Net Insight AB (publ)

Good morning and welcome to NetInsight's Interim Report for Q2 2024. My name is Krister Fridsson, the CEO of NetInsight, and today I have Annika Muscantor, Interim CFO, in the call. And actually, that's the second and last report that you will be into because The new CFO will start in mid-August. So in Q3, Cecilia will take over as the CFO and present the result in Q3. So let's move into the agenda for today. We start with a short summary of Q2. We do an update on media and moving over to time synchronization. Annika will run through the financials. And then we move over to questions in the end of the call. So that's like the agenda for today. So let's move into the results for Q2, and we are so happy to report the record sales for Q2. The net sales were just over 176 million Swedish krona, and that's compared with last year, 126, which is like a fantastic growth of close to 40%. And if you are looking into like the operating earning is over 38 million compared to last year, just under 10, and operating margin is close to 22 compared with 8 last year. And the fantastic is that this is the 15th consecutive quarter of growth, close to four years. So we are so happy to continue to grow, and that's really a strong result for Q2. We also have an historic software order coming in in Q2. It was the main large U.S. customer that placed a software order for close to 13 million Swedish kronor. And that was in line with the long-term agreement that we also upgraded and signed with that customer. But even if we're taking out that historically large order, we had a gross in Q2 over 15%. So that's, it's over our long-term financial targets of growth. So we are happy to like see this is an additional lower than the normal growth that we should have in the quarter. And that was a really strong kick, both for sales, of course, and operating earning. We did a first shipment of the Sintai product to TurkTelecom in Q4. We commercial launch the Syntai product in Q1 this year. And during the first half of this year, we have replaced the old synchronization product with the new Syntai. And we see an increase in POC to contract conversion during the quarter. And we are close to double biggest number of commercial customer. right now and if you look in to the order pipeline for q2 we ended up with 190 million swedish krona compiled within q19 195 and of course that's also the reduction of the the shipments that we have done during the q1 we are so happy that we are coming closer to the standardization of our scene type technology as you know we started the process And we took an important step when we started the standardization in the end of last year. And in the beginning of July, we, the ETU, confirmed and approved the first document of many in Q1. So that was like a very important step towards to have our time synchronization technology-approved SSN within the ITU. Moving then towards media, and let's shift live. This is media. The last year, we have heavily invested in our product. change in our value proposition, use our strong innovation and power of expertise to come up with the best solution in the market. And this has really been paying off. And we see that we are recognized as the obvious partner within the live media I hope that you hear me because we hear some noise in the, in our, and now I think we are reconnected. It says, okay, perfect. We are reconnected. So, yes, summarize, I mean, we are proud to be a part of the, the Summer Games, but we also like demonstrate our position in the market by being the obvious partner then nothing can go wrong. Our teams are on site at the Games, supporting the Games, of course, but also assisting many of our customers that attend the event as well. So we have people on site, and then some of the revenue from the Olympics has been taken as revenue in Q2, and some part will take revenue in Q3 as well. I mean, this historic software order, the unique with this order is that this is unique in its size. But this is the normal way that we are doing business with our customer, that we had hardware installation of like the 600 and the 1000 series. And we have, as you know, been delivering in the Tarzan series since 2018. And it's the same hardware as we have today to deliver, which means that it's easy for the customer to upgrade. And the customer that we have signed the order with has a huge installation base in the U.S. And they have upgraded and extended a number of features and functions within the network. The order is based on the standard margins. And it also includes recurring revenue of license revenue for upgrade and maintenance of the software that they have installed. If you look into our business model, the normal customer lifecycle for us is that They start normal with initial hardware installation. And our target last year is like keeping the hardware, not changing that, and upgrade with software that the customer can, as we have launched earlier, like double the capacity on the 1060, easy as the software upgrade. So it's the same hardware that we launched 2018. Also, it's the same with the IP-based solution that we have launched the last two years. It's the same hardware, but the customer can upgrade the product and features by software. And it goes both for the 1000CU and the 600CU. Of course, it's a huge benefit for the customer because it's lower the cost. us it's obvious