The Market Online - At The Bell

Join our daily newsletter At The Bell to receive exclusive market insights

  • Mobile service provider 5G Networks (5GN) has gained over 17 per cent today after a strong quarterly report
  • The company recorded $2 million in operating cash flow for the quarter and almost $15 million in cash receipts
  • 5GN was also able to distribute its first dividend, which was fully franked and priced at one cent per share
  • Today’s report comes on the back of last week’s Servers Australia partnership
  • As the day’s trading session news its end,

Mobile service provider 5G Networks (5GN) is up over 17 per cent on the Aussie stock exchange today after a strong quarterly report.

A highlight for the company was $2 million in operating cash flow for the quarter — a record for 5GN. For the first six months of the 2020 financial year, 5GN has recorded operating cash flow of $3.3 million, which is 58 per cent higher than the same time last year.

The increased cash flow means 5GN has had the chance to give back to its investors in the form of its first-ever dividend — fully franked at one cent per share.

5GN listed on the ASX in late 2017 with a $4 million initial public offering which priced shares at 25 cents each. Since then, shares have increased by almost 300 per cent and are now trading around the $1 mark.

The positive operating cash flow for the company is underpinned by $14.6 million in cash receipts for the quarter and $28.1 million for the year. Compared to the same time last year, this is a 19 per cent increase.

Today’s quarterly report comes on the back of an indirect channel agreement with Servers Australia locked in just last week. Servers is one of the country’s largest hosting providers.

According to 5GN, the agreement with Servers will give the company an opportunity to resell the 5GN Cloud solution together with high-speed fibre networking.

5GN, however, seems to have more news on the way, claiming the Servers agreement is just one of “several channel partner signings” supporting the launch of the company’s indirect channel. The company did not give any details regarding what the other channel partner signings might look like.

Investors seem pleased with today’s report, with shares gaining 16.77 per cent by late afternoon trade. Currently, 5GN is selling shares for 98 cents each.

5GN by the numbers
More From The Market Online

Superloop shares drop 7% after legal error forces shareholder restructure

Superloop saw a 7% share price drop amidst an issued a notice directing Aussie Broadband (ASX:ABB)…

Aussie Broadband to acquire Symbio via scheme implementation deed

Aussie Broadband (ASX:ABB) has entered into a scheme implementation agreement to acquire Symbio for $2.26 in…
The Market Online Video

Pentanet (ASX:5GG) well-placed to drive growth in FY24

Perth-based internet provider Pentanet (ASX:5GG) has reported a 17 per cent jump in revenue year or…