Pentanet don’t need 50% of the national market, if they win 5% of the Perth market (as I mentioned, customer service is a massive influence over who people will use so I think 5% mkt share is not too optimistic). That’s about 50k users. If they’re all on wireless, that’s ~ $40m EBITDA. Put that on 10x (which would be a conservative multiple), you get $2/share.
regarding cloud gaming, of course we don’t know how many customers they will have yet, they haven’t rolled it out (beta trials start soon). But we do know hat 35k users have already registered in 2-3 months? Assume 100k users at $20 a month. After royalty payments to Nvidia, you’d be looking at $15m Rev per year at very high margins..in a couple of years there will be a lot more than 100k customers. Anyway, put say $10m on 10x...that’s a further $1.00/share. So we’re already at $3/share and we haven’t even looked at cross selling opportunities if they want to look at east coast markets or acquisitions.
As I understand it, it’s exclusive with Nvidia based on capex targets (which are being met). Not sure others can roll out Nvidia unless they buy it from Pentanet.
on your comment about gigabit broadband, why don’t you think it will work on Pentanet spectrum?
Pentanet don’t need 50% of the national market, if they win 5%...
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