking at non-current assets, the deferred tax asset remains flat at the ZAR 2 billion, similar to prior. We will start consuming this asset in the coming periods. The intangible assets increased from ZAR 1.3 billion to about ZAR 2.6 billion. This includes intangibles from the business acquisitions, so from buying Comm Equipment Company of about ZAR 1.2 billion. A further goodwill recognition in there of about ZAR 866 million.

El Tshegofatso Kope: The H2 finance costs include interest for the postpaid facility and for the leases, circa ZAR 198 million in total, a run rate that will continue. The tax for the year comprises of two items, reversals of approximately ZAR 143 million from prior periods for both entities, partly offset by the current tax charge of about ZAR 59 million. Together with the deferred tax benefit of about ZAR 46 million. Rebasing our balance sheets is continuing. The 2025 comparatives you are seeing here are a Cell C standalone view. Looking at non-current assets, the deferred tax asset remains flat at the ZAR 2 billion, similar to prior.

Speaker #2: The tax for the year comprises two items: reversals of approximately 143 million from prior periods for both entities, partly offset by the current tax charge of about 59 million rand.

Speaker #2: Together with the deferred tax benefits of about $46 million. Rebasing our balance sheet is continuing. The 2025 comparative you're seeing here is a selfie standalone view.

Speaker #2: Looking at non-current assets, the deferred tax asset remains flat at $2 billion, similar to the prior year. We'll start consuming this asset in the coming periods.

El Tshegofatso Kope: We will start consuming this asset in the coming periods. The intangible assets increased from ZAR 1.3 billion to about ZAR 2.6 billion. This includes intangibles from the business acquisitions, so from buying Comm Equipment Company of about ZAR 1.2 billion. A further goodwill recognition in there of about ZAR 866 million.

Speaker #2: The intangible assets increased from $1.3 billion to about $2.6 billion. This includes intangibles from the business acquisitions, so from buying CEC of about $1.2 billion, a further goodwill recognition in there of about $866 million, and we also have PPE of about $724 million.

[Company Representative] (Cell C): And we also have PPE of about ZAR 724 million. There are other receivables that came with the business acquisition as well that make up the balance. Our current assets of ZAR 3.4 billion reflect Cell C's receivable of ZAR 838 million, alongside Comm Equipment Company's receivable of roughly around the same, ZAR 880 million. With other acquired receivables of approximately ZAR 1.3 billion, and most of those relate to customer advances, which is mostly a handset receivable. The year-on-year movements and liabilities are influenced by the debt to equity conversion, the sundry creditor settlement, and the stock buyback by Cell C from The Prepaid Company. Our non-current liabilities are predominantly made up of the postpaid facilities at ZAR 1.3 billion and the leases of ZAR 622 million. To better understand our full lease exposure, the other current liabilities include ZAR 180 million of leases in there. That would bring our full lease liability to ZAR 802 million.

El Tshegofatso Kope: And we also have PPE of about ZAR 724 million. There are other receivables that came with the business acquisition as well that make up the balance. Our current assets of ZAR 3.4 billion reflect Cell C's receivable of ZAR 838 million, alongside Comm Equipment Company's receivable of roughly around the same, ZAR 880 million. With other acquired receivables of approximately ZAR 1.3 billion, and most of those relate to customer advances, which is mostly a handset receivable. The year-on-year movements and liabilities are influenced by the debt to equity conversion, the sundry creditor settlement, and the stock buyback by Cell C from The Prepaid Company.

Speaker #2: There are other receivables that came with the business acquisition as well that make up the balance. Our current assets of $3.4 billion reflect Cell C's receivable of $838 million, alongside CEC's receivable of roughly around the same, $880 million.

Speaker #2: With other acquired receivables of approximately $1.3 billion, and most of those relate to customer advances, which is mostly a handset receivable. The year-on-year movements in liabilities are influenced by the debt-to-equity conversion, the sundry creditor settlement, and the stock buyback by Selfie from TPC.

Speaker #2: Our non-current liabilities are predominantly made up of the postpaid facilities at R1.3 billion, and the leases of R622 million. To better understand our full lease exposure, the other current liabilities include R180 million of leases in there.

El Tshegofatso Kope: Our non-current liabilities are predominantly made up of the postpaid facilities at ZAR 1.3 billion and the leases of ZAR 622 million. To better understand our full lease exposure, the other current liabilities include ZAR 180 million of leases in there. That would bring our full lease liability to ZAR 802 million. We continue to trade out of the working capital deficit position with an improvement of ZAR 709 million in the H2 of the year. This coming from restructuring our long-term facilities, but also starting to settle our trade payables. This is a profile that we think we will continue to maintain and are comfortable that we will continue to trade our way out of this deficit. Looking at the more formal cash flow statement.

Speaker #2: That would bring our full lease liability to R802 million. We continue to trade out of the working capital deficit position, with an improvement of R709 million in the second half of the year.

[Company Representative] (Cell C): We continue to trade out of the working capital deficit position with an improvement of ZAR 709 million in the H2 of the year. This coming from restructuring our long-term facilities, but also starting to settle our trade payables. This is a profile that we think we will continue to maintain and are comfortable that we will continue to trade our way out of this deficit. Looking at the more formal cash flow statement. Here we show the cash flow for the period, and it is important to note that this reflects the consolidated cash flows for both CEC and Cell C in the H2. Cash generation from operations was strong at approximately ZAR 1.6 billion. This was supported by the strong underlying performance of the business as previously discussed, or 1.7.

Speaker #2: This comes from restructuring our long-term facilities, but also from starting to settle our trade payables. This is a profile that we think we will continue to maintain, and we are comfortable that we'll continue to trade our way out of this deficit.

Speaker #2: Looking at the more formal cash flow statement, here we show the cash flow for the period, and it is important to note that this reflects a consolidated cash flow for both CEC and Selfie in the second half.

El Tshegofatso Kope: Here we show the cash flow for the period, and it is important to note that this reflects the consolidated cash flows for both CEC and Cell C in the H2. Cash generation from operations was strong at approximately ZAR 1.6 billion. This was supported by the strong underlying performance of the business as previously discussed, or 1.7.

Speaker #2: Cash generation from operations was strong, at approximately R1.6 billion. This was supported by the strong underlying performance of the business, as previously discussed, or R1.7 billion.

Speaker #2: On the investing side, cash outflows of $755 million were primarily driven by the CAPEX spend during the period. The CAPEX spend included, and continues to include, customer experience-enhancing investments, including additional software and digital capabilities.

[Company Representative] (Cell C): On the investing side, cash outflows of ZAR 755 million were primarily driven mostly by the CapEx spend within the period. The CapEx spend included, and continues to include customer experience enhancing investments, including additional software and digital capabilities, as well as leasehold improvements as we continue to develop and refresh our branded footprint as mentioned. Our financing cash outflows of ZAR 899 million mostly reflect a combination of the interest on the loans, and the leases as well, and the loan capital repayment mentioned earlier of ZAR 106 million. As well as the settlement of certain lease liabilities as part of the broader restructuring. Overall, cash and cash equivalents declined modestly over the period, closing at about ZAR 133 million, reflecting our ongoing strategy to improve our liquidity position overall. With that, I will hand back to George, who will take you through the outlook and the priorities.

El Tshegofatso Kope: On the investing side, cash outflows of ZAR 755 million were primarily driven mostly by the CapEx spend within the period. The CapEx spend included, and continues to include customer experience enhancing investments, including additional software and digital capabilities, as well as leasehold improvements as we continue to develop and refresh our branded footprint as mentioned. Our financing cash outflows of ZAR 899 million mostly reflect a combination of the interest on the loans, and the leases as well, and the loan capital repayment mentioned earlier of ZAR 106 million. As well as the settlement of certain lease liabilities as part of the broader restructuring. Overall, cash and cash equivalents declined modestly over the period, closing at about ZAR 133 million, reflecting our ongoing strategy to improve our liquidity position overall. With that, I will hand back to George, who will take you through the outlook and the priorities.

Speaker #2: As well as leasehold improvements, as we continue to develop and refresh our branded footprint, as mentioned. Our financing cash outflows of R899 million mostly reflect a combination of interest on the loans and the leases as well, and the loan capital repayment mentioned earlier of R106 million.

