Africa Analysis forecasts that the South African MVNO market will triple in 4 years and become the growth engine of South Africa’s cellular market. mybroadband.co.za/news/cellu…

Allan Gray believes Cell C’s transformation has made it an attractive investment despite its previously complex structure and troubled past. dailyinvestor.com/investing/…

CAPITEC ( $JSECPI) A good look through with Capitec Connect more than doubling its Net Income contribution to R442m. Capitec Connect runs on CellC s wholesale network. Full FY2026 annual results deck (year ended February 2026). Here’s the complete picture on Capitec Connect specifically: Scale & Active Users 1.5 million clients active in the last 3 months, up 67% year-on-year. Data usage tripled — from 13.4 to 40.5 petabytes, up 202%. ✅ Voice Free Connect-to-Connect calling launched as a new feature. 768 million minutes used, up 150%.✅ Pricing — passing savings back Lower Connect data prices saved clients R330 million in the year. An additional R78 million worth of free data (3 petabytes) was given to clients. ✅ Total client savings across the whole bank attributed to Connect data and Capitec Rewards was R108 million. Revenue contribution VAS and Connect combined generated R6.1 billion, up 38% — and this segment now constitutes 26% of total group headline earnings of R16.8bn, making it the second-largest earnings contributor after Personal Banking (41%). ✅ Net transaction income including VAS and Connect reached R20 billion for the year, up 16%.✅ New product — Connect Devices Launched in FY26: Apple and Samsung devices orderable via the app, delivered in 3 days, payments from R181/month with zero deposit, bundled with 12 months of free 5GB data. No network locking. ✅ Strategic positioning On the forward-looking strategy slide, “Connect and Insure” is explicitly named in the Accelerate bucket — meaning management views it as a near-term growth driver, not a peripheral product.✅ Bottom line: Connect has moved beyond proof-of-concept. 1.5 million active MVNO subscribers, tripling data volumes, a device financing offering, and now 26% of group earnings coming from the Fintech (VAS Connect) segment. The deliberate price-to-grow strategy — sacrificing ARPU for subscriber growth — is textbook for an MVNO using the banking relationship as the acquisition channel. With CellC $JSECCD providing the wholesale vertical and Blue label Unlimited $JSEBLU providing the aggregator vertical ( processing majority of CPIs prepaid and large VAS transactions - this level of Growth ( as above) should be seen as a positive !

$JSEBLU BLU will report later in the month( Interims) - 20th Feb. It’s important to understand that this is the proverbial “ Kitchen Sink” numbers. As such we should see a T/S with a < 20% decrease due to the IPO. Simply put BLU converted old loans and data worth R13bn and sold It in the IPO for R9bn ( lower than what th street expected). Thus, leaving an Impairment of R4bn . This is at least in the current price as the IPO happened in Nov ‘25 and should not come as any surprise on reporting!! For some context , you should know that of the R7,5 bn in data they sold for CellC Equity , BLU only paid R4,4bn ( as CellC gave a Discounts). In addition the R3,75bn Debt to Equity conversion - the real number BLU placed was R1,9bn ( originally) before the rollup over the years! BLU also sold CEC back to CellC so BLUs EBITDA will be as a consequence lower ( what they get back is 50% earnings in CC) . But the offsets here would be the interest cost they no longer have to pay on CEC loan -R230m a year. The new EBItDA I’m suggesting could be around R800-1bn ( from 1,4bn ) pa. If we look at the post IPO in CellC - BLUs “Investment in Assoc” will be weighted at 49,8% of CellC profits / dividends. The bigger picture here is - BLU is likely on a GROUP level to report earnings ( combined with CC) of 120-150c for the year. This will be high FCF returns ( esp in 2027/8). It’s likely to expect there will be pro forma numbers due to consolidation , to de consolidation.A NB reminder here is that the impairment is on the CellC Asset sale , it’s NOT an earnings related impairment!! If anything we expect CellC to come in and beat guidance from the PLS! Now for the good news , this is the extent of it all. We now have two very low cost , low debt operators with Fintech platforms and hence forth crispy clean ( Aug 26) AFS. For BLU it’s now about adding the “ Treasury functionality into the next 6 months an update on their Energy strategy ( where they have just started working with 2-3 Municipalities in SA - High margin biz). Additional kickers come in the form of SPECIAL DIVIDEND ( 80% probability ) mentioned in Oct last year, my best guess is this is 20-30c range ( outside chance 50c). BLU is also owed R1,4bn on the BEE Sale which moves to R1,65bn by year end. This is 18% of their market cap. This gives them HUGE ammo for capital allocation - Buyback and further special dividends ( if BEE holders get bank funding or sell to new BEE investor at year end)We are also very confident they will initiate an interim dividend in Aug with a focus yield over 5% (IMO)! Now, CellC aren’t expected to pay a dividend this year but it’s suggested there’s a chance shareholders can vote to elect one still. The market has them paying 7% in 27 and 9,6% in ‘28. This will be a big contributor to BLU and should see CellC rerate from 6 PE to at least 10 vs peers at 12-15 PE presently. Finally, don’t rule out any corporate action - CellC unbundle could happen in some form ( can’t rule out) or new strategic BEE investors ( I would assume once price moves 20-30% from IPO level). The price has come back to a great accumulate zone - -950c a good risk reward for a high FCF ( Yes - there will be some Operating CF movements for CellC data purchased that we need to strip out) company looking to reward shareholders after years on the back foot. They have it all to prove. To recap BLU s EBITDA is likely 1bn 50% CellC R1,5bn = 2,5bn ( rough numbers ). BLUs mkt cap is R8,5bn 1bn debt -cash this stock is trading on a EV / EBITDA < 4 !! FCF is likely to be 10-15% on a “forward basis”. This is what Gold miners are basically pushing through now after the commodity rallies. You can own a high FCF biz like BLU without the cyclical nature of mining companies! The brothers bought 20m shares in November ( representing 2,4% of co) at roughly 960c \- in Nov 25 , before the closed period! This is Anchors Top pick I’m told!! DYOR!!

$JSEBLU $JSECCD BLU was clearly desperate to get some volume through on the Cell C IPO. There seems to be some appetite for the CC stock in the market already up 15% IPO at 2650c now trading at 3050c I see lots of bids and very few offers at the moment probably going higher

Interesting that Pepkor earns a > 23% ROIC on their FoneYam Cellular Rental Book. - 2m customers now who need financing to get a smartphone. - 12M rental contract despite 25% ECLs - still make an excellent ROIC.