Pentanet Secures Funding to Fuel Growth Strategy and Cloud Gaming Expansion

Perth-based telco Pentanet Ltd (ASX: 5GG) has successfully raised $4.28 million at $0.072 per share.

This placement, supported by a mix of international and domestic institutional and high-net-worth investors focused on high-growth technologies, will significantly bolster Pentanet’s cash position to over $10 million.

A significant portion of the proceeds, $3 million, will be allocated to strategic investment in NVIDIA cloud servers and infrastructure. This investment aligns with Pentanet’s position as a frontrunner in cloud gaming.

Australia’s First GeForce NOW Partner

Leveraging its exclusive Alliance Partner Agreement with NVIDIA, Pentanet was the first to launch GeForce NOW in Australia (2021). Since then, the platform has amassed over 530,000 users, solidifying Pentanet’s role in the booming cloud gaming market.

The amended agreement further strengthens this partnership, extending exclusivity to New Zealand and providing a pathway to enter Indonesia.

Upgrading for Enhanced Performance

Pentanet is collaborating with NVIDIA to upgrade its cloud infrastructure with cutting-edge NVIDIA L40 GPUs. This upgrade integrates Pentanet into the NVIDIA Graphics Delivery Network (GDN), unlocking new commercial opportunities beyond gaming.

The L40 GPUs bring the power of NVIDIA RTX, enabling next-generation graphics and immersive 3D experiences.

Financial Growth and Positive Outlook

Pentanet’s cloud gaming strategy is already delivering results. The company achieved EBITDA+ in Q2FY24, with a consistent average revenue per user (ARPU) of $13.

Gaming subscription revenue grew a substantial 51% quarter-on-quarter to $0.4 million, with CloudGG paid subscriptions experiencing a similar 52% increase.

By bolstering its cash position and investing in advanced NVIDIA technology, Pentanet is well-positioned to capitalize on the ever-growing cloud gaming market and explore exciting new opportunities within the NVIDIA GDN.

 

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