Speaker #2: As well as the settlement of certain lease liabilities as part of the broader restructuring. Overall, cash and cash equivalents declined modestly over the period, closing at about $133 million, reflecting our ongoing strategy to improve our liquidity position overall.

Speaker #2: With that, I'll hand back to George, who will take you through the outlook and the priorities.

Speaker #1: Thank you, Elle. Let's help you down here.

Jorge Mendes: Thank you, Al.

Speaker #2: Thanks, Joe. Thank you.

[Company Representative] (Cell C): Thanks, George.

El Tshegofatso Kope: Thanks, George.

Jorge Mendes: Just help you down here.

[Company Representative] (Cell C): Thank you.

El Tshegofatso Kope: Thank you.

Speaker #1: Thank you very much, Elle. Our guidance is based on adjusted 2026 numbers, which will provide a comparable view of the underlying business following the inclusion of CEC and the adjustment for the one-off items.

Jorge Mendes: Thanks very much, Al. Our guidance is based on adjusted 2026 numbers, which will provide a comparable view of the underlying business following the inclusion of CEC and the adjustment for the one-off items. The adjusted revenue base is ZAR 13.6 billion, and from that base, we expect revenue growth of between 5% and 10% in 2027. Adjusted EBITDA of ZAR 2.7 billion reflects a full year contribution from CEC and the normalization of adjustments set out on slide 20. Additionally, as we noted earlier, this number is negatively impacted by a ZAR 220 million management fee. On a normalized basis, the underlying EBITDA for the past year was ZAR 2.9 billion, in line with our guidance. We expect EBITDA to increase to approximately ZAR 3 billion in 2027.

Speaker #1: The adjusted revenue base is $13.6 billion, and from that base we expect revenue growth of between 5 and 10 percent in 2027. Adjusted EBITDA of $2.7 billion reflects a full-year contribution from CEC and the normalization of adjustments set out on Slide 20.

Speaker #1: Additionally, as we noted earlier, this number is negatively impacted by a $220 million management fee, so on a normalized basis, the underlying EBITDA for the past year was $2.9 billion, in line with our guidance.

Speaker #1: We expect EBITDA to increase to approximately $3 billion in 2027. Our outlook incorporates the expected impact of the mobile termination rates glide path and the end-user subscriber-charted data rollover provisions.

Jorge Mendes: Our outlook incorporates the expected impact of the mobile termination rates glide path and the End-User and Subscriber Service Charter data rollover provisions, which together represent a headwind of more than ZAR 400 million. We expect capital investment to remain disciplined with CapEx of between ZAR 750 million and ZAR 850 million, supporting growth while maintaining strong cash management. I think looking ahead, our priorities are focused on sustaining the momentum that we've built and strengthening the returns. We will continue to drive profitable growth in prepaid and postpaid while compounding our platform-led growth strategy, stronger partnership relationships, and further diversification. At the same time, we will manage the regulatory impacts carefully and maintain the financial discipline needed to unlock shareholder value. These focus areas are aligned to building a stronger, more resilient Cell C over the coming period. Thank you for joining us once again. We will now take any questions.

Speaker #1: Which together represent a headwind of more than $400 million. We expect capital investment to remain disciplined, with CAPEX of between $750 million and $850 million, supporting growth while maintaining strong cash management.

Speaker #1: I think, looking ahead, our priorities are focused on sustaining the momentum that we've built and strengthening the returns. We will continue to drive profitable growth in both prepaid and postpaid.

Speaker #1: While compounding our platform-led growth strategy, we are building stronger partnership relationships and further diversification. At the same time, we will manage the regulatory impacts carefully and maintain the financial discipline needed to unlock shareholder value.

Jorge Mendes: At the same time, we will manage the regulatory impacts carefully and maintain the financial discipline needed to unlock shareholder value. These focus areas are aligned to building a stronger, more resilient Cell C over the coming period. Thank you for joining us once again. We will now take any questions.

Speaker #1: These focus areas are aligned to building a stronger, more resilient Cell C over the coming period. Thank you for joining us once again. We will now take any questions.

Speaker #3: Hi, everyone. It's Louise Pelé from Investec. Thanks for the presentation. George, a question to you: Since the IPO is done and dusted, what are maybe your top three priorities, especially on the commercial aspects? And then I have a question on the guidance for Elle.

Louise Pillay: Hi, everyone. It's Louise Pillay from Investec. Thanks for the presentation. George, a question to you. Since the IPO is done and dusted, what are your top three priorities, especially on the commercial aspects? I have a question on the guidance for Al.

Speaker #1: Okay, thank you very much, Louise. Thanks very much. I mean, we've already highlighted our focus areas also. I think it's important to note that our strategy over the last three years has built what we have today. We're not deviating from that.

Jorge Mendes: Okay.

Louise Pillay: Thanks.

Jorge Mendes: Thank you very much, Louise. Thanks very much. We've already highlighted where our focus areas are. I think importantly to note that our strategy over the last three years has built what we have today. We're not deviating from that. We've now spoken about the five strategic pillars going forward. We need to remain fiercely competitive in the prepaid space. The numbers so far reflect that, and the trajectory is good. I think the one point is on postpaid. It takes longer. The integration is now done. We now have access to liquidity in a different format or capital that we didn't perhaps have before. That's real. That unlocks device strategy for postpaid propositions. That should be an improvement in the coming quarters, halves, and year. Why you've seen a fairly flat at 1.2% postpaid. MVNO, we believe that should sustain and continue.

Speaker #1: We've now spoken about the five strategic pillars going forward. We need to remain fiercely competitive in the prepaid space. The numbers so far reflect that, and the trajectory is good.

Speaker #1: I think the one point is on postpaid. It takes longer. The integration is now done. We now have access to liquidity in a different format, or capital that we didn't perhaps have before.

Speaker #1: And that's real. That unlocks device strategy for postpaid propositions. So, that should be an improvement in the coming quarters, halves, and year, while you've seen a fairly flat—at 1.2 percent—postpaid.

Speaker #1: MVNO—we believe that should sustain and continue. We really are deliberate about being the home of MVNOs as a strategy. We believe we give our MVNO partners, for whom we're very grateful, the highest level of probability of success given the alignment of strategy.

Jorge Mendes: We really are deliberate about being the home of MVNOs as a strategy. We believe we give our MVNO partners, which we're very grateful for, the highest level of probability of success given the alignment of strategy and our sharpness in execution. I think one of the key focus areas which we will continue to add is, or to add the primary focus, which has been slow, is enterprise. Enterprise, we believe strategically, is absolutely the right thing. On core connectivity services, we think we're doing quite well, but it's off a very small base. On the adjacent services, SD-WAN, hosting, SIP trunks, all those kind of initiatives, RT15, RT29 type tenders, they take a little bit of time. IoT. If you look at machine-to-machine, very specific focus for us, but the lead times are a bit longer.

Speaker #1: And our sharpness in execution. I think one of the key focus areas which we will continue to add is, or to add the primary focus which has been slow, is enterprise.

Speaker #1: Enterprise, we believe strategically, is absolutely the right thing. On core connectivity services, we think we're doing quite well, but it's off a very small base.

Speaker #1: On the adjacent services—SD-WAN, hosting, SIP trunks, all those kinds of initiatives—are T15 or T29 type tenders. They take a little bit of time.

Speaker #1: IoT—so if you look at machine-to-machine, it's a very specific focus for us, but the lead times are a bit longer. So we think that, operationally, our lines of business are all firing well, with probably enterprise being a little slow, but we expect that to follow through in time.

Jorge Mendes: We think that operationally our lines of business are all firing well with probably enterprise being a little slow, but we expect that to follow through in time. That's really our position. All of that underpinned by a fundamentally different and deleveraged balance sheet. I think we can't take away from the position that we've come from. We're generating good cash. We're sorting out some of the debt of the past still, but I think that improves as time goes by and into the next half and into the next 12 months.

Speaker #1: So that's really our position—all of that underpinned by a fundamentally different and de-leveraged balance sheet. I think we can't take away from the position that we've come from.

