5G Networks says it’s beating sales targets – and its shares are gaining
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Newly listed broadband disruptor 5G Networks is ahead 9 per cent today after telling investors it’s ahead of sales targets.
5G (ASX:5GN) connects medium-sized businesses to high speed internet on fibre networks (and has nothing to do with 5G mobile networks).
5G wants to build its own network along the eastern seaboard, targeting business customers frustrated with their snail-pace connections.
It listed in November and bought data and cloud business APTel for $6 million earlier this year.
5G shares have reached as high as 93c compared to their 25c issue price. Today they were up 9 per cent at 50c.
The company has confirmed it now has 16 sites connected on 10 gigabyte fibre throughout Melbourne, with around five kilometres of cable installed passing more than 600 buildings.
There are also four live base stations in Melbourne and two more coming online in July.
However, it’s the sales pipeline that’s providing the best news for the business.
“The 5G sales team has been exceeding monthly sales targets which highlights the clear need for services and products that 5G offers the Melbourne mid-market corporate sector,” management said in a statement this morning.
5G boss Joe Demase told Stockhead the company was well placed to serve mid-market corporates across Australia, many of whom were frustrated with bigger telcos where “getting something done takes a month” if you’re a smaller client.
His approach was to be “very responsive to customers” and to provide a range of data, connection and storage options for people.
Now providing services to Melbourne customers, Demase says the business is considering expansion and acquisition options, along the east coast and looking west.
The company raised another $3.5 million at 60c a share earlier this year to help fund the purchase of APTel, which had 800 mid-market clients on the books for data and cloud services at the time of acquisition.
Today 5G says the acquisition has been completed and the business is already realising efficiencies because of it.