Hello, and welcome to today's webcast with Ovzon, where CEO Per Norén and CFO Viktor Bremer will present the report for the second quarter of 2024. After the presentation, there will be a Q&A, so if you're calling in and want to ask a question, please press star nine to raise your hand and then star six to unmute when you are given the word. If you want to type in a question, you can use the form to the right. And with that said, I hand over the word to you, Per.
Thank you so much, Ludvig. Good afternoon, good morning, and warmly welcome, and thank you for joining us today on Ovzon's earnings call for the second quarter of 2024. I'm here in the room to my right with our CFO, Viktor Bremer. The first half, and especially the second quarter of 2024, has been very busy and exciting for Ovzon. As you know, we successfully launched Ovzon 3 on January 3rd, and after a five-month journey, the satellite arrived at its dedicated orbital position at fifty-nine point seven east in June this year. After comprehensive and successful in-orbit testing, the satellite was ready for commercial service on July 5th. That's definitely an historical milestone that obviously will have a huge impact on our company going forward.
During the first half year, the Ovzon team has performed numerous activities, including both product and service launches, as well as sales pursuits and commercial dialogues with current and potential customers around the benefits of Ovzon 3. We will for sure get into more details in a few minutes, but before that, and as always, let me provide a short introduction to Ovzon. Ovzon is a leading provider of the most advanced, integrated, and unique satellite communication, spearheading the progressive development in the industry and have the most sophisticated mobile satellite communication solutions in the world. We're committed to constantly developing and introducing relevant solutions, technologies, and applications to our customers. We continue to be fully dedicated to our vision and mantra of connecting the world's critical missions via satellite. Ovzon was established in Sweden in 2006 and has been traded on Nasdaq Stockholm since 2018.
Initially, the company concentrated its efforts on the most compact and high-performing mobile satellite terminals in the industry. Today, it's very different. We have expanded our offerings to be the only turnkey provider of SATCOM-as-a-Service, the industry's leading premium solution, offering unparalleled levels of connected, mobile, and resilient performance. This position has definitely been strengthened as our own first proprietary satellite, Ovzon 3, is now operational, with all the benefits that means for our customers. Speaking of customers, we work closely with customers, partners, distributors, and end users across the United States, Sweden, Europe, and currently also South America. We have invested over SEK 2 billion in our new revolutionizing technology programs over the past three years, resulting in cutting-edge next-generation platforms that will be rolled out to customers during 2024 and onwards. A little bit about the relevance of satellite communications.
Satellite communications has always been available for decades, but in recent years, the demand for and the investments in advanced satellite communications have accelerated. There are several structured drivers behind the increased demand, as fixed communication and mobile networks lack some of the important features that only satellites can offer. First of all, the very concerning geopolitical tension in the world continues to escalate. Nations, alliances, and organizations are therefore accelerating their investments in total defense, national security, and public safety. Countries with little to no satellite infrastructure are now shaping plans to create more space-based systems that allows for more autonomy and independence. In case of conflicts or natural disasters, guaranteed communication with 100% uptime is crucial on land, at sea, or in the air.
Secondly, secure and resilient communication is becoming a very important requirement in all parts of society, especially for our customer groups. Cyber violence is becoming more advanced, and strongly protected systems and networks and more resilient communications infrastructure is a must. When land and mobile-based communications are down or cannot be relied upon, satellite communication will provide the access to communication instantly. The third driver is simply digitization. Instant decision-making and operational efficiency in all types of organizations is today driven by improved digital processes and quick access to data and information. We expect to be online always and everywhere. AI and cloud computing accelerates the pace of digitization even more.
Satellite communication is therefore the last mile, and it's becoming an integral part of an integrated communication infrastructure, and it's the pillar in that communication landscape, either used as backup to complement the normal infrastructure or mobile, mobile networks or to replace fixed and mobile telecom networks. Finally, on climate change, fixed and mobile networks are vulnerable, and they also lack some important features that only satellite communications can offer. With the changes in weather patterns and increased flooding, storms, and wildfires. Satellite communication is, in many cases, the only answer to quickly execute rescue missions in saving lives and preserving nature. What is unique about Ovzon is that we deliver a solution where we manage and control the entire value chain for guaranteed performance.
