Strong revenue growth
Jul-Sep Jul-Sep Jan-Sep Jan-Sep Full-Year
TSEK 2022 2021 2022 2021 2021
Revenue 78 069 47 823 255 884 118 169 191 378
Operating -11 954 -22 785 -38 272 -84 353 -113 383
Profit/loss for 2 024 -12 339 6 507 -62 131 -83 854
the period after
Earnings per 0,04 -0,26 0,13 -1,34 -1,78
Total cash flow -60 406 144 516 -104 041 268 146 208 880
Equity ratio, % 71 80 71 80 78
Order book, SATCOM 10,4 11,4 10,4 11,4 29,1
Share price end of 37,45 48,30 37,45 48,30 62,80
Strong revenue growth
The third quarter was, similar to the previous two, characterized by high activity in Ovzon, where our future opportunities remain strong despite the challenges in our surrounding world. Our sales activities in the form of dialogues, product demonstrations and tests with existing and new customers continue to be high. There is an increased need and interest in high-performing, efficient, and secure mobile satellite communications for all types of customers with critical missions. We are convinced that this will lead to strategic business. We have high-performing satellite capacity available for fast delivery of our SATCOM-as-a-Service offering, which is an advantage in these discussions. At the same time, we continue to experience relatively long sales cycles and lead times ahead of decisions. It is a natural effect of the increased financial and geopolitical concerns, but also a fact, that different types of decision-makers and procurement functions at customers need more insights and understanding of how secure and resilient satellite communication (Ovzon SATCOM-as-a-Service) works.
Revenue growth of 63 percent and increased customer dialogue
Our improved financial performance continued in the third quarter with strong revenue growth. Revenues increased by 63 percent during the third quarter, and 40 percent adjusted for currency fluctuations, compared to the same quarter last year. We continue to deliver on last year's increased order intake with very good feedback from customers. This applies, not least, to the significant order from the Italian Fire and Rescue Services, which has become a reference customer for us. With that said, the strong US dollar contributed to our growth rate during the quarter. Our operating profit was also strengthened compared to the previous year, but at the same time hampered to some extent by the fact that we still have some of the strategically purchased satellite capacity unsold. During the first nine months, this had a negative effect on the operating profit of MSEK 33.1. This excess capacity is, however, still a strength for us, as we can rapidly deliver our SATCOM-as-a-Service for future business. Our order intake has not yet mirrored the ongoing activities in our customer dialogues, but we have good indications that this will change.
Ovzon 3 in final stages of integration and test
In our previous interim report, we communicated that the details and clarity around the launch of our own satellite Ovzon 3 have increased significantly in recent months. The satellite is now in the final stages of integration with active final tests. Given that all tests perform well, and that all logistics and coordination is achieved, the launch of Ovzon 3 will take place sometime in the time period December 2022 to February 2023. In the wake of the pandemic with global component shortages and logistical problems as a result, we observe that many satellite programs have been delayed. There are therefore several organizations in the industry who, like us, are planning to launch satellites in the near future. The prioritization and the queue system for launches are totally dependent on when satellites are finally tested and transported to the spaceport. In the past, it has been the case that national and political interests also weigh heavily. Our focus is, of course, that our obtained launch plan will hold and that no other external factors will affect it. It will take approximately another four months after launch before the satellite is in an operational position and can be used for customer service.
In good position for year-end
To summarize, we continue to focus on driving profitable growth with our core offering, Ovzon SATCOM-as-a-Service. The generally increased macroeconomic uncertainty of the past six months has so far not significantly affected us or the industry in which we operate. Instead, we experience that the increased critical geopolitical situation in Europe as well as globally has led to an increased demand for surveillance, security, and critical communication where traditional communication channels and infrastructure cannot be used or are not available. Our previous assessment that sales in 2022 will be significantly higher than in 2021 remains.
We continue to strengthen our organization and management team. I am very pleased to welcome Noora Jayasekara on board as Ovzon's new CFO from November 1, 2022. In addition, other key recruitments are ongoing and will be important on our continued growth journey. We have a great opportunity to further strengthen our leading position in line with our new vision; "Connecting the world's critical missions via satellite".
Per Norén, CEO Ovzon
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