it's a sticky product that we have and we don't get challenge of in a procurement or an RFQ so we can stay with the customer and our relation with the customer is normal very long over 10 we have customers that have been with us over 10 years which of course create the stability in our business lower the cost of or the taking new customer is costly so this lower our sales cost of course but one major thing is that we are very customer centric it's not just the safe people meeting the customer it's the product management it's the ctu i meet the customer i our eip expert cloud expert meet the customer to understand the needs understand the market and definitely deliver the right product and the right features to the customer. So that's one of the key things that we focus on and the strategy that we have for the last years to focus more on software have really been paying off. I mean, we have had growth for 15 quarter and we have been growing more than the overall market. So we are taking market share right now. And we see that we are very attractive on the huge sport events and the league. And normally, we see that when we are coming into competition and they evaluate our proposal, compare the competitor, we normally are very strong in this situation and come out as a very positive and can sign the deal with the customer. We have focused on growing the recurring revenue. We're doing that by, of course, software, both on the hardware product, but also on the cloud-based product. So that's the focus that we continue to do. And they give us also stability and increased margin, of course. Moving over to synchronization, then, and the highlight. Sync is a critical function in any network and specifically 5G or critical network or even the power grid is a critical function. If it's not working, the network will not be able to deliver the services that the customer really paying for. So all operators do a thoroughly test and evaluation of the function like this like this before they take the decision to move forward. And they are testing in several stages. They normally start with a lab test, and then maybe they do a lab test combined with the live network. And then they do maybe a larger test in the network to understand how they should use the product and how they should design the network. And this can result in longer safe cycles. But they also make the benefit for us that we be as sticky in the network. We will stay with the relation for a very, very long time when we have been choosing supply to the customer. And we will have like a customer relation for many, many years. As you know, they're still building out the 4G networks. that have been in the market for many many many years and 5g and 6g will be deployed for many many years going forward and we will have wrong relationship with the customer steadily delivery product and constantly to them when they are building out the network and we also have the license fee recovery revenue coming in on the install base that we have with the customer As I mentioned, we are proceeding with the standardization on our technology. So as you know, ITU has decided to include our technology as a new working item within the ITU standardization group for time synchronization. That decision had been taken earlier, end of last year, early this year. But the big step this quarter is that they were taking in the beginning of July took and approved the first document of several were approved by the ETU group. So that was like a good milestone for us, showing that we are going on the right track to get a type approval or standardization of our technology. And within the telecom market, this is an important part for the telecom operator. They are asking us, are you a standardized product and we cannot say we are in the past to get this technology standardized and that's enough for the operator and they tick that box because it is important part and they give us of course a strong position in the market we get more marketing around that that we are within the ITU now for standardization so the operators are also of course included into this work and and we do it together with other operators and we are suppliers as well. Last year, as I think most of you know, it was a huge earthquake in Turkey. From that, they had, TurkTelcom had a huge, of course, affected the network quite dramatically. Hundreds of sites were actually been taken down, and they need to be replaced and rebuilt. So the focus right now for TurkTelekom has been since then to replace and restore, restoring the network. And that's of course before they can proceed with expansion. In the contract that is signed in the end of 2021, it was decided and finalized that the last delivery of the order should be taken, should be in 2026. but we see now a risk that the final delivery is delayed until 2027. So it's not decided, but we see a risk in the situation that we see that TurkTelcom is in right now. And the full 5G license is expected to be issued around year end or beginning of next year. And the order book in the end of this quarter, as I mentioned, is 190. And in the end of last quarter, it was 195. And the leave-in during quarter effect, of course, remain in order book. Okay. Thank you for that. If you have any questions, you can pull them into the chat, and we will answer them after the presentation from Annika. So I hand over to you, Annika.

