The gaming portion has always been a play thing of Cornish.Has...

The gaming portion has always been a play thing of Cornish.
Has anyone noted that the 'on-net' % has actually reduced from last year (43% to 39%)
That means the growth in past 12 months in subscribers (4188 total) was only 1133 on-net (a measily less than 100 per month)
The suggestion they were migrating NBN to -on-net does not seem to be working or attempted.
The economics of the mmwave service are yet to be tested with significant costs in the network (capitalised) but also a high cost of acquisition of $229. That means that if they were to attract a person to Nexus the cost of that customer will be:
- cost of acquisition - $229
- cost of Nexus hardware - $199 (capitalised)
- cost of installation - $250 (I'm being generous here)
- cost of wifi router - $300 (capitalised)

Total cost = $978
They charge $99 for current signups and in future $129 (inc gst)
So annual income from user will be 1080 (1407 for full fee paying)
If their margin is around 86% - that means 929 (1210)
That means cashflow wise - it will take more than a year to recoup the investment

This is going to need more cap raising to sustain beyond this FY.
$30million in accumulated losses so far to get to 16k subscribers earning about $17mill in revenue. If they could show explosive growth and a path to 30-50k subscribers - this might make sense - but they are focussed on Perth alone and cannot scale anywhere else as they would have to build infrastructure again elsewhere.

The reality is most people do not need the speeds they are after - but Cornish wants gamers to have access to this.
I'm afraid the business might have some good looking marketing, but as an investment it has never made sense to me