Pentanet Limited (ASX: 5GG), the Perth-based telecommunications disruptor, has turned a significant corner, posting its first-ever EBITDA-positive result in Q2 FY25. The achievement underscores the company’s ongoing strategy to marry cutting-edge 5G expansion with a growing foothold in cloud gaming.
Managing Director Stephen Cornish described the quarter as a pivotal moment:
“We’ve reached a significant turning point, demonstrating the success of our strategic focus. Doubling our 5G coverage this year remains on track, while we continue to optimise and monetise our NVIDIA Cloud platform effectively.”
Stephen Cornish
Pentanet’s financial performance in H1 FY25 points to a well-executed strategy:
Cost discipline was another standout. Pentanet reined in marketing spend while benefiting from operational efficiencies and platform subscription optimisation.
Pentanet is well on its way to doubling its 5G network coverage by the end of FY25, with 14 towers already upgraded and another five planned for the second half. By securing 25 5G base stations and 423 customer premises equipment (CPE) units via a stock swap, the company minimised cash outlays while maximising resources for network expansion.
Subscriber growth in the 5G segment is gaining momentum, with a 17% QoQ increase to 709 customers. The reduced churn rate—now at 1.2% overall and 1.1% on-net—speaks to improved customer retention as coverage expands.
Pentanet is playing the long game, focusing on 5G capacity and coverage before launching a broader marketing campaign. This approach is expected to deliver a competitive on-net offering at scale, boosting subscriber and revenue growth.
Highlights from this division include:
With over 670,000 registered members, the platform’s high-profile game library and enhanced user experience are laying a foundation for long-term profitability.
As Pentanet closes out its strongest quarter yet, the company has its eyes on further milestones. Cash flow from operations turned positive, bolstering its cash balance to $2.2 million at the close of the quarter. With a clear path toward doubling 5G coverage and scaling its cloud gaming business, Pentanet is positioning itself as a dual-threat in telecommunications and digital entertainment.
The combination of ultrafast 5G and exclusive cloud gaming services places Pentanet in a unique market position. Whether it’s connecting homes or powering the future of gaming, the company is proving it knows how to play the long game—and win.
As Cornish succinctly put it, “The sails are set, and the oars are ready.”