Fund Manager Summary
The fund managers believe that the outlook for Pentanet Ltd presents significant opportunities for growth, particularly through its strengthened relationship with NVIDIA. In their opinion, the recent extension of the GeForce NOW Alliance Partner Agreement and the addition of New Zealand as a serviceable territory positions 5GG to expand its cloud gaming services, which already boasts over 530,000 members. Furthermore, the inclusion in the NVIDIA Graphics Delivery Network enhances its capabilities beyond gaming, opening doors to industrial and commercial opportunities. The capital raising of approximately $4m is seen as a strategic move to fund necessary infrastructure improvements. However, the fund managers caution that the market will require further financial details and tangible evidence of growth before a re-rating of the stock can occur.
Source: Trading View
Commentary From The Managers
Subscribe To Unlock
Date
Price
Summary
Unlock Recent Updates With ThesisTracker Pro
Don’t let information asymmetry undermine your investment returns. Join other engaged investors on ThesisTracker Pro.
Saville Capital
31 Aug 2025
$0.03
Summary
- Pentanet (5GG) achieved its first full year of positive EBITDA at +$1.4m, a significant improvement from - $1.3m in the previous corresponding period (pcp).
- The company reported positive operating cash flow for FY25.
- Revenue growth was +8% on pcp, with gross profit increasing by +15% due to improved ARPU/margins.
- Management has intentionally reduced marketing spend during the rollout of 5G coverage across its tower portfolio.
- This strategy aims to enhance the market offering with the Ultrafast capability of 5G and build critical scale.
- Approximately 25% of the portfolio has been upgraded to 5G, enabling the company to resume marketing efforts.
- Increased marketing is expected to lead to higher subscriber numbers and an accelerating revenue growth profile from FY26 onwards.
Text:
Text:
Text:
Summary
-
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua, ut enim ad minim veniam.
-
Ut enim ad minim veniam, quis nostrud exercitation ullamco laboris nisi ut aliquip ex ea commodo consequat, sed ut perspiciatis unde omnis iste.
-
Duis aute irure dolor in reprehenderit in voluptate velit esse cillum dolore eu fugiat nulla pariatur, at vero eos et accusamus et iusto odio dignissimos.pedita.
Text:
Text:
Text:
Summary
-
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua, ut enim ad minim veniam.
-
Ut enim ad minim veniam, quis nostrud exercitation ullamco laboris nisi ut aliquip ex ea commodo consequat, sed ut perspiciatis unde omnis iste.
-
Duis aute irure dolor in reprehenderit in voluptate velit esse cillum dolore eu fugiat nulla pariatur, at vero eos et accusamus et iusto odio dignissimos.pedita.
Text:
Text:
Text:
Summary
-
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua, ut enim ad minim veniam.
-
Ut enim ad minim veniam, quis nostrud exercitation ullamco laboris nisi ut aliquip ex ea commodo consequat, sed ut perspiciatis unde omnis iste.
-
Duis aute irure dolor in reprehenderit in voluptate velit esse cillum dolore eu fugiat nulla pariatur, at vero eos et accusamus et iusto odio dignissimos.pedita.
Text:
Text:
Text:
Summary
-
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua, ut enim ad minim veniam.
-
Ut enim ad minim veniam, quis nostrud exercitation ullamco laboris nisi ut aliquip ex ea commodo consequat, sed ut perspiciatis unde omnis iste.
-
Duis aute irure dolor in reprehenderit in voluptate velit esse cillum dolore eu fugiat nulla pariatur, at vero eos et accusamus et iusto odio dignissimos.pedita.
Updates are made available to members within 12 hours in accordance with the ThesisTracker Pro Service Level Agreement.
Please note: The completeness, accuracy or current status of the investments referenced are not guaranteed.
Commentary From The Managers
Saville Capital
31 Aug 2025
$0.03
- Pentanet (5GG) achieved its first full year of positive EBITDA at +$1.4m, a significant improvement from - $1.3m in the previous corresponding period (pcp).
- The company reported positive operating cash flow for FY25.
- Revenue growth was +8% on pcp, with gross profit increasing by +15% due to improved ARPU/margins.
- Management has intentionally reduced marketing spend during the rollout of 5G coverage across its tower portfolio.
- This strategy aims to enhance the market offering with the Ultrafast capability of 5G and build critical scale.
- Approximately 25% of the portfolio has been upgraded to 5G, enabling the company to resume marketing efforts.
- Increased marketing is expected to lead to higher subscriber numbers and an accelerating revenue growth profile from FY26 onwards.
Summary
Saville Capital
30 Apr 2025
$0.04
- Pentanet (5GG, +24%) achieved its second consecutive quarter of positive EBITDA, increasing by 17% QoQ.
