ARC co-CEO Johan van Zyl said Rain has been profitable in 2021 and is set to generate R1 billion in EBITDA (earnings before interest, taxes, depreciation, and amortization) this year.
Speaking to investors, van Zyl said if Rain did not accelerate the rollout of its 5G network, the operator would have been profitable every month of the year.
Instead of going after short-term profits, however, the mobile operator decided to spend more money on its 5G expansion.
“The slow spectrum process provided Rain with an additional runway, and we have taken a decision to forgo short-term profits in preference of a much bigger 5G customer base,” he said.
The benefit of increased investment in its 5G network was so significant that Rain went on a funding round approved by shareholders.
Van Zyl said the tremendous upside of the additional 5G network investment created a unique opportunity for Rain.
Rain has expanded its 5G coverage almost six-fold since rolling out the service some 18 months ago.
Rain 5G now covers approximately 3 million households in Pretoria, Johannesburg and Cape Town.
He highlighted that Rain is only around four years old, and the company is already on track to make R1 billion EBITDA this year.
“We already have 20% of the fixed-data market in South Africa. If you include fibre-to-the-home, we have a 14% market share,” he said.