In the first half of 2024, I'm proud to share that we've performed at a 100% uptime of our networks and services for our customers who have very high demands and requirements. This is definitely a critical success factor for Ovzon in the premium segment. Before Ovzon 3 was in commercial service, and we're talking to this picture, we based all of our solutions on leased satellite capacity. This has obviously changed overnight with Ovzon 3 operational, and Ovzon is now both a satellite operator and a service provider, controlling and managing our own satellite capacity and complementing that with leased capacity. This picture shows that we deliver SATCOM-as-a-Service with immediate connectivity from, if you look from one, the smallest and lightest and most high-performing mobile satellite terminals, to managing high-performing, agile, and steerable satellite networks.
Now our service is based on both our own networks on Ovzon 3, as well as leased capacity. This is very strategic and very exciting to us. We partner with selected few secure gateway providers in number three, where we implement our own hardware and secure racks to manage our service delivery. In four, we manage all of that through our dedicated twenty-four/seven support from our various network operation centers to ensure that any potential anomalies are resolved in real time. Our customers expect 100% uptime and that we are predictive and progressive as a guaranteed connectivity solutions provider. Here's a more graphical description of where we are positioned today and where we've moved in the competitive solutions landscape, with mobility on the X-axis and performance on the Y-axis.
Built in is the ability to deliver an integrated solution that has built-in resiliency. The three components, performance, mobility, and resiliency, what set different service providers apart. Ovzon operate in the most advanced solutions landscape, and we are thereby in the critical missions, meaning the premium segment of the market. Our next generation technology based on Ovzon, the Ovzon 3 platform, has moved us even further up the value ladder. The Ovzon 3 platform will lift guaranteed satellite communication and customer experience to totally new levels. Now, let us in brief run through the highlights of the second quarter of 2024 in chronological order. As you know, we launched our satellite, Ovzon 3, in Florida from Cape Canaveral on January third, 2024.
Since then, in parallel with monitoring a safe and steady journey for Ovzon 3, we have conducted numerous preparational activities to be operationally ready when the satellite was ready for service. This has included intense focus on customers in key markets, ensuring they understand and can take full advantage of the benefits of the unique capabilities that Ovzon 3 offers. We launched two new SATCOM-as-a-Service offering based on Ovzon 3. We named them Ovzon Pegasus and Ovzon Orion. We also launched two new mobile satellite terminals, the Ovzon P20 and the Ovzon P30. They are on-the-move terminals for land, maritime, and airborne applications, and the Ovzon T7 on-the-pause mobile satellite terminal is now in serial production and was delivered on time to the first customer, the United States Department of Defense.
In terms of orders, we received renewals for SATCOM-as-a-Service from both the Spanish Police as well as the UK Ministry of Defence. In June, Ovzon 3 arrived at a designated position in space. We concluded comprehensive and successful in-orbit tests, and on July fifth, Ovzon 3 entered into commercial service. The first user and use case for Ovzon 3 was a close collaboration with the French government regarding secure and guaranteed connectivity for the Summer Games in Paris. Earlier this week, we also announced our first large order on Ovzon 3 from our long-term customer, the US DoD, or United States Department of Defense. We also shared that we delivered an initial limited order through Swedish Space Corporation, also using Ovzon 3. I'll walk you through some of these events in more detail on the following slides.
Let me provide some additional information about the important preparations made in Q2 ahead of the commercial start of Ovzon 3. To deliver on our value proposition and our, and for our customers to fully take advantage of the benefits and the unique capabilities that Ovzon 3 offers, we have significantly expanded both our service and mobile, satellite terminal portfolios. These new additions is a result of working very closely with our customers. The new SATCOM-as-a-Service offerings based on Ovzon 3, both of them are designed to meet the customers' demands for the best combination of performance, mobility, and resiliency. The new solutions are, as I said, named Ovzon Pegasus and Ovzon Orion. Ovzon Pegasus is our most powerful, steerable beam service with an enormous flexibility and for the most demanding customers.