- Solid revenue growth of 10% on pcp contributed to this positive performance, alongside ongoing tight cost control.
- The Company is on track to double its 5G coverage footprint in FY25, with half of the existing tower network expected to support 5G capabilities.
- Upcoming launch of an ultrafast, competitive on-net offering at scale is anticipated upon completion of the upgrade program.
- 5G subscriber growth has been steady, increasing by 13% QoQ, though broader marketing efforts are deferred until coverage expands.
- Gaming revenue saw a 1% QoQ increase and 29% on pcp, mainly due to higher ARPU.
- Pentanet has stabilized its balance sheet with a net cash inflow of +$0.1m for the quarter, resulting in a cash balance of $2.3m.
- Available financing facilities total $6.6m, alongside significant 5G equipment stock for growth in FY25.
- 1H FY26 is viewed as a pivotal period for the Company, with expanded 5G coverage expected to enhance subscriber and revenue growth.
- Saville Capital continues to hold due to the potential for higher margins and significant value for shareholders as the new offerings roll out.
Summary
Saville Capital
31 Jan 2025
$0.05
- 5GG generated its maiden positive quarterly EBITDA of $0.6m, showing a $1m improvement on 1Q.
- Cost-reduction initiatives and disciplined financial management contributed significantly to the EBITDA increase.
- Steady revenue growth of +7% on pcp, totaling $5.7m.
- Gross profit increased +6% on pcp (and +17% QoQ) to $2.8m.
- 5G subscribers rose +17% QoQ, with plans to double network coverage in FY25.
- Gaming revenue growth was up +27% QoQ, driven by a 23% increase in Cloud Gaming ARPU due to new pricing plans.
- Net operating cash flow improved to $0.9m in 2Q FY25, up from -$0.6m in 1Q.
- With over $2m in cash and ~$7m in unused debt facilities, 5GG is managing cash flow tightly.
- Saville Capital believes the Company is proving its ability to operate a profitable business model, expected to improve as revenue scales.
Summary
Saville Capital
31 Mar 2024
$0.07
- Saville Capital notes that 5GG had a busy month with significant announcements regarding its partnership with NVIDIA.
- 5GG signed an extension to its existing GeForce NOW (GFN) Alliance Partner Agreement.
- New Zealand has been added as a serviceable territory, with potential expansion to Indonesia.
- The agreement allows 5GG to exclusively sell its cloud gaming services, which currently boasts over 530,000 members.
- 5GG has achieved a sufficient base of paid memberships to cover its fixed monthly operating costs.
- 5GG's inclusion in the NVIDIA Graphics Delivery Network (GDN) enhances its capabilities beyond cloud gaming.
- The GDN enables businesses to create interactive experiences using NVIDIA’s global streaming infrastructure.
- This new capability opens up additional industrial and commercial opportunities for 5GG.
- 5GG undertook a capital raising of ~$4m to fund new NVIDIA cloud servers and infrastructure.
- Saville Capital sees potential for significant earnings growth through its relationship with NVIDIA.
- However, further financial details and tangible evidence are needed for a more sustained re-rating of the stock.
Summary
Please note: The completeness, accuracy or current status of the investments referenced are not guaranteed.
ANALYST INSIGHT
Equity Research Analyst
With a burgeoning partnership with NVIDIA, the potential for Pentanet Ltd seems poised for explosive growth. However, until the market sees solid financial data, the stock may remain a tantalizing prospect rather than a guaranteed winner.
Last Updated: 31 Aug 2025
Query The Data
Frequently Asked Questions
Who is investing in Pentanet Ltd (ASX:5GG)?
Fund managers including Saville Capital have invested in Pentanet Ltd (ASX:5GG).
Why do fund managers invest in Pentanet Ltd?
Fund managers are investing in Pentanet Ltd due to its strategic partnership with NVIDIA, which enhances its cloud gaming services and expands its market reach. The recent extension of the GeForce NOW Alliance Partner Agreement and inclusion in the NVIDIA Graphics Delivery Network positions Pentanet for significant earnings growth. With a growing member base and the ability to cover operational costs, the company is poised to leverage new commercial opportunities in diverse sectors, supported by a recent capital raising for infrastructure expansion.
What happened to Pentanet Ltd (ASX:5GG)?
Fund managers are investing in Pentanet Ltd due to its first full year of positive EBITDA and operating cash flow, indicating financial stability. The company achieved an 8% revenue growth and a 15% increase in gross profit, driven by improved average revenue per user (ARPU) and margins. With 25% of its infrastructure upgraded to 5G, Pentanet is poised for competitive market positioning and plans to enhance marketing efforts, which is expected to boost subscriber numbers and revenue growth in the upcoming fiscal year.