Shares in Perth-headquartered Pentanet are soaring after the telecommunications firm swung to its first positive EBITDA for a full-year.
Shares in Perth-headquartered Pentanet are soaring after the telecommunications firm swung to its first positive EBITDA for a full-year and maintained steady growth in its subscriber base.
The listed internet services and cloud gaming provider posted an 8 per cent increase in its full-year revenue to $22.6 million. Its gross profit grew 15 per cent to $11 million.
Pentanet achieved its first positive earnings before interest, taxes, depreciation, and amortisation of $1.4 million, compared to a loss of $1.3 million in financial year 2024.
Its telecommunications subscriber base swelled by 135 per cent to 774, which Pentanet said was driven by a 126 per cent uptick in its 5G subscribers to 904. Pentanet reported its subscriber growth remained steady, with churn falling to 1.23 per cent.
Pentanet said it achieved growth in its telecommunications arm despite strong retail competition and through targeting end-of-financial-year campaigns, simplified plan structures and revised NBN pricing.
It also said it built its 5G coverage through a capital-efficient equipment swap to expand its footprint to a quarter of its tower network, it told the market.
The firm’s gaming segment also recorded growth but was partially offset by an 8 per cent drop in paid memberships after retiring its lower-priced and unprofitable plans.
Its cloud gaming guidance grew 23 per cent to 725,000 players, with Pentanet telling the market the platform was now more streamlined and scalable heading into FY26.
Pentanet managing director Stephen Cornish the year marked a milestone in delivering their first full-year positive EBITDA, being a $2.7 million turnaround year-on-year.
“Both Telecommunication and Gaming contributed meaningfully to this turnaround,” Mr Cornish told the market.
Mr Cornish said the gaming segment continued its upward momentum, with subscription revenue supported by higher-value memberships.
“This segment not only achieved profitability for the first time, but also became a growing contributor to the company’s earnings base,” he said.
Pentanet is targeting further growth, with Mr Cornish outing the firm intends to invest in strengthening its market capabilities and leveraging its 5G and other infrastructure.
Shares in Pentanet last changed hands at 2.9 cents a pop, up 16 per cent.