Ovzon Orion is for those customers that are operating in very contested or near peer environments. We also launched two new mobile satellite terminals, as mentioned, the Ovzon P20 and Ovzon P30. They are the smallest and most advanced on-the-move terminals for land, maritime, and airborne applications. Moreover, Ovzon T7, our on-the-pause terminal that we launched during 2023, is now in serial production, and was delivered to the US DoD on time, and are used now by them. As previously mentioned, we initiated the first and highly relevant collaboration for Ovzon 3 in June for the Summer Games in Paris. To be honest, we couldn't have wished for a more advanced, determined, and real-time first use case of the Ovzon 3 capabilities.
The ongoing collaboration is with the French government organization, Groupe d'intervention de la Gendarmerie nationale, who's been using the service to meet its, advanced secure connectivity demands during the Olympics in Paris. The results have been excellent, and the feedback from the customer has been excellent. Ovzon 3 arrived, as we said, in its dedicated position after a five-month journey of orbital raising. This was followed by very comprehensive tests and successful in-orbit tests and ground system implementation. The performance and the capacity, is fully achieved, or in fact, it exceeds the requirements that we designed this satellite for, so on July fifth, in 2024, Ovzon 3 was, according to plan, ready for commercial service, which was an extraordinary moment for our company, and our company's history.
The satellite covers a third of Earth by its six high-power steerable spot beams and is equipped with our patented solution, and the unique software-defined capabilities in the Ovzon 3 onboard processor. As a quick summary of what makes Ovzon 3 unique compared to other geostationary satellite is, that it's purpose-built to support the smallest mobile satellite terminals on ground. It has an all-steerable antenna architecture. It's industry-leading in transmit and receive performance, and the Ovzon 3 onboard processor is enabling single-hop communication between ultra-compact terminals. Earlier this week, we received our first large SATCOM-as-a-Service order on Ovzon 3 for our newly launched Ovzon Pegasus service. This was very, very important. Just to reflect for a second over that, we put Ovzon 3 in service on July fifth.
The French organization used it during the Olympics, and only three weeks thereafter, we had our first large contract on the satellite. This order came from a long-term customer, the U.S. Department of Defense, through the distributor Viasat Government Services. Delivery started immediately, and the contract length is twelve months, with an order value of approximately $6.2 million. For those of you who follow Ovzon 3 closely, remember that we received an order from the U.S. DoD in December 2023 for eight months. That ended on July 31st this year. That order, when received, was re-scoped compared to previous year, and mostly explained by a complex political and fiscal situation and budget situation in the U.S., resulting in new budget considerations and processes.
Now, with this new contract in hand, we've strengthened our foothold and will continue to add value to the US DoD with the Ovzon 3-based SATCOM-as-a-Service and the new Ovzon T7 terminal. Yesterday, we also shared that we received a smaller, limited order for Ovzon 3 from Swedish Space Corporation. The service was delivered within 24 hours of being requested, and I will only note this, within 24 hours, we can move a steerable beam and be fully in service with the best capabilities in the industry, which is quite remarkable. That is a true example of mobility as well, I would say. This order relates to a different end customer than the order received from the Swedish Space Corporation in December 2023.
We are now more than ever committed to providing Sweden, the US, and other nations and progressive governments and organizations with unmatched, guaranteed communication via satellites. Now, let's move over to what most of you are probably interested in, even though I think it's important to understand the context of the company, where we've been, the great achievements in the first half of the year, and where we're heading before we look at the numbers, so we put that in perspective. But let's move to the financial part of this presentation and begin with our order intake. 2024 has started in a very positive way.
While our market activities have been intense and focused, it's a fact that some customers have awaited the commercial start of Ovzon 3 and our next generation of SATCOM-as-a-Service, and they cannot test or acquire a service that is not in operational use. The largest order in the second quarter was a renewal of twelve months service contract from the UK MoD through our new partner, Babcock International, a very large aerospace company. This renewal is important as it solidifies our installed base in Europe. We also received a renewal for delivery to a Spanish customer within the civil defense sector. Consequently, the twelve-month rolling order intake at the end of the quarter amounted to $30 million, translated to SEK 380 million Swedish kroner, indicating a better order momentum than what we previously had.
