The Pentanet juggernaut continues to roll in the over-performing ASX telco sector
Link copied to
The ASX telco segment has been running hot over the last 12 months. Since June 2020, the telecom services index (AXTJ) has risen by more than 20 per cent.
Bellwether stocks like Telstra (ASX:TLS) for example. It’s risen by 15 per cent this year.
In the small caps, Pentanet (ASX:5GG) has continued its good form, rising by 1.75 per cent today after providing a business update.
The company has been the best IPO listing in 2021 so far, with the share price more than tripling from the 25c IPO price in January, to 87c today.
Pentanet reported today that its active customers have exceeded 12,000 in May, a 9.2 per cent growth from its latest Q3 result in March.
In the cloud gaming segment, Pentanet has now increased its registrations for the GeForce NOW service to 45,000 players.
With this significant number reached, the company will now shift its focus from pre-marketing to beta play and then national release.
Meanwhile, the company’s esports arm, Pentanet.GG (PGG), has continued to successfully build awareness of gaming and e-sports in the Australian ecosphere.
PGG made history as the first Australian e-sports team to progress past the group stages in an international League of Legends tournament, placing sixth in the world at the recent invitational tournament in Iceland.
League of Legends is one of the world’s most popular e-sports titles, with 61 million tournament hours watched globally for the 2021 invitational – 5.3 million hours of which featured PGG.
Pentanet’s market cap has now grown to more than $152m.
Despite its ticker code, the company is not involved in rolling out a 5G network in Australia. The business revolves around fixed work connections, with gaming being used to create awareness and attract customers to its network.
Vonex (ASX:VN8) is another ASX-listed telecom company that has done well over the past year.
The company’s share price has tripled to 32c between June 2020 and February 2021, but has since retreated to the current price of 14c.
It provided a business update today, saying that it has achieved 45,000 active PBX users and grew its SME customer by 27 per cent year-on-year to May.
It has also completed its integration with Nextel, and rolled out the NBN Assure service to partners.
NBN Assure is Vonex’s “always on” business NBN service with first to market unlimited speed and unlimited data via 4G backup.
Meanwhile, its recently acquired 2SG Wholesale has adeployed its new B2B NBN ordering platform for wholesale customers.
The company has been on an acquisition path in 2021, buying up and integrating companies into its core offering.
Nextel and 2G Wholesale were two companies that it had acquired over the past year.
Before the acquisition, Vonex had to purchase the NBN, mobile or landline services from third party wholesalers, but by acquiring 2SG, it is now able to purchase these services internally.
The company is yet to make a profit, but the latest quarter shows a 45 per cent incrase in receipts from customers to $4 million.
Another ASX telecom company to have done well is newly listed Swoop, which has almost doubled since its IPO listing last week.
Swoop raised $20 million in a deal that was reportedly 15 times oversubscribed.
It is listing from the ashes of Stemify, which was a US-based diversified tech company.
The company operates one of the largest fixed wireless networks with 246 towers across all Australian states.