Thank you, Christer. I'm pleased to have the opportunity to walk you through this six-month report. I will, of course, repeat some of the points that Christia has made, but let me try to add some more color. So let's start with the past quarter in net sales. Net sales grew to 176.1. That is to be compared to 126.3 million in Q2 of 2023. And it corresponds to growth of 39.5%, as you see it reported, which remains basically the same on a currency-adjusted basis. This means that the past quarter is the 15th consecutive quarter of a year-over-year growth. Now, the reported net sales, of course, include a 30 million SEC order. If we exclude that from the calculations, the growth would have been 15.5%. And if we do take a look at that on a four-year, oh, sorry, four-quarter rolling basis, the growth would have been 17.1%. i.e., even there, as Krista said, exceeding the organic growth target. The growth is driven by a steady increase of sales in our media offering, as well as 9 million being contributed by the time synchronization project. Notably, that the reported sales were about the same last year, when we reported 8.9 million. However, that number included $7.1 million of NRE SEC fee, while this quarter did not. And hence, the $9 million SEC this year reflects current sales. So, to clarify what the NRE fee is for those of you who have not, or are new to this insight, the NRE is an abbreviation of non-recurring engineering. In short, it relates to the agreement that we made with Charter Telecom at the end of 2021. It was a prepayment that was to be recognized as revenue over a two-year period as development proceeded. And if you'd like to read more about that, I urge you to turn to the annual report of 2021 and the publications around this contract. With that, moving on to operating earnings for the quarter, which amounted to 38.3 million SEC. And that is an increase from 9.9 million that we reported in Q2 last year. The improvement is, of course, to an extent driven by the large software order of 30 million SEC. Even when we exclude that, the earnings were driven by increased sales and a favorite product mix with a high proportion of software that was somewhat offset by an increase in marketing and sales expenses. For competitive reasons, we will not disclose neither the operating profit nor the operating margin for the quarter excluding the large software order, which I'm sure you all understand. However, as we state in the report, the operating profit excluding the specific order has improved compared to the same period last year. In the operating margin terms, this translates to reported operating margin of 21.8%. That is to be compared to 7.8% in the second quarter of last year, and if you wish, 12.7% for the 2023 fiscal year. The reported margin is inevitably positively affected by the software order. But please note that it was executed based on our standard margins, hence the improvements driven by the order is more attributable to the scale effects a larger order inevitably has on a mostly fixed cost base with that for the quarter i'd like to turn your attention to the right hand column and talk about the six months the first half year of 2024 and there we can conclude that net sales grew by grew to 318.6 million I can compare that to 252.9 million for the same period last year. And it corresponds to growth of 26% as reported, which is coming in only marginally lower, 25.5% on the currency adjusted basis. The reported net sales do, of course, include the 30 million SEC order. However, please note that it only counts for slightly more than 9% of total net sales in the period. Time synchronization contributed with 19.1 million of sales in the corresponding period. We reported 17.4 million of sales. Where, again, net sales last year included 14.1 million SEC of NRE fees. And then, of course, media accounted for the remaining balance of reported net sales. Operating earnings for the first six months of the year amounted to 48.9 million. and is an increase from 21.9 million reported last year. However, excluding items affecting comparability and foreign exchange rate differences, operating earnings amounted to 52 million for the current reporting period. That is to be compared with 24.3 million for the first six months of 2023. In operating margin terms, the reported operating earnings translated into reported operating margin of 15.4%. Now you need to compare that to 8.7% last year. And if adjusted for comparability, it translates to 16.3% this year to be compared to 9.6% last year. That improvement is primarily driven by increased revenue and the product mix for the period. which is, of course, a composite of Q1 where we had relatively high share of low margin hardware, and Q2 with a relatively large share of high margin software and support sets. The large software deal discussed in the Q2 section inevitably had some impact, but given that it's such a small fraction of the total revenue in the period, it is less material to explain the improvements. With that, before moving on, what does this really say then? Well, to me, it says that operations are growing, and they're growing profitably, and doing so also when excluding the largest software order published in Q2. It further tells us that the time synchronization business is starting to convert to current orders compared to revenue recognized from deals made in previous periods. So with that, I've kind of asked you to turn page to discuss operating expenses. And then let's start again with the second quarter, where operating expenses in total increased to 78.4 million from 67.6 in Q2 2023, which corresponds to reported increase just shy of about 11 million or about 10 million when adjusting for non-recurring items affecting comparability. For the change between the quarters to make sense, I think it's necessary to look at the individual items included in OPEX. So let's do that. First sales and marketing that amounted to 47.8 million to be compared to 38.5 million last year. Now that is an increase of about 9 million which is attributable to the strengthening of the single organization, the increased sales, of course, and investment in cloud and IP expertise. It also relates to administration that amounted to 17.8 million to be compared to 16.2 million, say, last year. Now, that is an increase of about 1.5 million and mostly attributable to strengthening of the organization. leading us with development that amounted to 12.7 million to be compared to 12.9 million last