5GG - Pentanet Limited

[Dona Ferentes]

HIGHLIGHTS from the Quarterly:
• $2.9 million in quarterly cash receipts from customers, which represents a 112% YoY increase (+19% QoQ)
• 10,993 subscribers at 31 March 2021, up 15% on 31 December 2020. Net new subscriber growth rate up 21% QoQ.
• On-net customers made up 42% of total subscribers. On-net new subscribers up 54%, with 596 in March 2021 quarter compared to 386 in December 2020 quarter.
• 35,224 gamers have claimed their username with GeForce NOW in Australia as at 31 March 2021, confirming strong market interest in NVIDIA’s premier cloud-based game streaming service powered by Pentanet.
• Recurring customers represented 87% of total revenue.
• $0.9 million committed to expansion of the Fixed Wireless network and core network infrastructure during the quarter, and $2.9 million to cloud gaming following an upgrade of the initial purchase order with NVIDIA from 12 RTX servers to 18 servers

Pentanet aims to roll out the Australian GeForce NOW beta product this year, with a commercial launch to follow. The inviteonly beta will be for users who have pre-registered at gfn.pentanet.gg, with Pentanet customers to receive priority access.

 

[Dona Ferentes]

5GG has been successful in securing a 15 year licence for high band 5G spectrum in the 26 GHz April Auction conducted by the Australian Communications and Media Authority (ACMA).

The licence is for 200 MHz of 5G millimetre wave spectrum covering the Greater Perth area in Western Australia including Perth, Mandurah, Bunbury and Margaret River (see Figure 1). The licence fee of $8.0 million will be able to be paid in equal instalments over a 5 year period, with $1.6 million paid in FY 2021 out of existing cash reserves.

Identified as optimal for the delivery of 5G wireless broadband services, the 26 GHz band allows for significantly increased spacing between transmission towers and equipment, providing scope for Pentanet to increase network coverage and backhaul more quickly and at reduced cost.

 

[Country Lad]

Probably more good luck than good management, I had a stop if it closed at or below 82. As it looks right now could be another breakout. Momentum good at the moment but could change as it tends to do late afternoon.

 

[Dona Ferentes]

Probably more good luck than good management, I had a stop if it closed at or below 82. As it looks right now could be another breakout. Momentum good at the moment but could change as it tends to do late afternoon.

and another breakout .... had made it to $1.11 today (for a while)

There is also another bit of spectrum coming up for auction; it looks like Telstra may be constrained in its bidding, which would favour Optus and Vodafone, plus smaller players:

TPG Telecom and Optus may score an advantage at an upcoming spectrum auction after draft rules for the sale included set-aside slots for the pair and competitive limits that would severely restrict Telstra’s influence on the sale. These conditions – revealed by the Australian Communications and Media Authority earlier this week – are largely consistent with submissions from Optus regarding the 850/900MHz spectrum auction slated for November.

This low-band spectrum is particularly important because it is suitable for rolling out new 5G networks in regional Australia as – despite being slower than the super-fast 26Ghz millimetre wave spectrum that was auctioned off this month – it can cover much larger areas by using less energy to travel.

 

[Dona Ferentes]

and another breakout .... had made it to $1.11 today (for a while)

that didn't sustain itself. Back to the 80c level. The gaming and eSports aspects could differentiate 5GG from other ICT outfits, but will they be wildly successful?

INTERNET SERVICES
Active customers exceeded 12,000 in May 2021. This represents new growth of 9.2% since the Company's Q3 2021 result announced on 31 March 2021. Active Fixed Wireless subscribers have now surpassed 5,000. Of the new 1,277 customers added in the two-month period since 31 March 2021, 586 were new Fixed Wireless customers, showing further growth in the on-net run rate.

CLOUD GAMING SERVICES - GEFORCE NOW
Market interest in GeForce NOW, NVIDIA's premiere cloud-based game streaming service powered by Pentanet, continues to exceed initial expectations. As per the Company's announcement on 26 February 2021, an expanded hardware order was placed with NVIDIA for 18 RTX game servers (up from 12 servers). Given the increased size of the initial pilot deployment, Pentanet and NVIDIA will soon confirm a new commercial launch date extending beyond 31 May 2021. With current registrations of interest now exceeding 45,000, Pentanet has shifted focus from pre-marketing to beta play and national release. Based on the existing level of user interest, the Company's intended pilot program is expected to be oversubscribed.

ESPORTS - PENTANET.GG
Pentanet.GG, the Company's esports arm, continues to successfully build awareness of gaming and esports in the Australian ecosphere. PGG made history as the first Australian esports team to progress past the Group stages in an international League of Legends tournament, placing sixth in the world at the recent Mid-Season Invitational tournament in Iceland.

 

[Dona Ferentes]

84c to 76c then a trading halt, for a capital raise.


