Pentanet (ASX: 5GG) – Perth-based ISP & cloud gaming provider
COMPANY SCOREBOARD
| Pro Plus | Pro | Con Plus | Con |
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ABOUT COMPANY
Pentanet (5GG) (https://pentanet.com.au/), founded in 2017, is a Perth-based licensed telecommunications carrier and internet service provider, delivering high-bandwidth internet services via its own fixed-wireless network and other fixed-line networks. In 2019, the company entered the esports and cloud gaming market via its Alliance Partner Agreement with NVIDIA.
CAPITAL STRUCTURE
| ASX Code | Share Price | Shares | Option (In) | Market Cap | Cash/Asset ($m) |
| 5GG | 0.056 | 373727213 | 0 | 20928723.928 | 6.8/23 |
| Holders No | Top 20 (Cur) | Top 20 (Pre) | Director Hold | Performance Right | Note |
| 4398 | 53.12% | 51.47% | 18.83% | 4965624 | last raise $6.1m@8.3c |
Two executive directors are brothers.
BUSINESS
Below is the company’s past five years performance:
| 5GG | 2023 | 2022 | 2021 | 2020 | 2019 |
| Operation Revenue | 19733 | 16829 | 10917 | ||
| Cost of Sale | -11265 | -9461 | -6175 | ||
| Gross Revenue | 8468 | 7368 | 4742 | 0 | 0 |
| Gross Margin | 0.4291 | 0.4378 | 0.4344 | 0 | 0 |
| Overheads | -12805 | -12066 | -13198 | ||
| Fixed Overheads | |||||
| Variable Overheads | |||||
| Total Operation Expense | -12805 | -12066 | -13198 | 0 | 0 |
| Operation Profit | -4337 | -4698 | -8456 | 0 | 0 |
| Other Revenue | 403 | 300 | 166 | ||
| Interest Expense | -367 | -146 | -3899 | ||
| D&A | -4088 | -3381 | -1508 | ||
| Income Tax | |||||
| Net Profit | -8389 | -7925 | -13697 | 0 | 0 |
| NOTES | $1m in gaming revenue | $0.7m in gaming revenue | $4.5m share payment to brothers |
The company was only founded in 2017, spent $5m in infrastructure, and attracted less than 1% of Perth-based residents to its fixed-wireless network.
The cloud gaming division will be the main game. It currently has some 340,000 registered users, growing at snail pace.
SUMMARY
The ISP part of the business is perhaps worth $25m tops (i.e. 1.5x revenue). The company only made $700k from online gaming in FY22. It takes another 2 quarters to observe how many paid subscribers it has.