Pentanet Limited’s (ASX: 5GG) significant investments in 5G infrastructure and NVIDIA technology has strengthened their balance sheet. The Company’s strategic focus on cloud computing and telecommunications has positioned Pentanet for future expansion.
In today’s fast-paced digital world, time is a valuable commodity. Every millisecond counts. Pentanet, a Perth based telecommunication and gaming company understands this, delivering lightning-fast internet speeds that empower businesses and individuals to achieve their full potential.
Pentanet’s telecommunications operations, which include an expansion of 5G coverage to 10 towers, has achieved a return on investment of 110%, with a target of over 250%. The strategic focus includes enhancing top-line revenue, testing promotional 5G deals, and refining data collection to boost competitiveness.
In the cloud gaming sector, Pentanet’s partnership with NVIDIA continues to flourish. The Company’s infrastructure supports a growing number of paid users and has joined NVIDIA’s Graphics Delivery Network (GDN) to explore new enterprise revenue opportunities.
The Company aims to optimise capacity, manage oversubscriptions, and introduce commercial and enterprise revenue streams to further boost margins. Despite an EBITDA loss of $86k in Q4 FY24, gaming subscription revenue surged by 114% year-over-year (YoY), with gross profit rising by 195% YoY. CloudGG memberships grew 54% to over 590k and paid subscriptions for CloudGG rose by 79% YoY.
The Company reported a 26% quarter-over-quarter (QoQ) increase in gross telco sales and a 114% YoY rise in gaming subscription revenue, reaching $1.7 million in Q4 FY24. Cloud gaming gross profit surged by 195% YoY, underscoring the success of its strategic investments.
Pentanet’s consolidated revenue for Q4 FY24 amounted to $5.3 million, a slight rise from $5.0 million in the previous quarter. Recurring revenue now constitutes 96% of total revenue. However, gross profit remained steady at $2.4 million, marking a 1% decrease compared to Q4 FY23.
The Company’s financial position, with $5.3 million in cash and $8.9 million in available financing, lays a path for future growth. The telecommunications segment, valued at $31 million and generating $19 million in revenue, indicates significant growth potential, especially as the 5G customer base continues to expand.
Sidra is a Business Writer with The Sentiment
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