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Highlights
- EBITDA Positive Milestone: Pentanet achieved a $1 million quarter-on-quarter (QoQ) improvement, turning a Q1 EBITDA loss of $0.4 million into a positive $0.6 million in Q2 FY25.
- 5G Expansion Progress: Subscriber base increased 17% QoQ, with plans to double network coverage in FY25 and enhance 5G offerings.
- Gaming Revenue Boom: Cloud gaming revenue rose 31% year-on-year (YoY) and 27% QoQ, with key subscriber engagement driven by premium gaming experiences.
Pentanet Limited (ASX:5GG) surged 66.7% in Wednesday trading following a significant announcement detailing the company’s positive EBITDA milestone and strategic progress in 5G expansion and cloud gaming.
The Perth-based telecommunications and cloud gaming company reported a $1 million QoQ EBITDA improvement, shifting from a Q1 loss of $0.4 million to a $0.6 million profit in Q2 FY25. This marks a major financial milestone for the company as it continues to focus on sustainable growth across its 5G and gaming divisions.
Financial and Operational Performance
Pentanet’s consolidated revenue climbed 7% year-on-year to $11.1 million for H1 FY25, with a 6% QoQ rise to $5.7 million. Gross profit also showed significant growth, up 6% YoY to $5.2 million and 17% QoQ to $2.8 million. Additionally, operational efficiencies contributed to a reduction in churn rates, with total churn declining to 1.2% in Q2 FY25, compared to 1.3% in the previous quarter.
Subscriber growth has been a highlight, with 5G subscribers increasing by 17% QoQ to 709 customers. Average revenue per user (ARPU) rose to $94, driven by higher-speed plans, further bolstering the company’s revenue base.
Pentanet’s 5G expansion strategy remains a central focus, with 14 towers already upgraded and plans to complete five additional upgrades in H2 FY25. The company aims to double its 5G network coverage, creating a foundation for launching a competitive ultrafast on-net offering.
To support this growth, Pentanet secured 25 5G base stations and 423 customer premise equipment (CPE) units through a stock swap arrangement with its primary supplier. This innovative approach significantly reduced capital expenditure, ensuring resources remain focused on network expansion.
Gaming Growth and GeForce NOW Expansion
Pentanet’s GeForce NOW cloud gaming platform delivered stellar results in Q2 FY25, achieving a 31% YoY and 27% QoQ revenue increase to $1.1 million. Optimized NVIDIA Cloud GPU usage improved service delivery while reducing costs. Key initiatives, such as mid-quarter pricing adjustments and the introduction of loyalty incentives, further boosted profitability.
Subscriber engagement in premium gaming tiers surged, with overall paid memberships rising by 12% QoQ. The platform also capitalized on high-profile game launches, including Path of Exile 2 and Call of Duty: Modern Warfare III, which drew strong activity from Ultimate plan subscribers.
GeForce NOW’s subscriber base now exceeds 670,000 members, with ongoing library expansions and targeted campaigns, such as the "CloudGG Pioneer" initiative, driving retention and growth.