Looking at the order book, it was at $30.2 million at the end of the quarter, including orders received in August. It is now obviously higher than that. Our shift in focus to customers in the defense, national security, and public safety market has proven to be the right move. It has and can lead to larger contracts, but it's also a reminder that government procurement and evaluation processes are somewhat complex and time-consuming. I would now like to hand over to Viktor Bremer to provide some more detailed information on our profit and loss. Over to you, Viktor.
Thank you, Per. I will now give you some details on the financial performance for the second quarter. The revenue of SEK 67 million in the second quarter is split between Ovzon SATCOM-as-a-Service of SEK 57 million , and Ovzon Terminals of SEK 10 million . We can see that the decrease in the revenue from Ovzon SATCOM-as-a-Service between the second quarter 2023 and 2024 is compensated by increased revenue from Ovzon Terminals, although not fully. Important to note is that we, in the second quarter, actually improved the revenue from Ovzon SATCOM-as-a-Service from the last two quarters due to the new orders that we received in Q4 2023 and Q1 2024.
When we are looking on the run rate for Ovzon SATCOM-as-a-Service, we are breaking the negative trend from the last two quarters, and the run rate is up to SEK 230 million. Next slide, please. EBITDA of SEK -12 million in the second quarter is the second-best EBITDA, the last seven quarters. This is an improvement from the second quarter 2023, and we have reduced the EBITDA loss with almost half. The improvement is mainly a result of high utilization of leased capacity in combination with revenue from sale of Ovzon Terminals. EBITDA margin improves from -31% in the second quarter 2023 to -17% in the second quarter 2024.
EBIT and EBIT margin follow the same trend as EBITDA and EBITDA margin, since we managed to keep depreciations and amortizations on a stable level due to the low level of activated investments. As we communicated in the report, part of the Ovzon 3 will gradually be activated as a fixed asset in the coming six months, and depreciations will therefore increase going forward. Cash flow from operations improved in the second quarter compared to the same period last year, as well as to the first quarter this year. For the first six months, we are also in total positive on cash flow from operations with SEK 5 million . Cash flow from investments are mainly related to the finalizing of Ovzon 3, and the majority part of the SEK 49 million in the quarter relates to capitalized interest and financial expenses.
As we communicated in the report, the interest expenses and financial expenses will, from the third quarter, affect the financial expenses in the income statement due to the fact that Ovzon 3 will be activated as a fixed asset and start to be depreciated. Net debt increases from the first quarter, which is mainly a consequence of net negative cash flow for the period. Over to you, Per.
Thank you, Viktor. I want to summarize our financial KPIs first before we go into a little bit more forward-looking aspect of things. But I would like to highlight our rolling twelve-month development, which better illustrates our financial performance, as our quarterly development still varies quite a lot. If you focus on the lines in the graphs on this slide, you can see that our order intake is trending in a positive direction, especially including orders received in August from the US DoD and others. Our revenue development shows a flatter rolling twelve-month curve, but as orders come in, that should change. We're normally stronger later in the year, and revenues are also somewhat lagging our order intake. We do expect and plan for increased growth going forward and more predictability.
When it comes to EBITDA and operating cash flow, I'm pleased with the current improvements, as Viktor just talked about, and the continuous improvement ahead of us. We're now definitely entering a new era to drive profitable growth going forward. We would like to conclude this part of the webcast before we go to questions and answers with some further comments and forward-looking remarks. First of all, I would say this, we've been in a very intense period of finalizing our first own proprietary satellite. It's taken a lot of effort and time, but 2024 is a game changer for the company.
The launch on January third without anomalies, the satellite in its orbital position without anomalies, the first use case on the day of commercial service, and then followed by a strong order from the US DoD, is definitely a new era for our company, where we can now manage our own satellite capacity together with leased capacity, if needed. We've got great feedback and reference points from the customers that have been using Ovzon 3 early on, of course. As I said, we can now also optimize the use of our own and potentially third-party leased capacity. The satellite covers a third of Earth, and if there are cases for other parts of the world, we always have access and ability to use
third-party lease capacity for that, and the prospect of us serving customers very quickly is very strong. We'll continue to focus our execution to drive a step change towards profitable growth, and we strive to be even more predictable in our order intake. Our customer segmentation and geography are very focused. They are focused more or less on U.S, Sweden, and Europe within the defense, national security, and public safety sector. We have a unique value to deliver, and we know we are the leading solutions provider of SATCOM-as-a-Service, delivering measurable performance, mobility, and resiliency. We are very concentrated on our sales efforts towards longer term contracts or SATCOM-as-a-Service based on Ovzon 3. During 2024, we'll also continue to accelerate our industrialization initiatives.
