Pentanet Posts First Positive EBITDA as 5G Subscribers Surge 126%

Pentanet’s Financial Turnaround

In FY25, Perth-based telco Pentanet Limited marked a significant milestone by delivering its first full-year positive EBITDA of $1.4 million, a remarkable turnaround from the previous year’s loss. This improvement was underpinned by an 8% rise in consolidated revenue to $22.6 million and a 15% increase in gross profit to $11 million. The company’s disciplined approach to cost management and operational efficiencies played a crucial role in this financial progress.

Robust Growth in 5G Subscribers and Network Expansion

Central to Pentanet’s success was the surge in its telecommunications segment, where subscriber numbers grew by 135%, driven largely by a 126% increase in 5G subscribers to 904. This growth reflects rising demand for high-speed internet plans and was supported by targeted marketing efforts. Notably, Pentanet expanded its 5G coverage to approximately 25% of its tower network through a capital-efficient equipment swap, preserving cash while enhancing network capabilities. The company also improved customer retention, reducing churn to 1.23%, aided by simplified plan options and enhanced customer experience initiatives.

Gaming Segment Emerges as a Profit Contributor

Pentanet’s gaming division, anchored by its GeForce NOW cloud gaming platform, also delivered impressive results. Revenue in this segment grew 31% to $2.4 million, while gross profit soared 242% to $1.4 million, enabling the segment to achieve profitability for the first time. Strategic moves such as removing unprofitable lower-priced plans, upgrading to RTX SuperPODs for enhanced gaming quality, and refining subscription offerings contributed to a 42% increase in average revenue per user (ARPU) to $17. The platform’s captive audience expanded by 23% to over 725,000 players, underscoring its growing appeal.

Financial Position and Future Outlook

Pentanet closed FY25 with a cash balance of $2.2 million and maintained unused financing facilities of $6.6 million. Post-year-end, the company secured an additional $2 million finance facility to support ongoing capital investments, including the final payment for its 5G spectrum licence. Looking ahead, management plans to reinvest a portion of the growing EBITDA into targeted growth initiatives, focusing on accelerating subscriber acquisition, maximising infrastructure utilisation, and enhancing go-to-market capabilities, all while maintaining a disciplined approach to profitability.

With a more competitive product offering and a streamlined gaming platform, Pentanet appears well-positioned to build on its momentum in FY26. However, the company will need to navigate ongoing retail competition and ensure that its growth strategies translate into sustained financial performance.