year. Hence, it's about the same level as Q2 last year. The drivers behind the reduction will reduce cost as a result of the moving R&D that we talked about last quarter from Camarilla in the U.S. to Stockholm, somewhat offset by lower capitalization, which in turn is driven by the phases in the current development projects. And developmentally, it really makes sense to talk about it as an expense if we also talk about the expenditures, i.e., the expenses if we add that capex for the period, which amounted to 36.5 million SEC or a decrease just short of 2 million as a result of the move of the RMD. Then it makes sense to talk about operating expenses for the six-month period. that in total increased 250.6 million from 129.4 million SEC in the first half of 2023. And that corresponds to a reported increase of about 21 million, or about 18 million if adjusting for non-recurring items affecting comparability. To put those amounts into perspective, it makes sense to look at them as a percentage of sales. While one can expect sales expenses to be somewhat, or at least to some extent, correlated with top line, administration seems to need to be expanded from time to time to adjust for scale and new requirements, but should have a flatter development curve, while R&D should be driven by investment decisions and be based on future payoffs. I urge you to view the information about operating expenses in the context of the graphs provided to the right of the slide. So again, going through the items and for the variances to make sense, let's talk first about sales and marketing that amounted to 89.2 million SEC to be compared with 74 million last year. That is an increase of about 50 million with the same drivers as in the quarter. Administration amounted to 35.2 million SEC to be compared to 31.3 million SEC last year. That is an increase of almost 4 million, but equally attributable to strengthening of the organization, revaluation of staff-related provisions, and projects aimed to meet future reporting requirements with higher efficiency while also laying the foundation for the plan and continuous growth. And development that amounted to 96.2 million SEC to be compared to 24.1 million SEC last year. has a slight increase when the drivers were the same as in Q2. Again, focusing on the expenditures, which amounted to 78.6 million, or an increase of a little more than 4 million, which is a net increase, actually, of component sourcing necessary to secure future R&D, batch sizes, timing, trade-offs, et cetera, and the move of R&D to Sweden. So what does that really say? Well, to me, it says that the expenses have increased, but given that marketing accounts for the larger part of the increase and that operating expenses as a percent of net sales have oscillated within a fairly constant range, the number indicates that the investments in sales and marketing have delivered top line. The same logic applies to development expenditures that have varied somewhat across quarters. but have been fairly constant as a percent of sales, indicating consciously managed investments in future products. So with that, if you could please turn to the next page to talk about what is always going to be my favorite topic, cash and conversion to cash. So we can then conclude that cash and cash equivalent at the end of the period amounted to 235.6 million SEC, to be compared to 266.3 million SEK at the end of Q2 2023. We can also conclude that the total cash flow for the second quarter amounted to minus 16.1 million SEK, while the cash flow for the corresponding quarter last year was 12.4 million. Now, that is a difference of 3.7. Since the cash before the quarter and that in the first six months of the year were influenced by the same drivers, they make sense to review in parallel. Both periods this year are driven by a positive cash contribution from operating activities and a negative contribution from working capital, where an increase in receivables driven by strong invoicing is somewhat offset by lower inventory liabilities. In other words, a base that will be converted to cash in the coming quarters. But somewhat reduced by tax payments, since we no longer have any tax loss carry-forwards that we can use to offset. Investment activities driven by R&D expenditure. Now, that's an investment for future cash-generating offerings. And financing activities mostly driven by repurchases of owned shares. So from that, we can conclude that the operations generate cash, but the growth, as it always does, ties up some of the funds in working capital to be converted to cash in later quarters. And that investments are continuously made into the company's future, to which Krister has spoken to and I think will continue to speak to. So with that, I hand over to you again, Krister.

Thank you, Annika. And before we move into the questions, yes, I'd like to sum up of the Q2. I mean, we are doing well financially, but also we have strength in our position in the market. So we have the 15 consecutive quarter of growth, close to 40%. And if you look at the net operating margin, it's close to 22%. So this is a record quarter, both in terms of sales and operating margin. So even as we have explained earlier, even if we excluded 30 million software order, the growth was above 15%. and with operating improve the operating profit year on year. We are doing market share and in media we are the self-evident part of it really cuts and we have an extremely strike position strong position within that and it always count when you have a live sport event then you need to trust the supplier and the product that you have installed. In time synchronization, conversion of POCs to contract has resulted in close to double digit number of customer. And that's based for the growth going forward with the customer when they start to expand the network and install our product at the same time. So we are a growing company and invest in the future. We are keeping up in our media products to grow with our existing customer. And we are focused on taking on new customers as we did in Q1, that we added three large customers. And we see even one of them have already replaced ordering in Q2. So they are continuing to use our product to build out the network. And we are... keeping investing growth pocket in the market. And I think that we have been good finding them and we are really investing for the long, big revenue, not the short, small revenue. So we are looking into the market, find growth pocket in