Pentanet Ltd

The fund manager continues to hold 5GG, noting the company had a busy month with two significant NVIDIA-related announcements. Firstly, 5GG extended its GeForce NOW Alliance Partner Agreement, adding New Zealand as a serviceable territory with a pathway to further neighbouring markets, with the cloud gaming service now exceeding 530,000 members and having reached the point of covering fixed operating costs from paid memberships. Secondly, 5GG was included in the NVIDIA Graphics Delivery Network, a cloud-to-edge streaming infrastructure available in over 130 countries, enabling the company to expand beyond cloud gaming into industrial and commercial compute opportunities. The manager notes a $4 million capital raise was undertaken to fund new NVIDIA cloud server infrastructure.

The fund manager continues to hold 5GG (Pentanet), noting the company generated its maiden positive quarterly EBITDA of $0.6 million in Q2, a $1 million improvement on Q1, driven by cost-reduction initiatives and disciplined financial management. The manager highlights gaming revenue growth of 27% quarter-on-quarter, 5G subscribers up 17% quarter-on-quarter, and net operating cash flow improving to $0.9 million from -$0.6 million in Q1. With over $2 million cash and approximately $7 million in unused debt facilities, the manager sees this as early evidence of a viable and scalable profitable business model.