As you heard, the Ovzon T7 project is over, and we're now in full production mode of that, so we will have the right inventory for the demands and needs that will come the month and the years ahead. That's very important. We'll continue to accelerate and position Ovzon in our core markets for our customers, countries, and alliances with critical missions. And after periods of a period of very and years of heavy investments, we're now entering a phase of where ongoing technology programs will be finalized. As you heard Viktor talk about the activation of that, those programs that we've invested in, and we should see return on investments from those investments going forward. Our financial position and managing cost and scarce resource is and will always be a key to Ovzon.
You understood from our results that we've managed that pretty well, and we'll continue our discipline in this area. Even though we'll continue to have a mix of own and lease satellite capacity and networks, the use of our own capacity on Ovzon 3 will provide much, much greater flexibility, and it will continue to work in our favor during 2024. In summary, I remain confident in Ovzon's ability to deliver and exceed the world's requirements and the rapidly increasing needs for high-performance satellite communications. And I want to thank all of our colleagues and our customers and partners for all dedication in an extraordinary first and busy half of 2024. With those closing words, I want to hand it over to you, Ludvig, the operator, as we're ready to go to questions and answers. Over to you, Ludvig.
Thank you so much for the presentation here, and as you mentioned, we'll jump straight ahead to the Q&A here. And if you're calling in and want to ask a question, please press star nine to raise your hand and then star six to unmute when you're given the word. And the first question here is Simon Granath from ABG Sundal Collier.
Hi, thank you. Hi, Per and Viktor. Good afternoon, and thank you for the presentation. Initially, looking at the U.S. revenues in Q2 picked up well from Q1, but still they remain far from the historical highs. In Q1, we talked about the complicated situation in terms of budget, decision-making between politicians, et cetera. So my question is how conversations have progressed since then and what you expect here going forward. Obviously, the recent contract bodes well for further improvements, but do you expect sales to gradually extend further beyond the upcoming runway? Thank you.
Hey, Simon, and good to hear your voice, and thank you for the question. Yes, I think this is quite an important question to the company and to those that are following us, investing in us. I'll shed some light on this. So first of all, the December contract that we got, that wasn't a renewal to the levels that we used to, were used to maybe during the last two years before that, that had to do exactly with what you said.
Political uncertainty, change of budgeted, reshuffling of budgeted, less resources to some, you know, areas within the U.S. DoD, more concentration in support to Ukraine, discussions whether or not the budgets for defense should be as high as they were, frozen budgets, versus, you know, and discussions between the Republicans and Democrats around how to allocate resources. That was, that's still all true, even though it's not as prevalent right now as it was then. So that led the U.S. DoD and the budgets and the means they had at their disposal. It meant that they wanted to align the contracts for satellite communications in the area where we are to their fiscal cycle. So therefore, we got that eight-month contract that ended July 31st.
And now we immediately then got a move over from that eight-month contract to Ovzon 3 with higher price levels as well as a longer contract for that. And I think that is actually what we expected for this year, and it puts us in a good position to then continue to expand from that. I think it was ultimately not in the stars that we could just turn back on everything that we had prior to December. It was more of a focused three-step approach with get the contract that we had over to Ovzon 3, then take that show the value of that, and then expand from that with more terminals and more networks for other units within the U.S. DoD.
I would say that there has been a slight decrease in budgets for the units that we support, but I think that will shift back as well. The pendulum swings quite often in the U.S., given the current climate that we have. I think that's the best. It's a very honest answer, transparent answer, and the best answer I can give is, I think this is what we both had hoped for, had planned for, and what we executed on, and I think it bodes well for going forward and doing upsell and cross-sell, utilizing our Ovzon 3 on our new terminals.