Speaker #1: We're generating good cash. We're still sorting out some of the debt from the past, but I think that improves as time goes by, into the next half and into the next 12 months.

Speaker #3: Thanks. And then a few questions on the guidance. You’ve only provided guidance for 2027, so the first question is: does your medium-term guidance that you provided at IPO still hold?

Louise Pillay: Thanks. A few questions on the guidance. You have only provided guidance for 2027. The first question is: does your medium-term guidance that you provided at IPO still hold? The second is on your revenue growth, 5% to 10%. That is well ahead of your peers in South Africa. Can you unpack that on a divisional level? Where do you see that growth coming from? Prepaid, postpaid, if possible. Your EBITDA of ZAR 3 billion for this upcoming year, FY27. It seems you are going to generate some level of positive Jaws coming through. Can you maybe speak of what is the specific cost efficiency target you are looking at for this year? Thanks.

Speaker #3: The second is on your revenue growth, 5 to 10 percent. That's well ahead of your peers in South Africa. Can you unpack that on a divisional level?

Speaker #3: Where do you see that growth coming from? Prepaid, postpaid, if possible? And then, your EBITDA of $3 billion for this upcoming year, FY27—it seems you are going to generate some level of positive jaws coming through.

Speaker #3: Can you maybe speak to what is the specific cost efficiency target you are looking at for this year? Thanks.

Speaker #2: So, I'll take some of that. You asked many questions, so if I miss one, please keep me on track. On the guidance for next year, yes, we have provided the one-year at the moment, and we are still very much in line to meet our short- to medium-term guidance that we provided during the listing process, and we're quite comfortable with that.

[Company Representative] (Cell C): I will take some of that. You asked many questions, so if I miss one, please cut me through. On the guidance for next year, yes, we have provided the one year at the moment, and we are still very much in line to meet our short to medium-term guidance that we provided during the listing process, and we are quite comfortable with that. From a core performance perspective, George and I will intermingle on this one on the big performance by segments. We had always said that primarily we are expecting prepaid to continue to grow, postpaid to accelerate and grow slightly above ahead of the market. That one we do, though, have to make sure, and that is part of why we did what we did at the end of last year in aligning the churn rules.

El Tshegofatso Kope: I will take some of that. You asked many questions, so if I miss one, please cut me through. On the guidance for next year, yes, we have provided the one year at the moment, and we are still very much in line to meet our short to medium-term guidance that we provided during the listing process, and we are quite comfortable with that. From a core performance perspective, George and I will intermingle on this one on the big performance by segments. We had always said that primarily we are expecting prepaid to continue to grow, postpaid to accelerate and grow slightly above ahead of the market. That one we do, though, have to make sure, and that is part of why we did what we did at the end of last year in aligning the churn rules.

Speaker #2: From a core performance perspective, George and I will intermingle on this one—on the big performance by segments. But we'd always said that primarily we are expecting prepaid to continue to grow, and postpaid to accelerate and grow slightly ahead of the market.

Speaker #2: That one we do, though, have to make sure, and that's part of why we did what we did at the end of last year in aligning the churn rules.

Speaker #2: We have to rebase it to make sure that the foundation for growth is solid. And we've needed to spend a lot of time restructuring our debt components to make sure we can fund the assets that are required to grow both postpaid and enterprise.

[Company Representative] (Cell C): We have to rebase it to make sure that the foundation for growth is solid, and we need to spend a lot of time restructuring our debt components to make sure we can fund the assets that are required to grow both postpaid and enterprise. Wholesale, George had already mentioned, is doing pretty well currently, and we are going to continue with those partnerships to then deliver more growth. I think George can get into more specifics.

El Tshegofatso Kope: We have to rebase it to make sure that the foundation for growth is solid, and we need to spend a lot of time restructuring our debt components to make sure we can fund the assets that are required to grow both postpaid and enterprise. Wholesale, George had already mentioned, is doing pretty well currently, and we are going to continue with those partnerships to then deliver more growth. I think George can get into more specifics.

Speaker #2: And then wholesale, as George had already mentioned, is doing pretty well currently, and we're going to continue with those partnerships to deliver more growth.

Speaker #2: I think George can get into more specifics.

Speaker #1: Yeah, I think, just to echo, I mean, postpaid, as I've mentioned, is 1.2. That will improve, because it will improve on the availability of cash to fund hardware and device propositions.

Jorge Mendes: Yeah, I think just to echo. Postpaid, as I have mentioned, is 1.2. That will improve, because it will improve on the availability of cash to fund hardware and device propositions. We have fundamentally enhanced channels. We were not in certain channels before. We are there now. A little bit of higher value but low volume. Postpaid will be a gradual improvement. I think these journeys are, to be brutally honest, about a two-year period where you start really seeing some growth. Prepaid, we believe, will continue to perform. We have to stay sharp. We are in a fiercely competitive market. We have got lots of regulatory changes which we have spoken about, but there is a number of moving parts in the market. We believe we have positioned our team very well to proactively try and mitigate some of that risk. The timing of some of these things have an impact in the year.

Speaker #1: We've fundamentally enhanced channels. We were not in certain channels before; we're there now. A little bit of higher value, but low volume. So postpaid will be a gradual improvement.

Speaker #1: And I think these journeys, to be brutally honest, are about a two-year period where you start really seeing some growth. Prepaid, we believe, will continue to perform.

Speaker #1: We have to stay sharp. We're in a fiercely competitive market. We've got lots of regulatory changes, which we've spoken about. But there are a number of moving parts in the market.

Jorge Mendes: We have to stay sharp. We are in a fiercely competitive market. We have got lots of regulatory changes which we have spoken about, but there is a number of moving parts in the market. We believe we have positioned our team very well to proactively try and mitigate some of that risk. The timing of some of these things have an impact in the year.

Speaker #1: We believe we've positioned our team very well to proactively try and mitigate some of that risk. The timing of some of these things does have an impact in the year.

Speaker #1: End user subscriber charter—if it goes ahead—there are already court proceedings by two other operators on ECASA. So, depending on whether that is pooled, goes ahead, et cetera.

Jorge Mendes: End-User and Subscriber Service Charter, if it goes ahead, there are already court proceedings by two other operators on ICASA. Depending on whether that is pulled, goes ahead, et cetera. Prepaid will continue to perform. MVNO business will continue to perform at that rate. The postpaid will improve, and enterprise will improve. Enterprise could be quite lumpy. I think it is important for me to highlight that because of our very low base. If you land some big deals within enterprise public sector or private sector, that could be a little bit lumpy. But the consistency of the core connectivity is there. The business plans, which we now have in our stores, and we have revamped 44 in the period, 79 in total of the 103. That product or those set of products are now available in these stores as well.

Speaker #1: So prepaid will continue to perform. MVNO business will continue to perform at that rate. The postpaid will improve, and enterprise will improve. Enterprise could be quite lumpy.

Speaker #1: So I think it's important for me to highlight that, because of our very low base, if you land some big deals within enterprise, public sector, or private sector, that could be a little bit lumpy.

Speaker #1: But the consistency of the core connectivity is there. So the business plans, which we now have in our stores—and we've revamped 44 in the period, 79 in total out of the 103.

Speaker #1: So that product, or those set of products, are now available in these stores as well. So it is a mixture of different lines of business.

Jorge Mendes: It is a mixture of different lines of business. It has been deliberate and intentional. We do not want to be known as only one line of business kind of environment. It has been deliberate to have. If you look at the spread of the revenue, we have a well mitigated spread of revenue, and we intend that every line of business at least performs relatively well. I think then there was a last one on-

Speaker #1: It's been deliberate and intentional. We don't want to be known as only a one-line-of-business kind of environment. So it's been deliberate. If you look at the spread of the revenue, we've got a well-mitigated spread of revenue.

Speaker #1: And we intend that every line of business at least performs relatively well. I think then there was a last one on—

[Company Representative] (Cell C): There was one on cost efficiency and EBITDA. I am going to answer that twofold. I am not just going to talk about cost efficiencies, I am just going to talk about the business as a whole. One of the slides that George showed was how our business mix looks. The more our business mix continues to evolve, our profitability will evolve with it. That for us is actually quite important because we want a sustainable future-proofed business. There are plenty areas of growth through the business that we still need to go and get. It is not just cost efficiencies that lead to the EBITDA, it is also the fact that you expect your growth and revenue to outpace your costs. That is important. From a cost perspective, we will continue to be as prudent as we have always been. We have always said we are a very lean business.

