Pentanet Posts First Full-Year Positive EBITDA, Boosted by 5G and Gaming Growth
Pentanet Limited has achieved its first full-year positive EBITDA of $1.4 million in FY25, driven by strong growth in its telecommunications and gaming segments, alongside strategic 5G network expansion and technology upgrades.
- First full-year positive EBITDA of $1.4 million
- 8% revenue growth to $22.6 million with 15% gross profit increase
- 5G subscriber base more than doubled to 904
- Gaming ARPU up 42% to $17 following NVIDIA RTX 4080 SuperPOD rollout
- Operating cash flow improved by $2 million year-on-year
A Milestone in Profitability
In a pivotal moment for Pentanet Limited, the Perth-based telecommunications and gaming company has reported its first full-year positive EBITDA, reaching $1.4 million for FY25. This marks a $2.7 million improvement year-on-year, underscoring the company’s successful transition to sustainable profitability. The result reflects disciplined cost management and operational efficiencies across both its core segments.
Revenue and Margin Momentum
Revenue climbed 8% to $22.6 million, supported by organic growth in telecommunications and gaming. Gross profit rose 15% to $11 million, with gross margins improving by three percentage points to 49%. This margin uplift was driven by higher-value gaming plans and a renegotiated supplier agreement in the telco segment, highlighting Pentanet’s ability to enhance profitability while expanding its customer base.
5G Expansion and Subscriber Growth
On the network front, Pentanet expanded its 5G coverage to approximately 25% of its tower footprint through capital-efficient equipment upgrades. The 5G subscriber base more than doubled to 904, contributing to a 2% increase in average revenue per user (ARPU) to $94 in the telecommunications segment. The company added 774 net new telco subscribers in FY25, reflecting targeted marketing efforts and improved customer retention, with churn rates declining to 1.23%.
Gaming Segment Gains Traction
Gaming revenue surged 31% year-on-year, with ARPU soaring 42% to $17, boosted by the rollout of the NVIDIA RTX 4080 SuperPOD technology. This upgrade enabled 4K and high frame rate performance, enhancing user experience and supporting the monetization of the CloudGG platform. Despite retiring lower-tier plans, Pentanet grew its captive gaming audience by 23% to over 725,000 users, with more than 800 million minutes played, signaling strong engagement and monetization potential.
Cash Flow and Financial Position
Operating cash flow improved by $2 million year-on-year, closing FY25 at $1.4 million. The company ended the year with $2.2 million in cash and $6.6 million in unused financing facilities, supplemented by a $2.2 million facility secured post-year-end. This solid financial footing provides Pentanet with flexibility to invest in subscriber growth and network expansion as it enters FY26.
Looking Ahead
Pentanet’s strategic priorities for FY26 include accelerating telco subscriber acquisition through enhanced marketing and competitive offerings, scaling and monetizing the CloudGG gaming platform, and strengthening brand awareness to support long-term profitable growth. The company’s focus on balancing growth with capital efficiency positions it well to capitalize on emerging opportunities in Australia’s digital landscape.
Bottom Line?
Pentanet’s FY25 results lay a strong foundation for growth, but execution on subscriber expansion and gaming monetization will be critical to sustaining momentum.
Questions in the middle?
- How aggressively will Pentanet invest in expanding 5G coverage beyond 25% of its network footprint?
- What strategies will Pentanet deploy to convert CloudGG’s large free user base into paying subscribers?
- How will competitive pressures in the Australian telco and gaming markets impact Pentanet’s ARPU and churn rates moving forward?
