October-December 2024
- Revenue totaled 107 MSEK (91)
- EBITDA totaled 17 MSEK (-6)
- Operating loss totaled -18 MSEK (-14)
- Loss after tax totaled -71 MSEK (12)
- Earnings per share totaled -0.63 SEK (0.23)
- Cash flow for the quarter totaled 38 MSEK (191)
January-December 2024
- Revenue totaled 334 MSEK (290)
- EBITDA totaled -0 MSEK (-66)
- Operating loss totaled -82 MSEK (-95)
Adjusted operating loss totaled -82 MSEK (-106) - Loss after tax totaled -162 MSEK (-60)
- Earnings per share totaled -1.45 SEK (1.09)
- Cash flow for the year totaled -123 MSEK (-31)
- The Board of Directors proposes that no dividend be paid for the financial year 2024
Significant events during the quarter
- Expanded order from Swedish Space Corporation. The new total order value of 132 MSEK was paid in 2024
- Successful demonstration with the Swedish Defence Materiel Administration (FMV)
- 185 MSEK order from Swedish Space Corporation on Ovzon 3
Significant events after the end of the quarter
- Ovzon participates in major strategic 6GSAT initiative
- Renewal for delivery of SATCOM-as-a-Service to the Italian Fire and Rescue Services
- André Löfgren appointed as new CFO effective May 1, 2025
- Extended and amended loan facility agreement with P Capital Partners
A strong finish to 2024 - order book at all-time-high and solid cash flow
2024 has truly been a game changing year for Ovzon. We have successfully launched and entered our first satellite, Ovzon 3, into commercial service. We have broadened our customer base leading to improved growth in revenue and increased profitability. With an order intake during the year of 516 MSEK, we end the year with an order book at 344 MSEK - the highest level ever for Ovzon. This creates a solid foundation and enables a trajectory for growth in 2025.
Momentous fourth quarter
During the fourth quarter we received our largest contract to date - an initial 12-month order on Ovzon 3 with a value of 185 MSEK (17 MUSD). Our partner Swedish Space Corporation (SSC) placed this order for an integrated SATCOM solution, including mobile satellite terminals for immediate deliv-ery. The SATCOM service will commence in the first quarter of 2025. During the quarter, we also received a 17 MSEK expansion of the large order of 115 MSEK signed with SSC in September. Moreover, following the successful in-orbit deployment of Ovzon 3, the lifespan of the satellite was extended from 15 to 18 years. This reduces our annual depreciations with 20 MSEK.
In November, we successfully showcased remote control of an unmanned ground vehicle (UGV) in collaboration with the Swedish Defence Materiel Administration (FMV), using Ovzon's integrated SATCOM solution. The trial highlights the potential of cutting-edge satellite technology in remote operations. Unmanned systems are an area of rapidly increased customer interest.
Considerably improved EBITDA
The introduction of Ovzon 3 into the market is now starting to have a substantial impact on our order intake. Order intake in the quarter at 209 MSEK was the highest ever for a single quarter, totaling 516 MSEK for the full year. This has resulted in an order book at the end of the year of 344 MSEK, creating a firm revenue base in 2025. Our revenue increased by approximately 15 percent both in the fourth quarter and for the full year. As planned, our profitability is improving fast, showing our ability to scale with good returns. EBITDA for the fourth quarter improved to 17 MSEK and was at breakeven for the full year.
Our cashflow also improved in the fourth quarter, following solid cost and cash management. Our ability to obtain early payments from our customers shows that our solutions deliver immi-nent and tangible value to customers with critical missions. Our cash position at year-end was 126 MSEK. In February 2025, we extended our loan facility with P Capital Partners with improved terms.
Strong need for resilient SATCOM as part of critical infrastructure
2024 and the beginning of 2025 has been marked by an increase in global economic and climate change uncertainty and continued intense geopolitical tension. Accordingly, many nations, NATO and other global alliances continue to respond with investments in defense, national security and public safety related capabilities. Sovereign and resilient satellite communications, to connect and protect societies, economies, and ultimately people are at the forefront. This points to an accelerated demand. Satellites are the cornerstone of the new space economy and play a vital role in mitigating natural disasters, defending sovereignty, and coordinating rescue operations. In this 'new world order', Ovzon is uniquely positioned delivering the most advanced satellite communication measured in the optimal combination of performance, mobility and resiliency.
Ovzon has continued to foster its long-term partnership with key customers and strategic partners such as the U.S. DOD and Swedish Space Corporation, who have been early adopters of Ovzon technologies, for instance the Ovzon 3 satellite. During the year we also simultaneously increased our customer and partner base, creating a more geographical balance.
2025 - driving profitable growth
We enter 2025 with a strong momentum. Ensuring commercial success and driving profitable growth will be our number one priority. We will step up our efforts in prioritized markets, both to foster our existing customer base and to onboard new customers. Key to success will be to work with all stakeholders in our ecosystem with the aim of winning larger and longer-term contracts.
We have proven that we are capable of scaling-up in a cost-efficient way - a path we will continue during 2025. We will now make sure to capitalize on our newly launched technology platforms and continue to pursue investments in new value-added customer solutions.
Satellite communication has clearly become a vital part of countries' overall communications infrastructure in their quest for self-reliance. This creates a solid foundation and a promising outlook for a well-positioned Ovzon for 2025, and beyond.
Per Norén, CEO Ovzon
Webcast
In conjunction with this interim report, a webcast will be conducted at 2 pm CEST on February 21, 2025. Ovzon's CEO Per Norén and Interim CFO Viktor Bremer will present the results and answer questions.
The webcast can be reached via the following link: https://www.finwire.tv/webcast/ovzon/q4-2024/
For further information, please contact:
Per Norén, CEO, pno@ovzon.com, +1 206 931 7232
Viktor Bremer, Interim CFO, vbr@ovzon.com, +46 73 078 06 87
About Ovzon
Ovzon offers world-leading integrated mobile satellite communications services, SATCOM-as-a-Service, to customers globally. The services combine high throughput satellite networks, mobile satellite terminals, gateway services, and dedicated customer support. Ovzon's offerings meet the growing demand for mission critical connectivity for customers with high performance, mobility and resiliency requirements such as Defense, National security and Public safety. On July 5, 2024, commercial service commenced on Ovzon's proprietary developed geostationary satellite Ovzon 3. Ovzon has offices in Stockholm, Sweden as well as Herndon, VA and Tampa, FL in the USA. Ovzon is listed on Nasdaq Stockholm Small Cap. For more information, visit www.ovzon.com.
This information is information that Ovzon AB is obliged to make public pursuant to the EU Market Abuse Regulation. The information was submitted for publication, through the agency of the contact persons set out above, at 2025-02-21 08:00 CET.