El Tshegofatso Kope: There was one on cost efficiency [crosstalk] and EBITDA. I am going to answer that twofold. I am not just going to talk about cost efficiencies, I am just going to talk about the business as a whole. One of the slides that George showed was how our business mix looks. The more our business mix continues to evolve, our profitability will evolve with it. That for us is actually quite important because we want a sustainable future-proofed business. There are plenty areas of growth through the business that we still need to go and get.

Speaker #2: There was a question on cost efficiency and EBITDA. So I'm going to answer that twofold—I'm not just going to talk about cost efficiencies.

Speaker #2: I'm just going to talk about the business as a whole. So, one of the slides that George showed was how our mix, our business mix, looks.

Speaker #2: The more our business mix continues to evolve, our profitability will evolve with it. And that, for us, is actually quite important because we want a sustainable, future-proofed business.

Speaker #2: There are plenty of areas of growth through the business that we still need to go and get. So, it's not just cost efficiencies that lead to the EBITDA.

El Tshegofatso Kope: It is not just cost efficiencies that lead to the EBITDA, it is also the fact that you expect your growth and revenue to outpace your costs. That is important. From a cost perspective, we will continue to be as prudent as we have always been. We have always said we are a very lean business. We only have 914 people, including the Comm Equipment Company team. We have continued with our franchising initiative, as we go through, our headcount might reduce. We also believe in implementing digital-first solutions. We will definitely look at those to make us more efficient, rather than bringing on more people, get the right systems to do the right things for the right purpose.

Speaker #2: It's also the fact that you expect your growth in revenue to outpace your costs, and that's important. From a cost perspective, we will continue to be as prudent as we've always been.

Speaker #2: We've always said we're a very lean business. We only have 914 people, including the CEC team. We've continued with our franchising initiative. So, as we go through, our headcount might reduce.

[Company Representative] (Cell C): We only have 914 people, including the Comm Equipment Company team. We have continued with our franchising initiative, as we go through, our headcount might reduce. We also believe in implementing digital-first solutions. We will definitely look at those to make us more efficient, rather than bringing on more people, get the right systems to do the right things for the right purpose. That is quite important for us. Channel economics and making sure we land good channel economics is very important. We have already spoken quite a bit about the normalizations of discounts, but maintaining that is quite important. Also understanding what is the right, and I will call it incentivization for the different trades to achieve the growth that you need, is quite important from a direct cost perspective. We also remain very prudent across the board.

Speaker #2: We also believe in implementing digital-first solutions, so we will definitely look at those to make us more efficient. Rather than bringing on more people, we'll get the right systems to do the right things for the right purpose.

Speaker #2: So that's quite important for us. Channel economics, and making sure we land good channel economics, is very important. So we've already spoken quite a bit about the normalization of discounts.

El Tshegofatso Kope: That is quite important for us. Channel economics and making sure we land good channel economics is very important. We have already spoken quite a bit about the normalizations of discounts, but maintaining that is quite important. Also understanding what is the right, and I will call it incentivization for the different trades to achieve the growth that you need, is quite important from a direct cost perspective. We also remain very prudent across the board.

Speaker #2: But maintaining that is quite important. And then also understanding what is the right, and I'll call it, incentivization for the different trades to achieve the growth that you need is quite important from a direct cost perspective.

Speaker #2: We also remain very prudent across the board. I mean, Mel used to joke that her marketing budget was an Excel. But we do return on that budget for good reason.

[Company Representative] (Cell C): Mel used to joke that her marketing budget was in Excel, but we do return on that budget for good reason, and that's why we partner with the people we partner with from a marketing perspective. We don't look at this in silos. We have a full efficiency program that we run for the whole year, targeted into all leadership to make sure that everybody's focused on achieving it. And that is something we continue to do to just make the business efficient.

El Tshegofatso Kope: Mel used to joke that her marketing budget was in Excel, but we do return on that budget for good reason, and that's why we partner with the people we partner with from a marketing perspective. We don't look at this in silos. We have a full efficiency program that we run for the whole year, targeted into all leadership to make sure that everybody's focused on achieving it. And that is something we continue to do to just make the business efficient.

Speaker #2: And that's why we partner with the people we partner with from a marketing perspective. So we don't look at this in silos. We have a full efficiency program that we run for the whole year, targeted to all leadership, to make sure that everybody's focused on achieving it.

Speaker #2: And that is something we continue to do, to just make the business efficient.

Speaker #3: Thank you. Good morning, and this is Rio Copiso from R&B Morgan Stanley. The question that I've got is just some color around your prepaid strategy.

[Analyst]: Thank you.

Louise Pillay: Thank you.

Vuyo Kupiso: Good morning, this is Vuyo Kupiso from RMB Morgan Stanley. A question that I've got is just some color around your prepaid strategy. We've seen your peers shedding subscribers, more recently, going for a quality over quantity type of approach. What is the subscriber growth that you're getting in prepaid costing you in terms of ARPU? ARPU continues to slide back at a decent clip. And just more broadly, where are you gaining these subscribers from? A concern that I have is that you are taking all of these subscribers that are being shed by your peers, which is leading to your high churn. So a bit more color on that prepaid strategy and where you think you could be taking share from.

Viwe Kupiso: Good morning, this is Vuyo Kupiso from RMB Morgan Stanley. A question that I've got is just some color around your prepaid strategy. We've seen your peers shedding subscribers, more recently, going for a quality over quantity type of approach. What is the subscriber growth that you're getting in prepaid costing you in terms of ARPU? ARPU continues to slide back at a decent clip. And just more broadly, where are you gaining these subscribers from? A concern that I have is that you are taking all of these subscribers that are being shed by your peers, which is leading to your high churn. So a bit more color on that prepaid strategy and where you think you could be taking share from.

Speaker #3: We've seen your peers shedding subscribers more recently, going for a quality over quantity type of approach. What is the subscriber growth that you're getting in prepaid costing you in terms of ARPU, as it continues to slide back at a decent clip?

Speaker #3: And just more broadly, where are you gaining these subscribers from? A concern that I have is that you are taking all of these subscribers that are being shared by your peers, which is leading to your high churn.

Speaker #3: So, could you provide a bit more color on that prepaid strategy and where you think you could be taking share from?

Speaker #1: Yeah, thank you. Thanks very much. Maybe just a bit of context—I'm not sure we have more churn than our competitors. I think it's largely in line.

Jorge Mendes: Yeah. Thanks, Vuyo. Thanks very much. Maybe just a bit of context. I'm not sure we have more churn than our competitors. I think it's largely in line. And if you look at the wholesale sector of prepaid, you're talking pretty much 100% churn that happens all the time over an annualized period. So what will change that going forward is maybe the quality of the implementation of RICA. The networks that are part of the ICT forum have signed an agreement to tighten up on that and really improve that. So that, I think, will be done as a collective.

Speaker #1: And if you look at the wholesale sector of prepaid, you're talking pretty much 100% churn that happens all the time over an annualized period.

Speaker #1: So, what will change that going forward is maybe the quality of the implementation of RICA. The networks that are part of the ACT forum have signed an agreement to tighten up on that and really improve that.

Speaker #1: So that, I think, will be done as a collective. So over the next 6, 12, 18, 24 months, you'll probably see a better quality coming through in terms of the RICA adherence.

Jorge Mendes: Over the next 6, 12, 18, 24 months, you will probably see a better quality coming through in terms of the RICA adherence, because everyone complies, but it is more the quality of the data that will improve over time, and that could have an impact on kind of the gross adds. That is forward-looking. When you look at our ARPU, we have gone from 78 on prepaid to 71. 71 is still fundamentally best in class when you look at competitors. I am not aligned with you when you say we are picking up what others are not wanting. We do take every revenue opportunity in the market. On inflow, how we manage our business through the eyebrow methodology. On inflow, you will normally pick up inflow revenue slightly lower as it then goes into base revenue with CVM campaigns, et cetera.