Thank you. As always, very good color added. I was wondering about the lease capacity business. We have previously discussed that multiple times, but should we expect the current capacity to remain relatively flat going forward? Or do you seek to either increase or reduce the capacity in light of the Ovzon 3 launch?
Yes. Thank you. Very good question. Let's start on the macro level to answer that question. Obviously, our big goal is to utilize as much of Ovzon 3 as we possibly can, as quickly as we possibly can. That, I think it goes without saying, but I'm saying it anyway. So our core offerings are now based around utilizing that. Understanding also, I'll say this, that Ovzon 3 and the value of those services has a higher value in the premium segment we're in. So we are making sure that we are not getting into any price wars on our solutions.
And therefore, I think we're standing, holding our grounds on prices and making sure that those customers that value what we deliver actually buys that, and they will be less price sensitive because this is what they need. So that's the core of us going forward. When it comes to lease capacity, part of our improvement in our financials is actually that we've utilized the lease capacity to 100% during the last quarter. And that's come because we have optimized the usage of the lease capacity we have. Meaning, we have actually given up some that we had that were unsold because we don't see the need now when Ovzon 3 is online.
But we have access to that, should we want to, again, if there are other regions than what Ovzon 3 covers, or if we get such a big demand on Ovzon 3, so we need to complement with lease capacity, we foresee that we will continue to have some lease capacity and networks on that going forward also in Q3 and Q4 and in 2025.
That makes a lot of sense. Thank you again. And then a final question from me. We have previously discussed your endeavor to increase the durability of your service contracts to mitigate some of the cyclicality we have historically witnessed. Are you starting to make any progress here, or is that further out in time that we may see such change?
Thank you. A very, very good question. One of the most strategic questions we have at Ovzon, obviously. Our objective is to sign to be a part, a strategic partner to our customers and sign long-term contracts and larger contracts with option years. That said, the transformation and the scale-up of the company towards that means that, one, you also have to change who you talk to and who you sell to in the core markets you're in. Two, you have to be part of the strategic conversations inside of those organizations. Sometimes that goes all the way up, or most of the time, it goes all the way up to government levels and top commands on the defense, national security, and public safety side. We are making great strides in this regard, but those processes are long and complex.
But our goal is absolutely to be there, and we are in there in some areas. So we are shaping opportunities towards that. I think it's fair to say that within this year, in the coming 12 months, I would say, I don't think you will see, like, five-year contracts from us, because you also have to work with partners that sit on long those longer term contracts that are also prepared to work with you on that. So to set expectations right, I think we can see 12 to maybe 18 to 24-month contract. That's longer than we traditionally have had. But I think it will take us another 24 I would say 18 to 24 months before we roll into some of those larger strategic deals that we have.
It's a transition for us as a company. It's a transition of how satellite communications is being acquired, and it's transition of who acquires the capacity that is needed here. But discussions are ongoing on that, but it will take its time, so it's not a week by week or month by month or quarter by quarter. It's likely more the 18- to 24-month perspective for that to occur.
crystal clear. Thanks for having my questions.
Thank you, Simon.
Thank you so much for the qeuestions here. And the next caller is Mikael Laséen from Carnegie, please. press star six to unmute.
Okay, hi. Hope you can hear me. Yeah, I have a follow-up on the leased capacity and how you are using that going forward, compared to Ovzon 3. Can you move customers that you currently have to, from leased capacity to Ovzon 3 temporarily? How flexible is that? Is that a possibility?
Yes. Hey, Mikael. Yes, good question. Yes, we are free to move customers to Ovzon 3 if we want to and if it fits the geography they're in, et cetera, et cetera. So that is not a holdback for us in terms of how we utilize capacity and so on. I can provide one more aspect of color that I think comes with this question. And I think I touched upon it with the previous question that came.
However, some of those contracts are obviously on, not on the premium price level that we expect to get out of Ovzon 3, so it will always be an evaluation whether we move them over to Ovzon 3 and take up that capacity for that, or if we believe that our prospective new customers and other customers coming in on a premium, more premium price level are better served by Ovzon 3, and thereby keeping those current customers on the leased capacity, but that's the inner makings of how we optimize and mix and match leased and own satellite capacity to try to optimize our financial results for ourselves as well.
