Rain to make more than R1 billion
Rain is on track to exceed its budgeted R1 billion earnings before interest, taxation, depreciation, and amortisation for the year ended February 2022.
This is according to African Rainbow Capital’s interim results for the six months ended 31 December 2021.
“This achievement is viewed as exemplary considering that Rain achieved breakeven only in the last 12 months,” African Rainbow Capital (ARC) stated.
“The company is likely to continue to benefit from developments in its operating environment.”
ARC said that demand for Rain’s products remains strong, even as Covid–19 restrictions are relaxed and employees return to the office.
The rollout of 5G coverage is progressing to include more towns across the country and expanding coverage in metros.
“The Rain valuation for 31 December 2021 has remained largely unchanged,” ARC reported.
ARC now values Rain at R16.643 billion — R286 million more than reported during its annual results for the year ended 30 June 2021.
ARC said the valuation remained largely unchanged due to delays in the spectrum auction and uncertainty regarding the timing, cost, and size of the additional spectrum being allocated to Rain.
“Rain participated in the spectrum auction, which commenced on 8 March 2022,” ARC reported.
“It successfully secured two allocations of 10MHz of the spectrum in the 700 MHz band and for 10 MHz of the 2.6GHz band respectively for R1.15 billion during the Opt-In round of the auction.”
ARC said that after concluding the exclusive first round of the auction, industry regulator Icasa had begun the main-stage spectrum auction, and the outcome was unknown when finalising its report.
“The spectrum allocated to Rain will significantly enhance the company’s competitiveness,” ARC stated.
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