Mmmmm

 

[Beaches]

84c to 76c then a trading halt, for a capital raise.


Mmmmm

Timing was definitely poor.

 

[peter2]

Like this chart of 5GG and the follow up break-out above 0.70 resistance level. Chart based spec position as I barely understand the company's principle activity.

 

[Dona Ferentes]

. Chart based spec position as I barely understand the company's principle activity.

Latency. or level playing field for gamers. That is the aim

 

[peter2]

So if 5GG can provide minimal latency or at least the same latency for all the gamers simultaneously no matter where they are in the world, is this a BIG thing or is it just a nice thing? What I don't know is, can this functionality provide huge subscriptions in the future? Will gamers flock to this platform over all the others?

 

[Dona Ferentes]

Yesterday 5GG entered into an agreement with Cambiam to accelerate 5G development, and it went up 10 per cent


But today

PENTANET ENTERS INTO AN AGREEMENT WITH OPTUS FOR CLOUD GAMING

Pentanet Limited (ASX:5GG) is pleased to announce the signing of a Collaboration Agreement with Optus Mobile Pty Limited to deliver the NVIDIA GeForce NOW cloud gaming service to Optus customers.

Pentanet remains the exclusive distributor of the NVIDIA GeForce NOW cloud gaming service in Australia. This Agreement marks a significant milestone towards the Company’s goal of commercialising GeForce NOW with the introduction of Pentanet’s first large-scale wholesale partner. Pentanet and Optus will work towards a program that enables enhanced experience for GeForce NOW users on Optus SubHub, with a specific focus on 5G and the GeForce NOW user management platform, CloudGG. The Agreement offers potential to accelerate growth for both partners.

Through this Agreement, GeForce NOW will be integrated into the Optus SubHub subscription management platform, enabling access for Optus’ customers in Australia.

And it's up 50 per cent... (to all of 25c ... long time between drinks)

 

[Dona Ferentes]

It's an industry where the thirst for capital seems never-ending, and participants are "running just to stand stiil", so well worth avoiding.

PLACEMENT
• Placement will result in the issue of up to~74 million shares which represents ~25% of pre-offer share capital to raise approximately $6.1 million (before costs)
• Issues within existing placement capacity under ASX Listing Rule 7.1 and 7.1A
• Placement shares will rank equally to existing ordinary shares on issue
• Following the completion of the placement, eligible shareholders can participate in a non-underwritten share purchase plan to raise up to $2.5 million

PLACEMENT PRICING
• Placement Shares will be offered at a price of $0.083 per share.
• The Placement Price is a discount of 17% to Pentanet's last closing price on the ASX on 12 April 2023 ($0.10 per share), a 19.4% discount to Pentanet’s 5-day VWAP (A$0.103 per share) and an 18.6% discount to Pentanet’s 10-day VWAP ($0.102 per share).

USE OF FUNDS
• Telecommunications Infrastructure funding for 5G tower upgrades to provide wider coverage to increase on-net subscriber growth
• 5G licensed spectrum
• Working Capital and cost of the offer

... and down she goes. $0.087 at latest

 

[Dona Ferentes]

PLACEMENT PRICING
• Placement Shares will be offered at a price of $0.083 per share..

USE
... and down she goes. $0.087 at latest

and a year later ... today's near doubling may let stale holders escape.

PENTANET EXTENDS GEFORCE NOW ALLIANCE AGREEMENT WITH NVIDIA FOR CLOUD GAMING IN AUSTRALIA & NEW ZEALAND.​

Pentanet Limited confirms .. the execution of an amendment to the GeForce NOWTM Alliance Partner Agreement with NVIDIA. The Agreement now formally recognises New Zealand as a serviceable territory, with a pathway to add neighbouring territories. It also allows Pentanet to continue being the exclusive distributor of GeForce NOW in Australia.

Since launch, Pentanet has amassed 530,000+ GeForce NOW Powered by CloudGG members, serviced by infrastructure located in Perth and Sydney. The Company now also has a solid base of paid memberships, effectively covering the fixed monthly recurring costs incurred in the early stages when the service was launched. The cloud gaming market in Australia is projected to experience significant growth in the coming years.

Pentanet Managing Director, Mr Stephen Cornish, said, “Now that we have demonstrated success with Nvidia, we are moving to a Capex deployment model more in-line with our requirements, and retain a first right of refusal to continue being the sole distributor for GFN in Australia. With over half a million members now part of the CloudGG ecosystem, Pentanet continues to demonstrate the growing appetite for cloud
gaming in our territory.”

Phil Eisler, Vice President of GeForce NOW at NVIDIA, said, “Pentanet has fostered a deeply engaged cloud gaming community in Australia with GeForce NOW Powered by CloudGG. Its commitment to delivering GeForce RTX 3080-level performance that elevates experiences for gamers nationwide and underscores the company’s dedication to pushes the boundaries of gaming and internet connectivity.”