Okay. Thank you. And also, on the order situation, how would you describe the market right now, and your selling activity? Where do you see the strongest interest in terms of, type of customers, or customer use cases or regions, and say something about the sales cycles?
Yes. Yeah, yeah. I'll be happy to. I might not give you the exact answer you were after, but I'll provide some, shed some light on the current situation. I think the current situation in the market is for satellite communications, specifically for the markets that we're now very concentrated on, meaning defense, national security, and public safety. I think the market is. There is a keen interest, there is a strong need, and there are processes ongoing in many countries within alliances such as NATO, et cetera, et cetera. So I would say that the market sentiment is positive and strong for the kind of capabilities and solutions we have. None of this takes a week, a day, a week, or a month.
It takes time, but we've been out, as we've talked about in previous quarters, we've been out for a while, positioning ourselves and sharpening our positioning and having the conversations with the right organizations. So for us, it's now about being able to demonstrate and offer the right capability for the right customer at the right time. And I think the moment is good for it, without saying that it will happen tomorrow. I think we have a good order momentum, and we will continue to try to execute on that during the second half of this year.
Okay, thanks, and this French customer, the GIGN, can you be maybe more specific what the feedback was, and if this was a temporary activity for them, or if they will continue with the service and use your terminals?
Yeah. I will. I don't have that much feedback because if you've studied what, who this customer is, they were stood up after the Olympics in Munich in 1972, where there were terror attacks, as a special force used by France, but also used internationally. So they are extraordinarily advanced. You will never see a face of an individual in that organization, for example, and you will never see pictures of them anywhere. So that's how they operate. They're there to make sure that nothing bad happens, meaning large events like the Olympics or a G20 or a G7 meeting, or whatever it might be.
Our solution that they set up and architected fits pretty well for those kind of things with highly steerable and flexible antennas and beams on the satellite in a concentrated area that drives higher performance of sending and receiving data, et cetera, et cetera. So that's why they actually came to us, because they knew what we did with our current customers. So we don't fully know exactly how the architecture was, but you can think of it as what we know and what I know is you can think of it as almost putting a circle around the main area for the Olympics, with a number of satellites built in that circle. So they have both Wi-Fi spots as well as connection between terminals in how they had a communication solutions.
They wanted to both have a switchover if mobile networks and so on would go down to this as their primary channel of communications, or they would use this when they didn't want anyone else. They didn't wanna be on the regular grid. They would jump over to this. We know that they've used all terminals. They've used it extensively at times and a little bit less at times. We know that. The feedback from the customer is flawless. That's the word that came to begin with. I am about to visit them here sometime in early September to follow up on this.
As you can imagine, they're quite top-secret organization, so they won't send anything our way, but I will be able to experience and get the more detailed feedback together with our team, when we visited with them. The ultimate objective is obviously that we want them to have this as a standard means of communication and solution for them going forward, but since we haven't announced any deal on that, it's obviously not happened.
All right, yeah, sounds promising. Thanks for that. My final question, or actually, I have two questions. The first one is on the new satellite terminals that you launched, P20 and P30, and how they impact how customers can use Ovzon 3, and what it means in number of use cases or, and also financially, how they compare to T6 and T7?
There were two questions. Yes. So let's start first with, you know, listen, the on-the-move terminals that we have traditionally had and that competitive terminal providers provide, are often quite heavy, and larger. So they, it requires customers to have vehicles, whether they are manned or unmanned, to be sturdy enough to be able to cope with that size and weight of those terminals. The Ovzon P30 and Ovzon P20 are lighter, and smaller in size, and they s o they are easier to install, they're easier to use on other types of vehicles, both airborne, land, and maritime.
So that's why we have these, because they fit the on-the-pause terminal size, which is laptop size and smaller and lighter, et cetera, et cetera. They are not as small, so they can be used on a smaller drone, for example, because of the weight of that. But they can be used on smaller vessels and lighter vessels of any sort, which makes them very, very suitable for our SATCOM-as-a-Service solution. So that's what customers are using them for, but it, it's both air, ground, and water or maritime capabilities. And they have high performance because they have the similar capabilities as does the Ovzon T6 and Ovzon T7 from a performance and resiliency perspective.
