Safello

Stockholm, 25 August 2023 | Today, Safello Group AB (“Safello”) publishes the company’s interim report for the second quarter (1 April–30 June) 2023. The report can be found on safello.com/ir. The quarter has been eventful with focus on broadening Safello’s financial infrastructure and partnerships. 

Summary of the second quarter (April-June 2023)

• Net turnover decreased by -6% and amounted to SEK 136.9 million (145.7).
• Gross profit increased by +13% and amounted to SEK 7.7 million (6.8).
• Operating profit before depreciation and amortization (EBITDA) amounted to SEK -2.1 million (-6.4).
• Operating profit amounted to SEK -2.3 million (-12.6).
• Net profit/loss in the period amounted to SEK -2.3 million (-12.6).
• Earnings per share based on the average number of shares (20,449,600 shares) amounted to SEK -0.11 (-0.62).
• Earnings per share based on the average number of shares after potential dilution (21,440,668 shares) amounted to SEK -0.11 (-0.59).
• The number of executed orders decreased by -21% to 45,069 orders (56,980).

Summary of the first six months (January-June 2023)

• Net turnover decreased by -22% and amounted to SEK 274.9 million (350.9).
• Gross profit increased by +24% and amounted to SEK 19.1 million (15.3).
• Operating profit before depreciation and amortization (EBITDA) amounted to SEK -0.6 million (-9.5).
• Operating profit amounted to SEK 0.7 million (-16.7).
• Net profit/loss in the period amounted to SEK 0.7 million (-16.7).
• Earnings per share based on the average number of shares (20,449,600 shares) amounted to SEK 0.04 (-0.81).
• Earnings per share based on the average number of shares after potential dilution (21,440,668 shares) amounted to SEK 0.03 (-0.78).
• The number of executed orders decreased by -11% to 108,920 orders (121,821).
• The Group had a cash balance of SEK 17.7 million at the end of the second quarter (SEK 21.3 million at year end 2022) and in addition 18 BTC (18) and 110 ETH (110) in liquid crypto assets. The market value of the crypto assets was SEK 8.2 million (SEK 4.9 million at year end 2022) at the end of the quarter. The book value at the end of the quarter was SEK 8.2 million (7.4), representing a positive adjustment of the book value by SEK 0.8 million.

Significant events during the quarter

• In April, Safello entered into an agreement with BCB Group, a global infrastructure and payment service provider for digital assets firms. The usage of BCB Group’s services aims to complement and strengthen Safello’s trading and settlement infrastructure.
• Handelsbanken terminated Safello’s access to the payment services Swish Handel and Swish Företag in April. 
• In May, Safello held its Annual General Meeting (AGM) in Stockholm. A summary of all decisions is available in the AGM minutes from May 4 on the company’s website.
• The AGM resolved, among other things, on the re-election of Frank Schuil, Jacob Jacobsson, Sepehr Alavi and the election of Viktor Fritzén as Board of Directors. Frank Schuil was elected as Chairman of the Board. The AGM decided on  a long term incentive program for board members and employees and/or consultants. 
• Safello announced in May that instant payments are available as a payment method for transactions. Safello’s customers can securely purchase digital assets through instant payment.
• In June, Safello entered into an agreement with Worldpay to extend payment methods on the platform and in the mobile app. Worldpay is a global leader in payments processing technology and solutions, and wholly owned by FIS Global.
• In June, Safello entered into an agreement with Januar, to broaden the financial infrastructure on Safellos platform. Januar is known for its innovative payment processing solutions, empowers businesses to accept multiple payment methods specializing in offering business accounts that seamlessly integrate decentralized finance solutions into traditional financial structures.
• In June, Safello was invited by The Swedish Police Authority to participate in the procurement of a cryptocurrency exchange to be the nominated supplier of cryptocurrency services to the Swedish Police, the Swedish Customs Office and the Swedish Economic Crime Authority.
• Safello announced in June that it will change its banking partner due to Handelsbanken’s termination of Safello’s business relationship. The decision means that Handelsbanken will cease the provision of bank accounts and ancillary services for the group. The termination will take effect earliest 30 September 2023.
• In June, Safello entered into an agreement with Circle in order to offer Euro Coin, Circle Internet Financial’s fully-reserved, euro-backed stablecoin. Safello’s focus on stablecoins has increased as the use cases have matured significantly.

Significant events after the end of the quarter

• In July, Safello entered into an agreement with Finshark, a Swedish open banking company providing Safello with payment initiation services for instant payments and payouts. Finshark was founded in Sweden in 2019 and licensed as a payment institution under the SFSA (Finansinspektionen).
• Safello was chosen in August by The Swedish Police Authority as the exclusive supplier of cryptocurrency services to ensure the needs of the Swedish Police, the Swedish Customs Office and the Swedish Economic Crime Authority on a national basis, with a term of maximum 4 years.

“The last quarter has been focused on building redundancy with banking partners as well as payment methods and rebuilding the infrastructure across our entire platform. The path to profitability for Safello is prioritized in combination with innovation to find new business areas and break out moments. As we look ahead our focus is to keep the momentum as the market leader for retail investors by strengthening the customer experience across the platform combined with adding new business areas to increase revenue streams. We see continued user growth on the retail side which proves that customers value a safe, reliable and compliant platform for their crypto trading,” says Emelie Moritz, CEO of Safello.

For environmental and cost reasons, Safello Group AB has decided not to print the report. A printout may be distributed to shareholders upon request.

###

This information is such that Safello Group AB is required to disclose in accordance with the EU Market Abuse Regulation. The information was provided by the contact person below, for publication at 08.00 CEST on 25 August 2023.

For more information, please contact
Emelie Moritz, CEO, ir@safello.com

Certified Adviser
Amudova AB is Safello’s certified adviser. Phone +46 8 546 017 58. E-mail: info@amudova.se

Safello is the leading cryptocurrency exchange in the Nordics, with over 320,000 users.  The company is empowering financial independence by making crypto accessible to everyone. Safello offers a secure way to buy, sell and store crypto in seamless transactions at industry-leading speeds. Operating in Sweden, Safello has been registered as a financial institution with Finansinspektionen (Swedish Financial Supervisory Authority) since 2013 and is listed at Nasdaq First North Growth Market since 2021. For more information visit www.safello.com.