Pentanet shares rocket on Nvidia deal
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More news: Shares in Pentanet shot up 80% in early trading on the ASX after the Perth-based telco announced an extension to its cloud gaming deal with Nvidia.
Pentanet shares were trading at $0.09 by 11:10am AEDT.
Nvidia extends deal with ASX telco minnow Pentanet
The news: Perth-based telco and internet service provider Pentanet has extended its partnership with Nvidia over the Nasdaq major's cloud gaming service GeForce Now (GFN).
The numbers: Since partnering with Nvidia on GFN in January 2021, Pentanet has gained over 530,000 new members, serviced by infrastructure in Perth and Sydney.
The amended agreement with Nvidia, which has no finite term, will see Pentanet extend its GFN exclusivity in Australia in six months increments for each additional purchase of USD1.5 million ($2.3 million) in GFN point-of-delivery infrastructure.
Pentanet's Q2 results showed that its gaming segment maintained positive EBITDA, with paid memberships climbing 52% quarter on quarter.
The context: The amended agreement also extends Pentanet's GFN distribution exclusivity, which previously only covered Australia, to New Zealand, with a "potential territory expansion" to Indonesia on an non-exclusive basis.
What they said: Pentanet managing director Stephen Cornish said: "Now that we have demonstrated success with Nvidia, we are moving to a Capex deployment model more in-line with our requirements, and retain a first right of refusal to continue being the sole distributer for GFN in Australia."
"With over half a million members now part of the CloudGG ecosystem, Pentanet continues to demonstrate the growing appetite for cloud gaming in our territory," he said.
The source: ASX announcement