the markets and really investing into them and make sure that we have a very competitive product when we are doing that. And time synchronization is our largest growth opportunity that we can see. It's a huge market and it's growing and we have a unique product that we can offer the market. And we are placing feet on the ground to capture growth opportunity across the globe. As we had already communicated, we have increased number of people like in India, in China, we have signed a reseller or a partner and we same in Saudi Arabia, in Middle East. So we are increasing our footprint globally, and we are doing that very carefully so we don't spend money that we don't see an opportunity relatively in deals. And of course, when we hire and develop the best people, most talented and committed crew. So that's like the benefit and the the drivers internally that we have an extremely strong and talent organization that's really pushing the business forward so with that i think we're moving over to two questions so let's look into questions um um the first question that we received is on the new cloud-based product nimble connect that we launched in the in the beginning of q2 and it's it's based on the existing nimble edge that we launched like a little bit more than two years but it's a more easy and simple not simple easier product for the customer to install which means that we can grow with the customer, that they start with the Nimble Connect. The installation is very easy. I mean, we are claiming that you can do it in like 5, 10, 15 minutes, and you can be up and running. And then you can grow your business, and when you're coming up to a larger deployment of the cloud-based product, you can seamlessly move over to the edge product that we had launched. earlier that have a larger capacity. And we can see that that's really paying off. I know that we immediately receive like double digits interest from customer and we have done the first installation during Q2. So that's a really interesting customer that we can grow with the customer and we can seamlessly uh increase the capacity on the cloud and the customer can have a product that fit into the requirement that they have and the capacity that they need we have like a question on the revenue coming from the Olympic. And as I mentioned, we have recognized some of the income in Q2 and some part in Q3, so it's divided Q2, Q3. I mean, we have that in our budget and we have, as you probably know, been a part of the Olympics already back in 2008. If you go back quite a few years, it was an important part of our business and our goals to be part of those larger events. But when we're now increasing revenue and we have a broader number of customers, those larger events like the summer games is not that strong driver as it has been in the past. It's important for us, but it's not like the major driver for our revenue in the business. But we are, of course, happy to be part of the Summer Games, and we have people on site, and it's a large event that we participate in them. Right. We have a question that we have stated that we are converting POCs into commercial customer. Yeah, I mean, we have converted customer during the quarter, but of course, we had converted customer earlier than that. But yes, we have converted, but we will not give any details, specifically number of conversions that we have done during the quarter. But I think it's a clear guidance that we are giving that we are closing to double digits number of customers. So that's an important part, of course, in that. We have also another question on the PUCs, and I think it's what about the old from North America, I think. Yes, we are proceeding on the customer commercial test that we are doing in America. So that is progressing well. So they are continuing to doing that, and so it's definitely going in the right direction. Also, the deal that we've done in Canada is also progressing well. So the North American market is going according to plan, and the announcement that we have been giving are still very active and progressing in the right direction. Yes, we also get the question, how do you find a new investor? relation manager, and we have. We will have an investment relation manager starting just after the summer holiday. So that will be a strong drive for communicate better to you shareholders. and we will be much more active in that budget. So that's definitely something that we have focused on, and we are glad that we hired a person coming in just after the summer. When are you planning to launch a volume for sync time? I mean, we are not giving forecasts on volumes going forward, but of course we are, like, With the customer that we are converting from piece to commercial customer, we're building the customer base of future growth. That's the idea that we are doing now. Even though that the volume is not rapidly increasing, over time that will create volume increase and growth around the Synthai. We have also received how the process of a new customer within Sync. I mentioned that in my presentation that all operators are thoroughly testing the synchronization, time synchronization product that we are offering them because that's a crucial service that they need to have or function they need to have. to have a network that can operate and definitely even when the operator moving more to industry solutions and more advanced solution that this is a key function that the customer will ask for that they have a reliable network. So it normally start with like a small PC within the labs and then it will move into the network and then it will move into like larger tasks that also sometimes are using in the 5G live network. So it's a number of different steps that you're going through, but no operator will take on this product without testing. It is nothing to do with NetInsight. It's nothing to do with our product. That's the normal procedure that all operators are doing. So that's the way that they normally take in products. So that's a new standard operation thing that the operators do. We have also a question on the APEC market, that it might have minor interest in 2024. No, on the opposite. We see that Q1 for APEC was growing very strong with increased sales in Q1. a little bit lower in Q2. Obvious when they have so strong Q1, they were a little bit lower in Q2. But we have seen a steady groove in APAC the last year, so we see that it will continue. And we have like a strong team. As you know, we have a Swedish guy that