Safello

Stockholm, 17 November 2023 | Today, Safello Group AB (“Safello”) publishes the company’s interim report for the third quarter (1 July–30 September) 2023. The report can be found on safello.com/ir. In the third quarter, there has been stable activity with end of year tailwinds with Swish and Police Authority procurement. 

Summary of the third quarter (July–September 2023)

• Net turnover decreased by -17% and amounted to SEK 115.3 million (138.8).
   
• Gross profit decreased by -19% and amounted to SEK 7.3 million (9.0).
   
• Operating profit before depreciation and amortization (EBITDA) amounted to SEK -1.5 million (-0.9).
   
• Operating profit amounted to SEK -3.4 million (-1.9). 
   
• Net profit/loss in the period amounted to SEK -3.5 million (-1.9).
   
• Earnings per share based on the average number of shares (20,449,600 shares) amounted to SEK -0.17 (-0.09).
   
• Earnings per share based on the average number of shares after potential dilution (22,594,273 shares) amounted to SEK -0.15 (-0.09).
   
• The number of executed orders decreased by -17% to 45,128 orders (54,097).

Summary of the first nine months (January–September 2023)

• Net turnover decreased by -20% and amounted to SEK 390.2 million (489.7).
   
• Gross profit increased by +8% and amounted to SEK 26.4 million (24.3).
   
• Operating profit before depreciation and amortization (EBITDA) amounted to SEK -2.1 million (-10.4).
   
• Operating profit amounted to SEK -2.7 million (-18.6). 
   
• Net profit/loss in the period amounted to SEK -2.7 million (-18.6).
   
• Earnings per share based on the average number of shares (20,449,600 shares) amounted to SEK -0.13 (-0.91).
   
• Earnings per share based on the average number of shares after potential dilution (22,594,273 shares) amounted to SEK -0.12 (-0.87).
   
• The number of executed orders decreased by -12% to 154,048 orders (175,918).
   
• The Group had a cash balance of SEK 17.8 million at the end of the third 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 7.3 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 7.3 million, due to a negative adjustment to the market value by SEK 0.9 million in comparison to the book value as of June 30 that amounted to SEK 8.2 million.

Significant events during 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.
• In September, Safello announced the integration of Apple Pay and Google Pay on its platform, expanding its payment options and providing customers with a seamless and secure method to purchase cryptocurrencies.
• In September, Safello entered into a framework agreement with the Swedish Police Authority. The framework agreement between the parties is a result of being selected as the sole provider of cryptocurrency services in the Police Authority’s public procurement process.
• In September, Safello entered into a framework agreement with the Swedish Customs Office. The framework agreement between the parties is a result of being selected as the sole provider of cryptocurrency services in the Police Authority’s public procurement process. 

Significant events after the end of the quarter

• The value on the Group’s long term crypto assets increased significantly after the end of this quarter and was estimated on Oct 27, 2023 to a total value of SEK 12,240,691.
• In November, Safello entered into an agreement regarding Swish, which enables Safello to offer Swish as a payment method for buy and sell orders on Safello’s platform. In addition to the Swish services, Safello will be provided with additional banking services connected to handling the Swish payment service. 

 “Winning the public procurement and exclusively serving the Swedish Police Authority with cryptocurrency exchange services is a great testament to Safello’s market leading position in the Nordics. In combination with being the only crypto company supporting Swish as a payment method, we are ready to increase our market share before we extend our offering beyond Sweden after the MiCA implementation,” 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.

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 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 17 November 2023.

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

Certified Adviser
Amudova AB is Safello’s certified adviser.

Safello is the leading cryptocurrency exchange in the Nordics, with over 347,000 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.