Extra subscribers boost Pentanet revenue in June quarter

An extra 1281 subscribers helped lift Pentanet’s revenue to $4.6 million in the three months to June, up 5 per cent on the previous quarter and 40 per cent year-on-year.

The Perth-based internet services provider also reported an increase in cash received from customers — from $4.4m to $4.7m — over the quarter, which was helped by the 5 per cent jump in overall subscriber growth to 16,674.

Fixed wireless customers comprised 39 per cent of total subscribers.

In its report of quarterly activities, Pentanet managing director Stephen Cornish said the company had achieved revenue growth despite fixed wireless network constraint challenges.

“As we alleviate these issues daily, I look forward to increasing our growth rate in FY23,” he said in a statement.

Pentanet said challenges around temporary capacity constraints were “ongoing” on its fixed wireless network but were expected to start easing as it navigates continued upgrades and creates more coverage with its neXus product.

The company said extra coverage from neXus — a high-speed wireless internet connection that works through the air using innovative mesh technology — would allow it to leverage more value from existing infrastructure while “preserving network quality by alleviating high-demand capacity constraints”.

Pentanet said its monthly customer churn increased marginally from 1.02 per cent to 1.09 per cent, with the main category for churn notices relating to relocations and off-net NBN subscribers.

Operating cash payments were also up, from $6.3m to $6.6m, and were driven by a 14 per cent increase in product manufacturing and operating costs.

“(This) is mainly due to increased stock levels to mitigate supply chain shortages,” the company said.

The company has cash reserves of $13m.

Pentanet shares were up 1.35 per cent to 38¢ just before 11am.