Safello publishes Year-End Report 2023 and presents positive EBITDA

Stockholm, 23 February 2024 | Today, Safello Group AB (“Safello”) publishes the company’s year-end report (1 October–31 December) 2023. The report is attached hereto and can be found on safello.com/ir.

Summary of the fourth quarter (Oct-Dec 2023)

• Net turnover increased by 18 % and amounted to SEK 171.2 million (145.2).
• Gross profit increased by 17 % and amounted to SEK 9.3 million (8.0). 
• Operating profit before depreciation and amortization (EBITDA) amounted to SEK 0.1 million (-2.0).
• Operating profit amounted to SEK 2.3 million (-3.0).
• Net income in the period amounted to SEK 2.3 million (-2.9).
• Earnings per share based on the average number of shares (20,449,600 shares) amounted to SEK 0.11 (-0.14).
• Earnings per share based on the average number of shares after potential dilution (22,253,165 shares) amounted to SEK 0.10 (-0.14).
• The number of executed orders decreased by -21 % to 44,798 orders (56,884).

Summary of the full year (Jan-Dec 2023)

• Net turnover decreased by -12 % and amounted to SEK 561.1 million (634.9).
• Gross profit increased by 10 % and amounted to SEK 35.7 million (32.4).
• Operating profit before depreciation and amortization (EBITDA) amounted to SEK -2.0 million (-12.4).
• Operating profit amounted to SEK -0.3 million (-21.5).
• Net profit/loss in the period amounted to SEK -0.4 million (-21.5).
• Earnings per share based on the average number of shares (20,449,600 shares) amounted to SEK -0.2 (-1.05).
• Earnings per share based on the average number of shares after potential dilution (21,783,475 shares) amounted to SEK -0.02 (-1.00).
• The number of executed orders in the period decreased by -15 % to 198,846 orders (232,802).
• The Group had a cash balance of SEK 17.3 million at year end (compared to SEK 21.3 million at year end 2022) and an additional 18 BTC (18) and 110 ETH (110) in liquid crypto-assets. The crypto-assets are booked at market value as of year end, which amounts to SEK 9.7 million (4.4). The investments in crypto-assets are mainly booked in the parent company's balance sheet. 

Significant events during the quarter

• On November 1, Safello entered into an agreement with a Swedish bank regarding Swish, which from November 23 again enabled Swish as a payment method for buy orders on Safello's platform.
• In November, Safello entered into a partnership with the Lund University School of Economics and Management for collaboration in conducting research within the field of cryptocurrencies.
• In December, transactions were made in the company's stock for a total of 1,375,425 shares at an average price of SEK 2.1 per share, corresponding to 6.73 percent of the share capital and votes in the company. The CEO Emelie Moritz and Chairman of the Board Frank Schuil participated in the transaction together with two private investors. Northzone, a venture capital fund, was the seller of the shares.
• As of December 11, Safello terminated the agreement with the Swedish payment service provider Finshark with immediate effect. The agreement was entered into in July for the purpose of providing Safello with payment services. The services were never activated.  

Significant events after the reporting period

• Safello has entered into an agreement with the Nordic Blockchain Association (NBA) about an official partnership. The NBA, which is a non-profit organization, is the largest professional web3 network in the Nordics. The organization is dedicated to fostering innovation and growth in the blockchain industry as well as facilitating the largest professional web3 network in the Nordics.
• In January, Safello launched the feature to execute a sell order and receive a payment via Swish. In the past, when selling, customers have had their money paid out via traditional bank transfers, which meant that the transfer took at least one banking day. The new feature significantly improves the payout process on Safello's platform, since all sell orders up to SEK 150,000 will be paid out approximately three times faster compared to before.
• As of February, the business relationship with Handelsbanken has been completely terminated in accordance with what was previously communicated and Safellos has transitioned to its new Swedish banking partner. The migration took place in accordance to plan and without any negative operational impact.

“I’m proud to present a positive result for the fourth quarter, in line with the expectations of meeting the full effect of cost savings implemented in the past 18 months. During the fourth quarter the crypto market got renewed momentum and turned positive in combination with Safello’s re-implementation of Swish as a payment method on the platform. With the groundwork of securing a stable financial infrastructure on the platform and the addition of several payment methods behind us, we will rapidly move forward adding new features and focus on enhancing the product with the ambition to be competitive on a global scale. ”  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 23 February 2024.

For more information, please contact
Viktoria Berglund Blohmé, Head of Finance, [email protected]

Certified Adviser
Amudova AB is Safello’s certified adviser.

Safello is the leading cryptocurrency exchange in the Nordics, with over 358,000 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.