Telecommunications operator Rain has seen increasing demand for its rainOne 4G mobile voice offering in the three months since it launched to the South African market.
This emerged when Rain’s shareholder, African Rainbow Capital (ARC), today published its full-year financial results for the period ended 30 June.
In a statement, ARC says the value of its investment in Rain increased by R881 million from R3 635 million in June 2022, to R4 516 million in June 2023. ARC holds a 20.25% stake in Rain.
It adds this increase in value can largely be attributed to the business progressing beyond the period of significant net-cash outflow, as well as the recent acquisition of additional spectrum.
Despite the tough macro environment putting pressure on the economy and consumers, the outlook for the telecoms sector remains positive after the successful spectrum auction, notes the company.
In May, Rain unveiled its rainOne 4G mobile platform, which includes high-definition voice calls, SMSes, data, national 4G mobile coverage and a 5G home product.
“There has been strong interest in rainOne, and Rain continues to receive positive feedback from new and existing customers,” notes ARC.
“Rain is budgeted to achieve an EBITDA of over R2.5 billion for the year ending February 2024, after taking into account International Financial Reporting Standards 16 adjustments, as is industry practice. The business is tracking well against budgets.”
In last year’s historic spectrum auction, Rain Networks forked out R1.15 billion for two chunks of 10MHz spectrum in the 700MHz band.
Rain, which in 2019 was the first operator to launch a commercial 5G network locally, says it has continued to expand its offering to become one of the largest 5G networks in SA.
“Rain continues its ambitious rollout and marketing strategy to cover more towns across the country and will continue densifying coverage in all major metros,” according to the ARC statement.
Brandon Leigh, Rain founder and CEO, previously told ITWeb the operator’s 5G network covers over eight million households across the country, with the rollout of the additional 700MHz, acquired at the spectrum auction, being well under way.
Despite load-shedding and the threats posed by associated battery theft, Rain has an exciting roadmap for the remainder of the year, he commented.