5GN - 5GN Networks

[System]

5G Networks Limited is the holding company of the 5G Group. The Group has 2 operating entities:

• 5G Network Operations Pty Ltd
• Enspire Australia Pty Ltd

These 2 operating entities own and operate the Networks Business and the ICT Services Business. The Networks Business supplies high speed broadband access to mid-market corporate businesses. The ICT Services Business supplies cloud, hosting support and network services to mid-market corporate businesses.

It is anticipated that 5GN will list on the ASX during October 2017.

https://www.5gnetworks.com.au

 

[greggles]

Has anyone else noticed how well 5GN has been doing in the last week or so? It has moved from the mid-20s to around 40c, reaching highs of 48c.

On 27 November the company announced that it was granted an Australian Carrier Licence on the 13th
September 2017, to provide data telephony and internet services. It also announced that 5G Networks subsidiary, Enspire Australia, have extended relationships with industry leaders Microsoft, HP and Telstra.

Since then it has really taken off. With a market cap of just $8 million, it is possible that 5G Networks could be a good future growth prospect in the high-speed internet and cloud infrastructure niche. Obviously it will depend a lot on earnings but IMO 5GN is one to watch.

 

[Ann]

Up 8.87% to 0.80c today.

5G Networks activates high-speed data network to meet customer needs

Telecommunications carrier 5G Networks (ASX:5GN) will continue to boost expanding revenue flows following the launch of its high-speed managed data network (MPLS) to the Australian market.

The launch of the nationwide network across Australian capital cities has been a key component of the company’s strategy since its ASX listing in 2017.


MPLS will enable 5G Networks to extend its fibre and wireless network to its customer base with controlled capital expenditure, swapping out third party services with its own.


According to the company, the fully operational data network with dedicated speeds up to 10gb will mesh secure and private access to existing cloud, hosting and managed services with seamless connectivity to all 5G Networks data centres.


The Melbourne-based company expects the MPLS will drive continued growth of revenue and earnings before interest, tax, depreciation and amortisation by accelerating the current data network revenue growth rate of 112%, in addition to reducing reliance on third party providers. More...

 

[greggles]

5GN Networks pushing through to new highs today.

Not a lot of news since the last Quarterly was announced on 26 April, but it all seemed quite positive then with the successful nationwide high-speed data network launch in April 2019, $8 million capital raise, and the completion of the Melbourne Data Centre acquisition.

Presumably revenue will now continue to increase given the latest developments.

5GN up 8.50% to $1.595 so far today and looking bullish.

 

[BlindSquirrel]

I'm looking keenly at this one for when it breaks out of its current channel

 

[BlindSquirrel]

This one has popped and regressed, just taking a breather (hopefully waiting for November 1st) before getting back to business. For that reason I've chosen it for my monthly tip!

 

[So_Cynical]

Lots of little (new) fibre and network stocks doing very well, have updated a watchlist.

 

[Dona Ferentes]

nice kick to above a dollar, then retreating to 92c, over the last fortnight; probably based on signing First Indirect Channel Partner.

"Servers Australia" offer access (IaaS) to Data Centres in Australia and NZ, mainly NextDC, Vocus and Equinix.

(competitive space; I've done well out of MP1 ... is this a viable alternative? Is it all priced as a "race to the bottom"?)

 

[Dona Ferentes]

• 5GN has entered into an agreement to acquire a privately owned data centre in North Sydney; the purchase price is $2m, which is 3 times EBITDA.
• The all cash acquisition will be funded from existing operating cashflow and cash reserves.
• Annualised revenue is reported at $1.3m and EBITDA $750k. Capital expenditure required to achieve 100% capacity is expected to be $500k.
• Acquisition provides access to the rapidly growing North Sydney technology corridor.
• Combined capacity now exceeds 720 racks across owned and operated data centres in Adelaide, Melbourne and Sydney.

(Incidentally, "The NSDC houses over 120 data centre racks with current utilisation at 32%"; I've never seen a data centre with higher utilisation. Because the sector is growing at 50%+ pa, then new ones have to be established as the existing ones seem to fill up quickly.

My impression: 5GN not impressed with the NBN or, specifically NBNCo, and seem to be migrating to this side of the ICT spectrum. From the Nov AGM

As previously highlighted, a key feature of today’s Australian ICT industry is the ongoing penetration of new access technology from NBNCo™ which in FY19 has connected to over 6* million premises. This represents a growth of 50% from 2018 and this development is now bringing significant disruption to the business landscape, with NBN services now actively promoted across both residential and business customers.

This outcome is notably disappointing given most corporate premises already enjoy competitive offers through many service providers who have historically invested in providing high value fibre network services

 

[Dona Ferentes]

But , continuing on, growth is a focus but not necessarily where they thought it was going to be:

While Australian spending on public cloud services is expected to grow by 18.3 per cent year on-year in 2020, outpacing the increase in global spending at 17 per cent year-on-year, according to data from Gartner. By the end of 2019, Australian organisations are expected to spend $6.6 billion on public cloud services, and the forecast increase of 18.3 per cent would see this figure increase to $8.1 billion in 2020. This growth underpins our data centre and cloud expansion strategy.

The Company will continue to identify opportunities to drive aggressive growth and deliver shareholder value, underpinned by our targeted acquisition strategy.

- which will need capital.

