Pentanet Powers Ahead with Fourth Positive EBITDA Quarter and Bold Growth Plans
Pentanet Limited reports sustained profitability with its fourth consecutive positive EBITDA quarter, underpinned by subscriber growth and gaming monetisation. The company is now shifting gears, launching a new brand campaign and focusing on accelerating subscriber acquisition and gaming revenue.
- Fourth consecutive positive EBITDA quarter at $0.6 million
- Total subscribers reach 18,360, up 4% year-on-year
- 5G subscriber base grows 63% year-on-year
- Gaming ARPU rises 51% year-on-year to $21
- New brand campaign signals strategic reinvestment phase
Sustained Profitability Sets Stage for Growth
Pentanet Limited, Perth’s homegrown internet service provider, has delivered its fourth consecutive quarter of positive EBITDA, reporting $0.6 million for Q1 FY26. This consistent profitability reflects disciplined cost management and operational efficiency, providing a robust financial foundation as the company pivots from infrastructure build to growth acceleration.
Revenue for the quarter rose 9% year-on-year to $5.9 million, supported by a steady increase in subscribers and a shift towards higher-value plans. Gross profit margins improved to 49%, underscoring the strength of Pentanet’s business model amid competitive pressures.
Subscriber Growth and 5G Momentum
Subscriber numbers climbed to 18,360, marking a 4% increase over the prior corresponding period. Notably, 5G subscribers surged 63% year-on-year to 986, with a 9% quarter-on-quarter increase, reflecting growing utilisation of Pentanet’s next-generation network infrastructure. The company is now focusing on subscriber acquisition rather than further infrastructure expansion, aiming to leverage its existing assets more effectively.
Churn rates remain stable on the on-net subscriber base at 1.1%, though off-net churn edged slightly higher amid intensified competitor promotions. Pentanet’s blended average revenue per user (ARPU) held steady at $95, indicating a balanced mix of subscriber plans.
Gaming Division Drives ARPU and Engagement
Gaming continues to be a bright spot for Pentanet, with its CloudGG platform showing strong growth. Average revenue per user (ARPU) in gaming rose 51% year-on-year to $21, driven by premium plan adoption and new marketing initiatives. The captive audience on CloudGG expanded 21% to over 749,000 users, with popular titles like Battlefield 6 fueling engagement ahead of peak season.
The company is capitalising on its exclusive partnership with NVIDIA GeForce NOW to convert free memberships into paid subscribers, aiming to build a sustainable and scalable gaming revenue stream.
Brand Reinvestment and Strategic Outlook
Pentanet is launching its first large-scale brand campaign since FY23, designed to reignite awareness and strengthen its position as Perth’s ISP of choice. This campaign is a key part of the company’s strategy to accelerate subscriber acquisition and enhance customer engagement and trust.
Looking ahead, Pentanet plans to maintain its EBITDA-positive results while investing strategically in growth initiatives. With $2.4 million in cash and $6.9 million in unused financing facilities, the company is well-positioned to fund its next phase of expansion without compromising financial discipline.
Bottom Line?
Pentanet’s steady profitability and strategic reinvestment mark a pivotal shift towards growth, but execution on subscriber and gaming expansion will be critical to sustaining momentum.
Questions in the middle?
- How effective will the new brand campaign be in accelerating subscriber growth?
- Can Pentanet sustain its positive EBITDA while increasing marketing and growth investments?
- What impact will intensified competitor promotions have on churn and ARPU going forward?