Speaker #1: Because everyone complies more, the quality of the data will improve over time. And that could have an impact on, kind of, the gross adds.

Speaker #1: So that's forward-looking. When you look at our RPU, we've gone from 78 on prepaid to 71. Seventy-one is still fundamentally best in class. When you look at competitors, I'm not aligned with you when you say we're picking up what others are not wanting.

Speaker #1: We do take every revenue opportunity in the market. So, on inflow, how we manage our business is through the "eyebrow" methodology. On inflow, you will normally pick up inflow revenue slightly lower, as it then goes into base revenue with CVM campaigns, et cetera.

Speaker #1: You're also very strong propositions on inflow. That sometimes can behave as a calling card. We are a very commercially savvy organization. We don't want to connect customers for the sake of connecting customers.

Jorge Mendes: You also have very strong propositions on inflow that sometimes can behave as a calling card. We are a very commercially savvy organization. We do not want to connect customers for the sake of connecting customers. We pay license fees on platforms. We pay license fees on all sorts of technology assets that we have. So it is not in our interest to connect subscribers that have no value or very short tenure. We have improved our distribution channels. We are improving from a lower base, but if you look at our commercial activity, we review this all the time. Ongoing revenue commissions, SIM card prices, CIB, marketing incentives, all these things we review all the time, and we continuously adjust at different channels to give us, through our channel economics program, the most efficient way to attract and retain customers from a prepaid point of view.

Speaker #1: We pay license fees on platforms. We pay license fees on all sorts of technology assets that we have. So, it's not in our interest to connect subscribers that have no value or very short tenure.

Speaker #1: We have improved our distribution channels. We are improving from a lower base. But if you look at our commercial activity, we review this all the time.

Speaker #1: So, ongoing revenue commissions, SIM card prices, CIB marketing incentives—all these things we review all the time. And we continuously adjust, at different channels, to give us, through our channel economics program, the most efficient way to attract and retain customers from a prepaid point of view.

Speaker #1: So we're quite comfortable that there is room in the market. Is it a zero-sum game? It might be. It might be a zero-sum game, which means if someone gains, someone else loses.

Jorge Mendes: We are quite comfortable that there is room in the market. Is it a zero-sum game? It might be. It might be a zero-sum game, which means if someone gains, someone else loses. But there are subscribers out there nonetheless that we believe are a fundamental growth opportunity for Cell C. I think that is intact in terms of growth from a prepaid perspective, and we are quite comfortable where the ARPUs are. Is it possible that the ARPUs will decline a little bit as your base grows? I think that is quite normal, but it is more around total revenue, total subscribers. We look at segmentation everywhere. Whilst we are kind of youth and mass focused, we have got a segmentation model that allows us to go, and it is very intentional and deliberate to go after various customers. Prepaid customers are not low-value customers. It is just a payment method.

Speaker #1: But there are subscribers out there, nonetheless, that we believe are a fundamental growth opportunity for Cell C. So I think that is intact in terms of growth from a prepaid perspective.

Speaker #1: And we're quite comfortable where the RPUs are. Is it possible that the RPUs will decline a little bit as your base grows? I think that's quite normal.

Speaker #1: But it's more around total revenue and total subscribers. We look at segmentation everywhere. So, while we are kind of youth and mass focused, we've got a segmentation model that allows us to go—and it's very intentional and deliberate—to go after various customers.

Jorge Mendes: Whilst we are kind of youth and mass focused, we have got a segmentation model that allows us to go, and it is very intentional and deliberate to go after various customers. Prepaid customers are not low-value customers. It is just a payment method. We have very high-value revenue-generating prepaid customers. It is just an option on how to maintain their spend or to manage their spend. We go I have a prepaid number, too, by the way. I would probably consider myself a high-value customer. We go after high-value segments, youth, mass. In that space, we look at all these segments very deliberately, and we have an incredible team that has done base management for years, and we have built incredible capabilities to make sure that we continue to enhance and improve that.

Speaker #1: So prepaid customers are not low-value customers; it's just a payment method. We are very high-value, revenue-generating prepaid customers. It's just an option for how to maintain or manage their spend.

Jorge Mendes: We have very high-value revenue-generating prepaid customers. It is just an option on how to maintain their spend or to manage their spend. We go I have a prepaid number, too, by the way. I would probably consider myself a high-value customer. We go after high-value segments, youth, mass. In that space, we look at all these segments very deliberately, and we have an incredible team that has done base management for years, and we have built incredible capabilities to make sure that we continue to enhance and improve that.

Speaker #1: So, we go—I have a prepaid number too, by the way. I would probably consider myself a high-value customer. And so, we go after high-value segments: youth, mass. In that space, we look at all these segments very deliberately, and we have an incredible team that has done base management for years.

Speaker #1: And we've built incredible capabilities to make sure that we continue to enhance and improve that.

Speaker #3: Thank you. And perhaps one for Elle. Is this now a sustainable base as in the Q2— the second half number— that we can then base our forecast on moving forward?

Vuyo Kupiso: Thank you. And perhaps one for El. Is this now a sustainable base as in the Q2, the H2 number that we can then base our forecast of moving forward? It is a very key concern for me that it has been a tale of two halves, as you said in your results release.

Viwe Kupiso: Thank you. And perhaps one for El. Is this now a sustainable base as in the Q2, the H2 number that we can then base our forecast of moving forward? It is a very key concern for me that it has been a tale of two halves, as you said in your results release. But moving forward, I would like a bit more confidence in the H2 numbers such that we can forecast and move forward.

Speaker #3: It's a very key concern for me that it's been a tale of two halves, as you said in your results release. But moving forward, I'd like a bit more confidence in the second-half numbers so that we can forecast and move forward.

Jorge Mendes: But moving forward, I would like a bit more confidence in the H2 numbers such that we can forecast and move forward.

Speaker #2: Yeah, thanks for that. Thanks for that, viewer. Yes, your second half is more reflective of run rates. Earlier, I mentioned that if you actually normalize your first half properly and include it—CEC—the way it was supposed to, you'd have ended up around $1.4 billion.

[Company Representative] (Cell C): Yeah.

El Tshegofatso Kope: Yeah.

[Company Representative] (Cell C): Confirmation.

Viwe Kupiso: Confirmation.

[Company Representative] (Cell C): Thanks for that, Vuyie. Yes. Your H2 is more reflective of run rate. Earlier I mentioned that if you actually normalize your H1 properly and included Comm Equipment Company the way it was supposed to, you would have ended up around ZAR 1.4 billion. You are at ZAR 1.5 billion in the H2. So it is the base, it is run rate. There would be things that might happen that we do not know the value of. We do not know today what RICA might do or the stricter enforcement of RICA might do. We do not know what End-User might look like. We have estimated it based on what our business looks like. Hence from a guidance perspective, when Jorge Mendes was presenting, he did say for EBITDA, although if you did a run rate view right now, you would have said this year's view of EBITDA is about ZAR 2.9 billion.

El Tshegofatso Kope: Thanks for that, Vuyie. Yes. Your H2 is more reflective of run rate. Earlier I mentioned that if you actually normalize your H1 properly and included Comm Equipment Company the way it was supposed to, you would have ended up around ZAR 1.4 billion. You are at ZAR 1.5 billion in the H2. So it is the base, it is run rate. There would be things that might happen that we do not know the value of. We do not know today what RICA might do or the stricter enforcement of RICA might do. We do not know what End-User might look like. We have estimated it based on what our business looks like.

Speaker #2: You're at 1.5 in the second half, so it is the best—it is run rate. There would be things that might happen that we don't know the value of.

Speaker #2: We don't know today what RICA might do, or what stricter enforcement of RICA might do. We don't know what the end user might look like.

Speaker #2: We've estimated it based on what our business looks like. And hence, from a guidance perspective, when George was presenting, he did say for EBITDA, although if you did a run-rate view right now, you would have said this year's view of EBITDA is about 2.9.