heading APAC that have been at NetEnsight earlier and a very strong position market and know the Asian market very well. So we have a strong organization and we see that the expected APEC will grow moving forward. We have also a question around the power grid market. And we have communicated earlier that we have a POC with one power grid company within Europe. And that POC is going well. And we see a progress in that. And we see that we have also increased our activity to look into partner within that market segment. So that is proceeding according to plan. And it's important for us to have a partner like that to make sure that we can see that we can develop our product that fit into like a power grid or smart grid environment. So that is going in the right direction and we are continuing cooperation with that power grid company in Europe. And we are also looking into how we can form the team around that to make sure that we can capture the market potential within the power grid segment. But this is still in the pre-study phase, so we haven't moved in fully with resources, and we will take the decision going forward, depending on the of course, the test that we are doing and the cooperation together with this. But so far, it's very positive and going in the right direction. I mean, we had a question about the potential within the media segment and how big is it. And of course, we don't do any forecast on that. I think you can see on the the historic numbers that we have been showing and we are continuing to growing that. So definitely we are taking market share, but that's, it's a big, big market that we are attracting. So we see that we have opportunity to continue to grow within the media segment. So the potential is of course, now when they are moving from over to IP based solutions and cloud, so that's the driver for investment from the, from the media operator and the media customer. And that will continue for many years going forward. So we are in the first phase of doing the move from over to IT-based product and cloud-based product. So that will continue for many years from now. Again, we get in. Question from the pilot in Canada and US, and I think everyone has been covering that, that it's going according to plan. Again, America question. Are there any more software deals in the pipeline? I mean, this is the normal way that we are doing our business, that the customer is installing the hardware. Some of the customers actually are buying the hardware because it takes like a few months or a quarter to install that. And when they have installed the product, then they are ordering the software. So that's like the drivers within our business. business model that we have the software and it's getting bigger and bigger part of the overall sales. So that definitely we will have more software deals. The unique one is that this was a large, it was a 30 million deal. So that was the unique with that. Not the way that we were taking the order or not the way that we're getting the order, it's more that it was the unique was the size of the order. definitely hoping for more or we will get more we get so that's obvious i mean when we are moving to new regions i mean this is an investment that we do like in india that we start with like um first you do a pre-study make sure that we have the right product and the right market condition like india it's like the one of the largest market for 5G, and it's expanding heavily so that we saw that we see an opportunity of doing that. So what we are doing right now in India is, of course, approaching the major three operator, and we are also looking into the product to get the product approved for the Indian market. So that's what we are doing. So sales will take time until we get that. This is the normal that I described earlier. It's a stepwise relation with the customer. Start with the PUC, then you move forward into like designing the network and so on. So that will take time until we see revenue involving coming in from the new market that we are centric. But it's important for us to be in that market because it's so large. and we see the need of our products in those markets as well. And we are finding very well-established safe people within the market to make sure that we get the right level of contact within the operator. Private networks is the question, yes. Yeah, we see definitely an opportunity in private networks market that we see that The operator can, of course, offer solution to private networks, but we see also private network that we can have a direct relation with. So private network is definitely a driver in the market. And as we communicated like in the China market, private networks is a growing part of the Chinese market. So that's something that can be a driver or is a driver going forward. You have a big partner with Tata. They will help you in the Indian business. Yeah, I mean, Tata is one of the biggest customers. We have a relation with them, but we cannot like relieve any business information around that. But they, of course, are strong in India. So, what are you most excited about into next year? You can... Next year, I mean, of course. I mean, it's so exciting when we see that we are growing and we see that we are growing the media business that we are soon into the double-digit number of commercial customer. So, it will be extremely interesting to see when they are really starting to invest and rolling out the network. So, that is so exciting to see that it's going in the right direction. So that is something that's really exciting. And the media business is continuing to grow and we are continuing to invest. We see opportunity into the market and we see opportunity to invest in the growth pocket in the market. So we are continuing doing that. So I think we are going in the right direction. We see the trend and be clear. And I'm very positive to the second half of this year and next year. So that was all the questions that we have right now. But if you have any questions that you would like to answer, you can just send them into our investor relation mailbox that we have. You can find the address on the website and you can send it in to us and we will try to answer them as quick as possible. So that's something that you can do whenever you like. Okay, thank you for now, and thank you for listening. And with this, I think we close the Q2 call, and I wish you all a fantastic summer, and see you when we report the Q3. So thank you all, and talk to you soon. Bye.