So we're very, very pleased with that, and our customers are very pleased with it and like it, and that it kind of fits the whole model of that Ovzon offers. And the price points are at par with Ovzon T6 and Ovzon T7. Somewhat more expensive for the larger one, but for the smaller one, I mean, and the larger one, the P30, is at par with the Ovzon T7 in price points.
Got it. Thanks. And the final one, on the remaining CapEx, can you say something, how much investment and final payment that you have to do for Ovzon 3 now in Q3, maybe also in Q4?
Yeah, we'll be happy to provide some context by handing over to Viktor.
Thank you. I will not give you an exact figure on how much we will invest in during this second half year. But there are some remaining investments to do, and we will be, as we communicated, we will capitalize this Ovzon 3 as a fixed asset. When we do that, we will have all the details in place and how much it will be. But I will not give any forecast about how much it is at the moment.
As you can see in note eight, the current accumulated cost for the Ovzon 3 is approximately SEK 2.2 billion, and there are now some additional investments to do, but it's not in the magnitude of that one amount. More to come on that one.
All right. Thank you.
Thank you.
Thank you so much. We have received a couple of questions in the chat as well here. "How much will increased depreciations affect your result from Q3 and onwards?
Yeah, that relates a little bit to the previous question. And as I said, we have in, in note eight, that we have capitalized at the moment up to second quarter, approximately SEK 2.2 billion, and there are some additional, I guess, investments more to do for Ovzon 3. And then the economic lifetime for the satellite is approximately 15 years, but that parameter is not fully set yet either. So there are some different parameters that will play in here, how much the depreciation will be going forward, but this will be more crystallized in the third quarter report.
Moreover, during the construction of Ovzon 3, the financing costs, including the interest fees and the consultancy fees and legal expenses and such things, were also part of the accumulated cost of SEK 2.2 billion mentioned earlier. Going forward, these financial expenses currently amount to approximately SEK 27 million-SEK 28 million per quarter. These will affect the financial expenses in the income statement from Q3 going forward.
Thank you. Since the company has SEK 130 million in liquid funds and a debt of SEK 561 million with repayment next year, will the company need to raise more capital, or do you expect that Ovzon 3 will solve the problem based on better margins now?
Thank you. Very good question. Yeah, as I think Viktor briefed very, very clearly, we have improved our position when it comes to kind of the burn rate and so on. We're keeping a very close focus on costs. We had SEK 130 million in. We have added some contracts here, as we've talked about. So we believe that we have an order book and prospects in pipeline and the business going forward. That means that we are not in a position today where we see any need to do any financial activities outside of just running a good and healthy core business. So not in the plans right now.
Thank you. Moving on to the last question here, are you planning more own satellites in order to increase coverage or capacity? If so, how will this be financed?
Exactly. Very strategic question for the company, obviously. Listen, I'll go out on a limb a little bit. Covering first of all, we are very pleased with that we have a super well-functioning satellite up. That's not all satellite operators that actually manages to do this. There's been actually this year a number of cases where there have been anomalies and no use of the satellites that's been launched, so we are in the Premier League for this, actually, so we're very pleased with that. At the same time, we can't rest on our laurels, so I think the natural answer is, covering a third of Earth is great. It would be great to be able to cover the globe and for our customers to be able to, as I call it, roam on Ovzon.
That said, that is a question of value, ability to finance this as this, and also what the uptake would be and how quick that uptake would be, and compare that with the prospects of using lease capacity in the area where Ovzon 3 is not covering. So the answer is, strategic question for the company. Yes, we would like to be able to cover the globe, but we're not gonna either risk the financial performance, nor the ability to get return on investment of Ovzon 3 by starting other big technology programs right for the moment. But if we can find a way to finance and drive that, we would definitely consider that.
Thank you so much. And thank you, Viktor and Per, for presenting here today and answering our questions, and thank you all for calling in and watching at home. I wish you a pleasant weekend when it starts.
Thank you very much, Ludvig, and thank you everyone that participated.
Thank you.