Safello publishes Interim Report for the Second Quarter 2024, a quarter with Increased Turnover and Framework Agreement with the Swedish Economic Crime Authority

Stockholm, 23 August 2024 | Today, Safello Group AB ("Safello") publishes the company's interim report for the second quarter (1 April-30 June) 2024. The report is attached hereto and can be found on  (https://safello.com/sv/investors/reports/)https://safello.com/investors/reports.

Summary of the second quarter (Apr-Jun 2024)

• Net turnover increased by 39 % and amounted to SEK 189.5 million (136.2).
• Gross profit increased by 12 % and amounted to SEK 8.6 million (7.7), including a profit from the sale of long-term crypto assets of SEK 0.8 million (0.0). Why gross profit increased less than the net turnover is primarily due to increased costs for transaction fees to payment service providers, which is a result of the efforts to strengthen the financial infrastructure of the platform.
• Operating profit/loss before depreciation and amortization (EBITDA) amounted to SEK -1.9 million (-2.1).
• Operating profit/loss amounted to SEK -2.4 million (-2.3).
• Net profit/loss in the period amounted to SEK -1.9 million (-2.3).
• Earnings per share based on the average number of shares (20,449,600 shares) amounted to SEK -0.09 (-0.11).
• Earnings per share based on the average number of shares after potential dilution (21,724,397 shares) amounted to SEK -0.09 (-0.11).
• The number of executed orders decreased by -11 % to 40,231 orders (45,069). 
• Average buy order value amounted to SEK 2,271 (2,034) and increased by 12 %, and average sell order value amounted to SEK 19,120 (11,962) and increased by 60 %.
• The number of total active users amounted to 21,090 (25,112) and new active users amounted to 4,192 (6,668).

Summary of the first six months (Jan-Jun 2024)

• Net turnover increased by 39 % and amounted to SEK 382.5 million (274.3).
• Gross profit increased by 19 % and amounted to SEK 22.7 million (19.1).
• Operating profit/loss before depreciation and amortization (EBITDA) amounted to SEK 2.7 million (-0.6).
• Operating profit/loss amounted to SEK 2.3 million (0.7). 
• Net profit/loss in the period amounted to SEK 2.8 million (0.7).
• Earnings per share based on the average number of shares (20,449,600 shares) amounted to SEK 0.14 (0.04).
• Earnings per share based on the average number of shares after potential dilution (21,440,668 shares) amounted to SEK 0.13 (0.03).
• The number of executed orders decreased by -14 % to 92,689 orders (108,227).
• Average buy order value amounted to SEK 2,436 (1,895) and increased by 29 % and average sell order value amounted to SEK 14,071 (9,133) and increased by 54 %.
• The Group had a cash balance of SEK 17.9 million (SEK 17.3 million December 31, 2023) at the end of the second quarter and in addition 12.8 BTC (17.8) and 111.1 ETH (110.2) in liquid crypto assets. The book value of the crypto assets was SEK 8.2 million (9.7) and the market value was SEK 12.2 million (10.1) as of the end of the second quarter, corresponding to an unrealized profit of SEK 4.0 million (0.4) at the end of the quarter. The change in book value during the period is mainly due to the parent company liquidating 5 BTC, resulting in a profit of SEK 1.5 million (0.0). 

Significant events during the first quarter

• On April 17, Safello published a reverse profit warning due to the strong increase in EBITDA and operating profit during the first quarter of 2024. 
• On May 8, Safello's annual general meeting was held in Stockholm. The main decisions are stated in the report from the annual general meeting on May 8 on the company's website. 

Other events in the quarter

• During April and May, Safello gradually added several cryptocurrencies to its portfolio, including Aave (AAVE), Avalanche (AVAX), Bitcoin Cash (BCH), Cardano (ADA), Compound (COMP), Dogecoin (DOGE), Fantom (FTM), Litecoin (LTC), Maker (MKR), Near Protocol (NEAR), The Sandbox (SAND), Solana (SOL) and The Graph (GRT). 
• The Swedish Police Authority extended its framework agreement with Safello from the end of the current contract period, September 3, 2024, to September 3, 2025, and the extension is made on unchanged contract terms. 
• Emelie Moritz, CEO of Safello, is one of 75 young executives and leaders selected when Sweden's management organization Ledarna ranks "Future Female Leaders." 
• Furthermore, at the end of April, Safello entered into a framework agreement with the Swedish Economic Crime Authority. The framework agreement between the parties was concluded following a public procurement process conducted by the Swedish Police Authority to meet the needs of the Swedish Police Authority, the Swedish Customs Service, and the Swedish Economic Crime Authority for cryptocurrency services, which Safello won in August 2023.
• In May, Safello launched the possibility for customers to receive payment to cards, issued by Visa and Mastercard, when selling cryptocurrency. The launch means more choices for Safello's customers, as well as an improved process for payments of sales orders in general.
• Safello recruited Łukasz Chachurski to Chief Technology Officer (CTO) starting June 17. Niklas Dusenlund left his role as Head of Engineering at the beginning of August.

"During the second quarter, Safello increased its revenue by 39 %, added 13 new cryptocurrencies to its offering, and entered into a framework agreement with the Swedish Economic Crime Authority following the Swedish Police Authority's public procurement that Safello won in 2023. Furthermore, Safello, as the only Nordic player, has been approved by VISA and Mastercard to handle crypto transactions from the sale of crypto directly to payment cards. The focus going forward is to continue growing the number of new active customers, add more features in our product, and work towards implementing the MiCA regulation and obtaining authorization as a regulated Crypto Asset Service Provider in the first half of 2025," 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 23 August 2024.

For more information, please contact
Viktoria Berglund Blohmé, Head of Finance, ir@safello.com

Certified Adviser
Amudova AB is Safello's certified adviser.

Safello is the leading cryptocurrency exchange in the Nordics, with over 376,000 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.