Pentanet Powers Ahead with Subscriber Growth and New Brand Campaign

Steady Financial Performance Amid Growth

Pentanet Limited has delivered a solid start to fiscal year 2026, reporting a 1% increase in consolidated revenue quarter-on-quarter and a 9% rise compared to the prior year period, reaching $5.9 million. The company maintained positive earnings before interest, tax, depreciation, and amortisation (EBITDA) at $0.6 million for the fourth consecutive quarter, underscoring disciplined cost management and operational efficiency.

Gross profit climbed 21% year-on-year to $2.9 million, with an improved gross margin of 49%, reflecting a stronger mix of higher-value plans and operational improvements. Pentanet’s gaming segment, powered by its CloudGG platform, contributed notably with a 33% revenue increase year-on-year and a 51% rise in average revenue per user (ARPU), highlighting the growing appeal of its cloud gaming services.

Subscriber Growth and Network Expansion

Operationally, Pentanet’s total subscriber base grew 1% quarter-on-quarter to 18,360, driven primarily by off-net customers, which increased 2% to 11,603. This growth was supported by the NBN Speed Boost program, which upgraded eligible fibre and HFC connections at no extra cost, enhancing service speeds and attracting new customers. Meanwhile, on-net subscribers remained stable at 6,757, with 5G subscribers rising 9% quarter-on-quarter to 986, reflecting ongoing adoption of Pentanet’s expanding 5G network footprint.

Churn rates remained relatively stable, with a slight increase in off-net churn to 1.4%, while blended ARPU held steady at $95, supported by customer migration to higher-speed plans. The company also maintained sufficient inventory of customer premise equipment to support expected 5G deployment in the first half of FY26.

Strategic Brand Relaunch to Drive Growth

Looking ahead, Pentanet is poised to shift gears with the launch of a new brand campaign in Q2, its first large-scale marketing initiative since FY23. Managing Director Stephen Cornish emphasized that after a period of cost discipline and positive EBITDA, the company is ready to reinvest in growth. The campaign aims to enhance market visibility, drive subscriber acquisition, and reinforce Pentanet’s identity as Perth’s own internet service provider.

This strategic move signals a deliberate return to growth, leveraging a refreshed creative platform designed to strengthen customer engagement and trust. The company’s focus remains on delivering reliable internet services backed by local support, a key differentiator in a competitive market.

Cash Flow and Capital Management

Cash flow improved significantly, with net cash from operating activities rising 50% quarter-on-quarter to $0.6 million. Despite a $1.7 million final payment for a 15-year 5G spectrum license, Pentanet closed the quarter with a healthy cash balance of $2.4 million and unused financing facilities of $6.9 million, providing flexibility for ongoing investments.

Overhead costs declined 15% year-on-year, reflecting continued operational discipline, particularly in employee-related expenses and marketing. The company’s financial foundation remains solid as it balances reinvestment with cost control.

Cloud Gaming Momentum

On the entertainment front, Pentanet’s GeForce NOW Powered by CloudGG platform sustained stable performance, with premium subscription tiers showing growth and ARPU increasing 6% quarter-on-quarter. The platform’s captive audience expanded 21% year-on-year to over 749,000 members, benefiting from a strong game lineup and expanded marketing ahead of the seasonal peak expected in Q2.

This diversification into cloud gaming complements Pentanet’s core telecommunications business, positioning the company at the intersection of next-generation internet services and emerging digital entertainment trends.