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Safello Publishes Interim Report for Q2 2022

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Stockholm, 26 August 2022 | Today, Safello Group AB (“Safello”) publishes the company’s interim report for the second quarter (1 April-30 June) 2022. The report can be found on safello.com/ir. The quarter was characterized by a high level of activity in regard to executed orders, despite turbulence in the market.

“​​Safello now serves more than 2.5% of Sweden’s population. During the second quarter, we took action to trim the organization and ensure that we operate more efficiently. These cost cuts, both on staffing and external costs, will reduce our cost base during the second half of the year as we focus on bringing the company towards profitability. We understand that our moat is trust and want to leverage this to find innovative solutions that are hard to copy while incentivizing retail customers to stick with the safest fellow in crypto,” says Frank Schuil, CEO and co-founder of Safello. 

Today, at 11:30 CEST, Safello will present the interim report and conduct a Q&A session. The presentation can be followed on the company’s LinkedIn and YouTube.

Summary of the second quarter (1 April-30 June 2022)

  • Net turnover decreased by -28% and amounted to SEK 146.7 million (202.1).
  • Gross profit decreased by -27% and amounted to SEK 6.8 million (9.4).
  • Operating profit before depreciation and amortization (EBITDA) amounted to SEK -6.4 million (-4.8).
  • Operating profit amounted to SEK -12.6 million (-5.9).
  • Net profit/loss in the period amounted to SEK -12.6 million (-5.9).
  • Earnings per share based on the average number of shares (20,449,600 shares) amounted to SEK -0.62 (-0.29).
  • Earnings per share based on the average number of shares after potential dilution (21,440,668 shares) amounted to SEK -0.59 (-0.28).
  • The number of executed orders decreased by -4% to 56,980 orders (59,658).

Summary of the first six months (Jan-June 2022)

  • Net turnover decreased by -13% and amounted to SEK 350.9 million (396.8).
  • Gross profit decreased by -23% and amounted to SEK 15.3 million (19.9).
  • Operating profit before depreciation and amortization (EBITDA) amounted to SEK -9.5 million (-3.5).
  • Operating profit amounted to SEK -16.7 million (-5.0).
  • Net profit/loss in the period amounted to SEK -16.7 million (-5.0)
  • Earnings per share based on the average number of shares (20,449,600 shares) amounted to SEK -0.81 (-0.25).
  • Earnings per share based on the average number of shares after potential dilution (21,440,668 shares) amounted to SEK -0.78 (-0.24).
  • The number of executed orders in the period increased by 4% to 121,821 orders (117,061).
  • The Group had a cash balance of SEK 24.5 million at the end of the second quarter (compared to SEK 31.9 million at year-end 2021) and an additional SEK 4.9 million (10.1) in liquid crypto assets. The decrease in crypto assets is attributable to a write-down to market value at the end of the second quarter amounting to SEK 5.3 million (0.0). Investments in crypto assets are mainly booked in the parent company's, Safello Group AB’s, balance sheet.

Significant events during the quarter

  • Safello held its Annual General Meeting in Stockholm on April 27, 2022. A summary of all decisions is available in the AGM report from April 27 on the company's website.
  • The Annual General Meeting resolved, among other things, on the re-election of Frank Schuil, Jacob Jacobsson, Sepehr Alavi, Knut Pedersen and Johan Lorenzen as Board of Directors and the re-election of Jacob Jacobsson as Chairman of the Board. Safello announced in March that the Certified Advisor will be changed in July from Corpura Fondkommission AB to Amudova AB and because of that Christina Ploom, CEO and Senior Advisor at Amudova AB, was not available for re-election. Christina Ploom is therefore no longer a member of the Board of Directors.
  • Safello Group AB has terminated the agreement with ABG Sundal Collier ASA ("ABGSC") that ABGSC will act as a liquidity guarantor for Safello's share, which is listed on the Nasdaq First North Growth Market. The commitment ends on 31 August 2022, which will be the last day for ABGSC's service.
  • Since Q4 2021, Safello was the subject of an investigation by the Swedish Financial Supervisory Authority (“SFSA”, in Swedish Finansinspektionen) regarding the company's compliance with the money laundering regulations. On June 15, SFSA announced its decision that there is no reason for SFSA to take further action in connection with the investigation. The case was therefore written off.
  • In March, Safello AB (a wholly owned subsidiary of Safello Group AB) and Avanza Bank AB (a wholly owned subsidiary of Avanza Bank Holding AB) entered into a letter of intent (LOI) regarding a potential collaboration on cryptocurrency services with the ambition of examining a potential partnership for distribution of Safellos services via Avanza's platform. Safello was informed on June 16 that Avanza decided to cancel the process. The reason for the termination is that Avanza does not think that the market for crypto assets is currently sufficiently regulated for Avanza to be able to offer direct crypto investments via its platform.
  • In June, Safello relaunched Safello Business, a service aimed at companies that want to invest, exchange, store or withdraw digital assets. The new Safello Business has a smoother and faster onboarding process and technical updates for a better user experience. 
  • During the second quarter, Safello adjusted the organization to strengthen the resistance to reduced activity in the market in the longer term and to save costs. The total number of employees will decrease by five FTEs until the end of the year and will gradually reduce the cost base through the fourth quarter 2022. Furthermore, a review of external costs has been made to minimize external costs.
  • In the second quarter, Safello has valued its intangible crypto-assets at market value as of June 30 to give a fair picture as of the reporting date. The company has no plans to liquidate the assets.

Significant events after the end of the quarter

  • In July, Safello introduced a fee for withdrawing Bitcoin from Safello Wallet to other wallet addresses. Withdrawals were before free of charge but a fee has been introduced to be more in line with other players in the market.
  • The change of Certified Adviser from Corpura Fondkommission AB to Amudova AB, which was announced in March, was enforced on July 19.

Safello Group AB has decided not to print the report for environmental and cost reasons. 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 on 26 August 2022.

For more information please contact:
Johan Edin, CFO, ir@safello.com

Certified Adviser
Amudova AB is Safello’s certified adviser. Phone +46 9 546 017 58. E-mail: info@amudova.se

Safello is Sweden’s leading online cryptocurrency brokerage with the goal to make 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 has been listed in Nasdaq First North Growth Market since 2021. For more information visit www.safello.com.

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