JSE-listed discount retailer Pepkor Holdings’ lead as the distributor of the most prepaid handsets sold in South Africa continues to expand.
In the company’s report for the year ended 30 September, released on Tuesday, Pepkor reported a 17% year-on-year increase in handset sales to 13.5 million units – 9.2 million of which were sold in Pep outlets.
“Pepkor continued to gain market share in cellular, with the group now responsible for eight out of 10 prepaid handset sales in South Africa, according to market research firm GfK, up from 7.5/10 last year,” said Pepkor.
The retailer’s proportion of smartphones, which now account for 65% of all handsets sold compared to 60% the previous year, suggests the number of smartphones across the market is on the rise, too. Pepkor attributed its rise in smartphone penetration to its FoneYam device rental service.
Launched in 2024, FoneYam delivered strong growth for the group in its 2025 financial year, surpassing two million active customers, with average monthly activations of 170 000, up from 120 000 a year ago. “This reflects strong customer demand for affordable smartphone access,” said Pepkor.
Pepkor’s cellular segment achieved 15% year-on-year revenue growth to R2.8-billion. The bulk of these earnings, some R13.8-billion, were from handset and accessory sales, which shot up 21.3% from the previous year.
Strong growth
Airtime, Sim and data sales contributed R9.3-billion to the total, rising 7.8% from R8.6-billion the previous year. Ongoing revenue, mostly from postpaid contracts, grew 9.5% year on year to R2.1-billion.
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The segment’s gross profit of R5.2-billion is 16.8% higher than the 2024 financial year, while operating profit, at R2.8-billion, is 20.6% higher year on year. With FoneYam’s R1.9-billion included, the group’s total cellular revenue comes to R27.1-billion, 21.3% higher than the year before. – © 2025 NewsCentral Media
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