 

[Dona Ferentes]

But , continuing on, growth is a focus but not necessarily where they thought it was going to be:
- which will need capital.

and the call has gone out.... (but are CBDs the place, post Covid?)

... looking to raise up to $22.3 million on Wednesday, via an $18.3 million placement and a $4 million share purchase plan, according to terms sent to funds. The offer was priced at $1.23 a share, which represented an 8.9 per cent discount to 5G Networks' $1.35 last close and a 5.7 per cent discount to the five-day VWAP.

... the fresh capital would be used for M&A opportunities and to expand its fibre networks in Sydney and Melbourne as well as financing new builds in Brisbane and Adelaide, particularly focused on the central business districts of each city.

 

[Dona Ferentes]

5GN Placement looking for $18million was strongly oversubscribed, with demand being derived from a broad range of new and existing institutional investors. 5GN is now well-capitalised to pursue its organic growth strategy and to fund acquisition opportunities.

and now a SPP, looking to pull in $4million, from retail. Same price; $1.23.

Now trading $1.45 so should get there (scaleback??)

 

[Dona Ferentes]

3. 5GN is not aware of any other explanation for the recent trading in its securities.
4. 5GN confirms that it is in compliance with the Listing Rules, including Listing Rule 3.1.

But someone may have an explanation

 

[Dona Ferentes]

market looks like it is struggling (as am I) to see what is happening

second raise in a few months ($22mill in May; GAAP strategy?)...

successful completion of the placement of 5GN shares to raise $27.5 million at an offer price of $1.80 per share. The Placement was completed with a broad range of new and existing institutional investors. 5GN notes that the 5GN Proposal [for WebCentral] is fully funded through the $27.5 million Placement

• 5GN acquired a 10.2% strategic interest in Webcentral Group Limited (WCG)
• 5GN plans to leverage 5GNs expertise and asset base to improve the profitability of WCG
• 5GN has previously undertaken detailed due diligence on WCG as part of their recent strategic review process
• 5GN made an indicative non binding offer for the rest of WCG. The Proposal includes:
- The transaction would be conducted as an off market takeover bid.
- The pre-conditions to the takeover bid are the negotiation and entry into a bid implementation agreement between 5GN and Webcentral and a unanimous Webcentral board recommendation.
- The consideration under the takeover bid would be 1 5GN share for every 12 Webcentral shares

so, where are the synergistic benefits? (there's another offer for WCG around)
5-day chart since the placement:

 

[Dona Ferentes]

5GN Placement looking for $18million was strongly oversubscribed, with demand being derived from a broad range of new and existing institutional investors. 5GN is now well-capitalised to pursue its organic growth strategy and to fund acquisition opportunities.

and now a SPP, looking to pull in $4million, from retail. Same price; $1.23

5GN requests the trading halt pending an announcement concerning a material acquisition; .... Monday

 

[bk1]

There's the offer now...1 5GN for 12 Webcentral shares. Recommended by the Webcentral board. 5GN also would fund the removal of the not inconsequential debt burden of Webcentral, currently $47M....

 

[Dona Ferentes]

home straight for WCG

 

[Dona Ferentes]

just been watching. ... the idea may be good, but to me there's nothing but tears when weevils* get involved

Keybridge Capital Limited made an application to the Takeover Panel dated 21 October 2020 in relation to the affairs of Webcentral Group Limited.
The President ORDERS:
5G Networks Limited must not process any acceptances received on and from Friday, 23 October 2020 in relation to its off-market takeover bid for all of the fully paid ordinary shares in Webcentral pursuant to its bidder’s statement dated 18 September 2020.

*cereal pest

 

[Dona Ferentes]

The 5GN takeover of Webcentral Group Ltd is now complete and our executive team and board are extremely satisfied with the outcome and inline with expectations. 5GN currently provide numerous Cloud, Telecommunications and Managed IT services to WCG; these services represent our core strengths.

The strategic business relationship will continue to expand, with 5GN now seeking to leverage WCG capacity for software code development for operational improvement and automation across our service delivery platforms. Importantly, the acquisition of WCG has enabled 5GN to fast track its exposure to the SMB market and WCG’s 330,000 existing customers via it’s online sales portal. Additionally, 5GN will also develop a comparable e-commerce system as used in the WCG portal to deliver low touch, automated services to its wholesale clients.

Future acquisitions will be funded from existing cash reserves, and we expect a large proportion of the WCG debt ($41m) to be repaid over the next 12 months.

 

[Dona Ferentes]

5G Networks (ASX:5GN) launches wholesale offering to leverage physical assets

Highlights
• Expects to grow Revenue by $10m per annum
● 5G Networks has launched its partner sales channel, 5GN Wholesale, to its Melbourne base, with launches in Brisbane and Sydney to follow in the coming weeks.
● It comes after 5GN completed a series of development and investment initiatives, including the acquisition of Intergrid, the integration of ColoAu with 5GN infrastructure, development of a 5GN Wholesale Ordering Portal and the creation of its 5GN Wholesale website.
● 5GN Wholesale will offer customers access to data centre and connectivity services, as well as IP Transit and 5GN cloud services.
● 5GN continues to invest in its service offerings, with the continued roll-out of fibre across parts of Sydney, Melbourne, Brisbane, Perth and Adelaide connecting 80 data centres with services such as Dark Fibre.

5GN aims to be a vertically-integrated business providing data connectivity, cloud and data centre services to businesses in Australia. It is still in the early stages of achieving its end game,