El Tshegofatso Kope: Hence from a guidance perspective, when Jorge Mendes was presenting, he did say for EBITDA, although if you did a run rate view right now, you would have said this year's view of EBITDA is about ZAR 2.9 billion. We have reflected ZAR 2.7 billion, ZAR 2.9 billion. We are still tempering that down to about ZAR 3 billion to then take into effect some of these things that might happen. But if they do not-

Speaker #2: We've reflected $2.7 billion, $2.9 billion. We are still tempering that down to about $3 billion to then take into effect some of these things that might happen.

[Company Representative] (Cell C): We have reflected ZAR 2.7 billion, ZAR 2.9 billion. We are still tempering that down to about ZAR 3 billion to then take into effect some of these things that might happen. But if they do not-

Speaker #2: But if they don't, we are chasing ourselves.

Jorge Mendes: Yeah

Jorge Mendes: Yeah.

[Company Representative] (Cell C): we are chasing it.

El Tshegofatso Kope: we are chasing it.

Speaker #1: Viewer, the short answer is there's a strong level of confidence in our performance in the second half. It's obvious that we have a year of two halves because of the old Cell C without CC and the new.

Jorge Mendes: Vuyie, the short answer is there is a strong level of confidence in our performance in H2. It is obvious that we have a year of two halves because of the old Cell C without CC and the new, and you have got some transactions in the middle, which you have to account for. But underlying performance of the H2 is reflective of the business. So the headwinds that El refers to is market.

Speaker #1: And you've got some transactions in the middle which you have to account for, but the underlying performance of the second half is reflective of the business.

Speaker #1: So the headwinds that Elle refers to are market, RICA, end user subscriber chart, spectrum auctions going forward, the ECA amendment bill—all of these are impacts for everyone.

[Company Representative] (Cell C): Yeah.

El Tshegofatso Kope: Yeah.

Jorge Mendes: RICA, End-User and Subscriber Service Charter, spectrum auctions going forward, the Electronic Communications Amendment Bill, all of these are impacts for everyone. We have been prudent in how we factor it in from a guidance point of view, but underlying operational performance H2 is exactly expected to continue.

Speaker #1: We've been prudent in how we factored in, from a guidance point of view. But underlying operational performance in the second half is expected to continue exactly as planned.

Speaker #3: How's the team? I literally call you Nate Bank. Just two questions from me. The first one is, the wholesale and MVNO business in particular looks like an attractive revenue and profit pool.

Lisa Pekoba: How is the team? Lisa Pekoba, Nedbank.

[Analyst] (Nedbank): How is the team? Lisa Pekoba, Nedbank.

[Company Representative] (Cell C): Hi, Lisa.

El Tshegofatso Kope: Hi, Lisa.

Lisa Pekoba: Just two questions from me. The first one is, the wholesale and MVNO business in particular looks like an attractive revenue and profit pool. It definitely feels like it is something that is going to keep growing and become more meaningfully attractive. It is not clear to me that it is an exclusive profit pool. My sense is, what are your views on how you are going to defend that profit pool from potential competition?

[Analyst] (Nedbank): Just two questions from me. The first one is, the wholesale and MVNO business in particular looks like an attractive revenue and profit pool. It definitely feels like it is something that is going to keep growing and become more meaningfully attractive. It is not clear to me that it is an exclusive profit pool. My sense is, what are your views on how you are going to defend that profit pool from potential competition?

Speaker #3: It definitely feels like it's something that's going to keep growing and become more meaningfully attractive. It's not clear to me that it's an exclusive profit pool.

Speaker #3: My sense is, and what are your views, and how are you going to defend that profit pool from potential competition? And then, just to add to that, what's your view of that relationship as your partners obviously become more meaningful in your life as well?

Jorge Mendes: Yeah.

Lisa Pekoba: Then just added onto that, what is your view then of that relationship as your partners obviously become more meaningful in your life as well?

[Analyst] (Nedbank): Then just added onto that, what is your view then of that relationship as your partners obviously become more meaningful in your life as well?

Speaker #1: Yeah, thanks very much. That's a really good question. I'm going to answer it in two halves. The first is, no line of business is a profit pool that's exclusive to anyone.

Jorge Mendes: Yeah. Thanks very much. It is a really good question. I am going to answer it in two halves. The first is no line of business is a profit pool that is exclusive to anyone. I think a prepaid customer has the choice to go anywhere. A postpaid customer has the choice to go anywhere. They have got some obligations in terms of handset financing, then they move. Enterprise customer has the option to go anywhere. An MVNO customer would behave no differently. Are all these agreements exclusive, et cetera? We believe in the following strategy, which is we are giving our MVNO partners like we do with everyone, but let us go specific to the question, the highest probability of success. We are deliberate and intentional about our MVNO strategy. We have said that. No one else has been there, otherwise that would have played out already in the market.

Speaker #1: I think a prepaid customer has the choice to go anywhere. A postpaid customer has the choice to go anywhere; they've got some obligations in terms of handset financing.

Speaker #1: Then they move. Enterprise customers have the option to go anywhere, and MVNO customers would behave no differently. So, all these agreements—exclusive, et cetera—we believe in the following strategy, which is: we are giving our MVNO partners, like we do with everyone, but let's go specific to the question.

Jorge Mendes: We believe in the following strategy, which is we are giving our MVNO partners like we do with everyone, but let us go specific to the question, the highest probability of success. We are deliberate and intentional about our MVNO strategy. We have said that. No one else has been there, otherwise that would have played out already in the market.

Speaker #1: The highest probability of success. We are deliberate and intentional about our MVNO strategy; we have said that. No one else has been there. Otherwise, that would have played out already in the market.

Speaker #1: We believe that the partnership model we have is a very good one, where we are very deliberate about ensuring their success. And that means not competing with their lines of business.

Jorge Mendes: We believe that the partnership model that we have is a very good one, where we are very deliberate about ensuring their success. That means not competing with their lines of business. That means deep integration. That means co-creation of product sets and so on, that allow these MVNO partners the highest level of success. The reason behind that is Cell C's position is quite unique. If you take our market share size, it stands to reason that our current total market share on subscribers, that percentage would move to an MVNO subscriber or to an MVNO customer base. The balance, which is by far the biggest amount, comes from everyone else.

Speaker #1: That means deep integration. That means co-creation of product sets and so on that allow these MVNO partners the highest level of success. And the reason behind that is Cell C's position is quite unique.

Speaker #1: If you take our market share size, it stands to reason that our current total market share on subscribers—that percentage would move to an MVNO subscriber or to an MVNO customer base.

Speaker #1: The balance, which is by far the biggest amount, comes from everyone else. So, if you look at a contribution margin, when we consume voice and data services for Cell C customers directly, we add commissions, marketing fees, SIM card costs, et cetera, and we get to a contribution margin of X.

Jorge Mendes: If you look at a contribution margin, when we consume voice and data services for Cell C customers directly, we add commissions, marketing fees, SIM card costs, et cetera, and we get to a contribution margin of X. Largely, that's the same with our MVNO partners because they have that cost already sunk in their business, and they don't have to add these costs. The structure of how we work collectively is what gives this an incredible opportunity for success. Do you want long-term agreements and exclusivity? Yes. Does that ensure that you'll never lose a partner? No. That's how unfortunately this works. We do believe that we've got very strong relationships. We believe we work very well with our partners. We're very grateful for them. We take them very seriously. We treat them very professionally and responsibly.

Speaker #1: Largely, that's the same with our MVNO partners, because they have that cost already sunk in their business, and they don't have to add these costs.

Speaker #1: So, the structure of how we work collectively is what gives us an incredible opportunity for success. So, do you want long-term agreements and exclusivity?

Speaker #1: Yes. Does that ensure that you will never lose a partner? No. That's how, unfortunately, this works. So we do believe that we've got very strong relationships.

Speaker #1: We believe we work very well with our partners. We're very grateful for them. We take them very seriously. We treat them very professionally and responsibly.

Jorge Mendes: We believe we work very well with our partners. We're very grateful for them. We take them very seriously. We treat them very professionally and responsibly. It's their brand, and so we're very considerate about that, and we believe we've given with those ingredients, the very best possibility of success for the MVNO partners and ourselves over the long term. But it's a fiercely competitive market.

Speaker #1: It's their brand, and so we're very considerate about that. We believe we've given, with those ingredients, the very best possibility of success for the MVNO partners and ourselves over the long term.

