African Rainbow Capital (ARC) has released its interim results for the six months ended 31 December 2018, which include a valuation of R11.65 billion for new mobile operator Rain.
ARC has a 20% shareholding in Rain, and according to its results announcement it values this shareholding at R2.330 billion.
This translates into a total valuation of R11.65 billion for Rain, which is an increase of R930 million from the R10.72 billion valuation 6 months ago.
ARC is upbeat about Rain’s growth prospects in South Africa as the company transforms into a full-service mobile network operator – focusing on data as a primary offering.
“Revenue growth has been encouraging and significant progress has been made to further improve on network performance and stability,” ARC said.
“Rain is well positioned to become a major player in the 5G data market in the near future.”
Rain CEO Willem Roos told MyBroadband that the company’s strong revenue growth emanated both from its roaming agreement with Vodacom and its own retail efforts.
“We are pleased with the sales of our mobile data offering, and in particular the popularity of the unlimited off-peak offering,” Roos said.