Jorge Mendes: It's their brand, and so we're very considerate about that, and we believe we've given with those ingredients, the very best possibility of success for the MVNO partners and ourselves over the long term. But it's a fiercely competitive market.

Speaker #1: But it's a fiercely competitive market.

Speaker #3: Thanks. Then my second question—yeah, it definitely looks like the operational and now financial momentum is coming through. You're also guiding quite reasonably as well.

Lisa Pekoba: Thanks. Then my second question. Yeah, it definitely looks like the operational and now financial momentum is coming through. You're also guiding quite reasonably as well. My core issue is, if I go from a headline perspective down to the per share, and particularly the one-offs, it definitely seems like there's a headwind there. It seems like there's another bigger one coming going forward. Have you maybe just thought about how impactful that's going to be, and when can we expect that to sort of wash through?

[Analyst] (Nedbank): Thanks. Then my second question. Yeah, it definitely looks like the operational and now financial momentum is coming through. You're also guiding quite reasonably as well. My core issue is, if I go from a headline perspective down to the per share, and particularly the one-offs, it definitely seems like there's a headwind there. It seems like there's another bigger one coming going forward. Have you maybe just thought about how impactful that's going to be, and when can we expect that to sort of wash through?

Speaker #3: My core issue is, if I go from a headline perspective down to the per-share, and particularly the way now, it definitely seems like there's a headwind there.

Speaker #3: It seems like there's another, bigger one coming going forward. Have you maybe just thought about how impactful that's going to be? And when can we expect that to sort of wash through?

Speaker #2: So Lisa, I'll try to take that, and I'm going to try to answer you. I'm not 100% sure I am, but I'm going to try.

[Company Representative] (Cell C): Lisa, I will try take that and I am going to try answer you. Not 100% sure I am, but I am going to try. Firstly, if you look at the earnings numbers that we are reporting right now, we are reporting them on an as reported basis. I am so sorry, this light is very bright.

El Tshegofatso Kope: Lisa, I will try take that and I am going to try answer you. Not 100% sure I am, but I am going to try. Firstly, if you look at the earnings numbers that we are reporting right now, we are reporting them on an as reported basis. I am so sorry, this light is very bright.

Speaker #2: Firstly, if you look at the earnings numbers that we're reporting right now, we're reporting them on an as-reported basis. I'm so sorry—the slide is very bright.

Speaker #1: Yeah, come over this way.

Jorge Mendes: Yes. Come over this way.

Speaker #2: So, I'm going to move this way because I'm getting blinded. We're reporting right now on an as-reported basis, which would include all the one-offs in this year.

[Company Representative] (Cell C): I am going to move this way because I am getting blind. We are reporting right now on an as reported basis, which would include all the one-offs in this year. This year's earnings number looks insanely amazing. But it is actually not true. It is not even physical money. Hence, we were trying to show the H2 of the year's more realistic headline earnings. The thing that will literally normalize it, in essence, will be your number of shares. If you are calculating it on 177 million this year, and next year it is 340, even if your earnings are better, that number looks like it is diluted. There is a normalization we could do on that, but that is why we were explicit about how we are calculating it. In the longer run, your earnings will improve, which is the conversation we were just having.

El Tshegofatso Kope: I am going to move this way because I am getting blind. We are reporting right now on an as reported basis, which would include all the one-offs in this year. This year's earnings number looks insanely amazing. But it is actually not true. It is not even physical money. Hence, we were trying to show the H2 of the year's more realistic headline earnings. The thing that will literally normalize it, in essence, will be your number of shares. If you are calculating it on 177 million this year, and next year it is 340, even if your earnings are better, that number looks like it is diluted. There is a normalization we could do on that, but that is why we were explicit about how we are calculating it. In the longer run, your earnings will improve, which is the conversation we were just having.

Speaker #2: So this year's earnings number looks insanely amazing, but it's actually not true. It's not even physical money, and hence we were trying to show the second half of the year's more realistic headline earnings.

Speaker #2: The thing that will literally normalize it, in essence, will be your number of shares. If you're calculating it on 177 million this year, and next year it's 340 million.

Speaker #2: Even if your earnings are better, that number looks like it's diluted. So there is a normalization we could do on that, but that's why we were explicit about how we're calculating it.

Speaker #2: In the long run, your earnings will improve. And hence—this is a conversation we were just having—Louise gave the question on efficiency on EBITDA.

[Company Representative] (Cell C): Louise gave the question on efficiency on EBITDA. We are expecting EBITDA to continue to perform. I do not necessarily see those as headwinds that are coming for earnings. As we are as a business from our past, from a cash perspective, we are already asset light, so your CapEx is constrained. Your biggest regulatory fees that would come would be renewing license, which everybody will have to do, but we will not have a massive tax debt for a while. So that will help from a cash maintenance perspective. Those elements are going to serve us in the long run. But from a normalization, you will normalize that number for earnings, but it does not necessarily mean your core earnings, the money that you are making, is reducing. You are just going to normalize the number for your denominator, which is your share numbers, because that is currently all over the place.

El Tshegofatso Kope: Louise gave the question on efficiency on EBITDA. We are expecting EBITDA to continue to perform. I do not necessarily see those as headwinds that are coming for earnings. As we are as a business from our past, from a cash perspective, we are already asset light, so your CapEx is constrained. Your biggest regulatory fees that would come would be renewing license, which everybody will have to do, but we will not have a massive tax debt for a while. So that will help from a cash maintenance perspective. Those elements are going to serve us in the long run. But from a normalization, you will normalize that number for earnings, but it does not necessarily mean your core earnings, the money that you are making, is reducing.

Speaker #2: We're expecting EBITDA to continue to perform, so I don't necessarily see those as headwinds that are coming for earnings. And as we are as a business, from our past, from a cash perspective, we're already asset-light.

Speaker #2: So your capex is constrained. Your biggest regulatory fees that would come would be renewing the license, which everybody will have to do. But we won't have a massive tax debt.

Speaker #2: So, for a while, that will help from a cash maintenance perspective. Those elements are going to serve us in the long run.

Speaker #2: But from a normalization standpoint, you'll normalize that number for earnings, but it doesn't necessarily mean your core earnings—the money that you're making—are reducing.

Speaker #2: You're just going to normalize the number for your asset, your denominator, which is your share numbers, because that's currently all over the place. Next year's number will be your most—and I'll call it—accurate number.

El Tshegofatso Kope: You are just going to normalize the number for your denominator, which is your share numbers, because that is currently all over the place. Next year's number will be your most, and I'll call it accurate number. It'll be the first time you actually see a full year from a same perspective on an earnings perspective, which is not what you're seeing now.

[Company Representative] (Cell C): Next year's number will be your most, and I'll call it accurate number. It'll be the first time you actually see a full year from a same perspective on an earnings perspective, which is not what you're seeing now.

Speaker #2: It'll be the first time you actually see a full year from the same perspective, from an earnings perspective, which is not what you're seeing now.

Speaker #3: Thanks, all.

Jorge Mendes: Thanks, Al.

[Analyst] (Nedbank): Thanks, Al.

Speaker #4: I'm just going to maybe save some time, too.

[Company Representative] (Cell C): Just to maybe save some time. Quite a few questions on the webcast. Five or six questions on the same topic.

[Analyst] (Nedbank): Just to maybe save some time. Quite a few questions on the webcast. Five or six questions on the same topic.

Speaker #5: There are quite a few questions about web costs—five or six questions on the same topic. If you could just talk a little bit about the agreement with MTN, particularly given the comments they've made about pricing increases, contract renewals, et cetera.

Jorge Mendes: Okay.

[Company Representative] (Cell C): Oh.

El Tshegofatso Kope: Oh.

[Company Representative] (Cell C): If you can just talk a little bit about the agreement with MTN, particularly given the comments that they've said about pricing increases, contract renewals, et cetera. Maybe just update us on that, please, George.

[Analyst] (Nedbank): If you can just talk a little bit about the agreement with MTN, particularly given the comments that they've said about pricing increases, contract renewals, et cetera. Maybe just update us on that, please, George.

Speaker #5: Maybe just update us on that, please, George.

Speaker #1: Yeah, sure. So, I mean, I think we clarified this when we went to market in February, and I'll repeat myself: There was no 180-day review period that was triggered last year.

Jorge Mendes: Yeah, sure. I think we clarified this when we went to market in February, and I'll repeat myself. There was no 180-day review period that was triggered last year. We clarified that in February. Our contract remains commercially as it was from the get-go, so that remains intact. Agreements and contracts of this nature are complex. They're lengthy. They've got strategic nature behind it, so it's normal, which I've said before, to have discussions from time to time. We are actually now in one of those discussions, and if anything changes, then we'll notify the market. If anything material changes. We are under NDA. There's a lot of confidentiality around these agreements, but I can categorically say that our commercial position remains intact. No commercial changes have taken place. That 180-day review period was not triggered. Everything remains as is.

Speaker #1: We clarified that in February. Our contract remains commercially as it was from the get-go, so that remains intact. Agreements and contracts of this nature are complex.

Speaker #1: They're glancing. They've got strategic nature behind it. So it's normal, which I've said before, to have discussions from time to time. We are actually now in one of those discussions.

Speaker #1: And if anything changes, then we'll notify the market. If anything material changes, we are under NDA. There's a lot of confidentiality around these agreements.

Speaker #1: But I can categorically say that our commercial position remains intact. No commercial changes have taken place. That 180-day review period was not triggered.

Speaker #1: So everything remains as is.

Speaker #5: Thanks. And then another question surrounding data revenues in the second half. So our prepaid voice traffic was down, data traffic was up. So maybe you can unpack a little bit the trends around prepaid data revenues in the second half, particularly.

[Company Representative] (Cell C): Thanks. Another question around data revenues in the H2. Our prepaid voice traffic was down, data traffic was up. Maybe you can unpack a little bit the trends around prepaid data revenues in the H2 particularly. Also, there's some comments about, we said that our prepaid gross revenues are growing double digits and what we are doing may be different to the competitors.

[Analyst] (Nedbank): Thanks. Another question around data revenues in the H2. Our prepaid voice traffic was down, data traffic was up. Maybe you can unpack a little bit the trends around prepaid data revenues in the H2 particularly. Also, there's some comments about, we said that our prepaid gross revenues are growing double digits and what we are doing may be different to the competitors.

Speaker #5: And also, there were some comments about what we said regarding our prepaid gross revenues growing at double digits, and perhaps what we're doing differently compared to competitors.

Speaker #1: Yeah, so I mean, I'll take it and then Al can jump in as well. I think our total prepaid performance has been impacted by underlying genuine, real performance, which is the stuff I've spoken about.

Jorge Mendes: Yeah. I'll take, and then Al can jump in as well. I think our total prepaid performance has been impacted by underlying genuine real performance, which is the stuff I've spoken, so I don't want to repeat too much, but I'll highlight it super quickly. It's enhanced distribution channels, commercial structures, CVM capability, more targeted approach to the segmentation. All of these things yield our brand positioning is stronger than what it was 2 years ago, certainly a year ago. Our network quality, all of these are underlying factors that contribute to performance. Our credibility, the brand trust, all of these impact the prepaid revenue performance. So we've got that as underlying. Then we've got the benefit of the air time discounts that have kind of normalized from the historical changes, and that comes through quite nicely.

Speaker #1: So, I don't want to repeat too much, but I'll highlight it super quickly. It's enhanced distribution channels, commercial structures, CVM capability, and a more targeted approach to the segmentation.

Speaker #1: So, all of these things mean our brand positioning is stronger than it was two years ago, certainly stronger than a year ago. Our network quality, and all of these, are underlying factors that contribute to performance.

Speaker #1: Our credibility, the brand trust — all of these impact the prepaid revenue performance. So, we've got that as underlying. Then, we've got the benefit of the airtime discounts that have kind of normalized from the historical changes.

Speaker #1: And that comes through quite nicely. We intend to maintain that, so that is not going to run away at all. If anything, there could be slight improvements, but that will be maintained on the airtime discount channels.

Jorge Mendes: We intend to maintain that, so that is not going to run away at all. If anything, there could be slight improvements, but that will be maintained on the air time discount channels or margin. I think it's a combination. It's difficult to say all of our growth has now come from this channel or this product. There are data-led strategies, but they're both. It's a combo of voice and data because we're seeing more and more customers are doing voice-over data calling, whether that's WhatsApp, et cetera. So those propositions remain critical to making sure that customers have the very best value from a Cell C. We don't think that will change. We're building some momentum, and as I said, we're in a fiercely competitive environment with lots of changes happening all the time. RICA will be tightened up.

Speaker #1: Or margin. So I think it's a combination. It's difficult to say all of our growth has now come from this channel or this product.

Speaker #1: There are data-led strategies, but they're both. It's a combo of voice and data because we're seeing more and more customers doing voice-over-data calling, whether that's WhatsApp, et cetera.

Speaker #1: So those propositions remain critical to making sure that customers have the very best value from a sales fee, so we don't think that will change.

Speaker #1: We're building some momentum. And so, as I said, we're in a fiercely competitive environment, with lots of changes happening all the time. Rigor will be tightened up.

Speaker #1: End user subscriber churn is less than six months in January '27. That'll have an impact on data rollover and sharing on bundles above seven days.

Jorge Mendes: End-User and Subscriber Service Charter is less than six months in 27 January. That will have an impact on data rollover and sharing on bundles above seven days. Below that, it is not. A lot of moving parts. We have tried to position ourselves to be ready for those changes. We are quite comfortable with the performance. There is no slacking down on the quarter, if you like, in terms of performance.

Speaker #1: Below that, it's not. So, a lot of moving parts. We've tried to position ourselves to be ready for those changes, but we're quite comfortable with the performance.

Speaker #1: There's no slacking down on the quarter, if you like, in terms of performance.

Speaker #5: And then a last question. There's a lot more, which we won't have time for all of them, but just— we had previously guided around dividends from the 2027 financial year.

[Company Representative] (Cell C): The last question, there is a lot more, but we will not have time for them all. We had previously guided around dividends from the 2027 financial year. Is that guidance and expectations still intact?

[Analyst] (Nedbank): The last question, there is a lot more, but we will not have time for them all. We had previously guided around dividends from the 2027 financial year. Is that guidance and expectations still intact?

Speaker #5: Is that sort of guidance and those expectations still intact?

Speaker #1: Yes, very much so. We have announced today that no dividends will be paid this time. That's in line with what we had signaled to the market and been very clear about in the lead-up to the listing.

Jorge Mendes: Yeah, very much so. We have announced today that no dividends will be paid this time. That is in line with what we had signaled to the market and been very clear in the listing buildup. Our policy remains intact. That is the 30% to 50% on free cash. That will go through board approval and subject to that. That remains still very much intact.

Speaker #1: Our policy remains intact. That's the 30 to 50 percent on free cash. That will go through board approval, and is subject to that. But that remains still very much intact.

Speaker #5: If there are any last questions from anyone in the audience, I think otherwise we are probably out of time and need to wrap up.

[Company Representative] (Cell C): If there are any last questions from anyone in the audience, I think otherwise, we are probably out of time, and we need to wrap up.

[Analyst] (Nedbank): If there are any last questions from anyone in the audience, I think otherwise, we are probably out of time, and we need to wrap up.

Speaker #1: Thank you. Just a quick thank you from Al and myself, and the ExCo, to all of our shareholders, our board members, our partners, our staff, and in particular, our customers.

Jorge Mendes: Thank you. Just a quick thank you from Al and myself and the ExCo to all of our shareholders, our board members, our partners, our staff, and in particular, our customers. It has been an incredible year. It has been a very difficult year in terms of transactions, two halves, but underlying performance has been really good, and we really are very appreciative of all the support, so thank you very much.

Speaker #1: It's been an incredible year. It's been a very difficult year in terms of transactions—two halves. But underlying performance has been really good, and we really are very appreciative of all the support.

Speaker #1: So thank you very much.

Speaker #5: Thank you.

[Company Representative] (Cell C): Thank you.

[Analyst] (Nedbank): Thank you.

[Company Representative] (Cell C): Thank you.

El Tshegofatso Kope: Thank you.

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