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Safello Publishes Interim Report for Q3 2021

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Stockholm, 29 October 2021 | Today, Safello Group AB (“Safello”) publishes the company’s interim report for the third quarter of 2021. The interim report can be found on safello.com/ir. The third quarter of 2021 showed an increase in net turnover of +80% compared with the same period in 2020. Net turnover amounted to SEK 146.1 million (81.0). Gross profit in the quarter was SEK 8.3 million (3.9), which is an increase of +111%. Highlights from the third quarter follows below and can be found in its entirety in the full report.

Summary of third quarter (July-September 2021)

  • Net turnover increased by +80% (year-on-year) and amounted to SEK 146.1 million (81.0).
  • Gross profit increased by +111% and amounted to SEK 8.3 million (3.9).
  • Operating profit before depreciation and amortization (EBITDA) amounted to SEK -1.5 million (1.1).
  • Operating profit amounted to SEK -2.5 million (0.6).
  • Net profit amounted to SEK -2.5 million (0.6).
  • Earnings per share (based on 20,449,600 shares) amounted to SEK -0.12.
  • The number of orders executed increased by +31% to 53,827 (41,036)

Summary of the first nine months (January-September 2021)

  • Net turnover increased by +160% (year-on-year) and amounted to SEK 542.9 million (208.5).
  • Gross profit increased by +188% and amounted to SEK 28.0 million (9.7).
  • Operating profit before depreciation and amortization (EBITDA) amounted to SEK -5.0 million (1.2).
  • Operating profit amounted to SEK -7.5 million (-0.3).
  • Net profit amounted to SEK -7.6 million (-0.3).
  • Earnings per share (based on 20,449,600 shares) amounted to SEK -0.37.
  • The number of orders executed increased by +43% to 170,888 (119,135)

Significant events during the quarter

  • On 5 July, Safello announced the launch of a private beta programme "Safello Subscription", which allows users to make regular purchases of cryptocurrencies over time. On 24 August 2021, Safello Subscription opened up for public beta testing, with a planned launch later in 2021.
  • On 12 August, Safello announced it had signed an agreement with Fireblocks, a platform for securing digital assets. The agreement gave Safello access to Fireblocks’ wallet infrastructure to support the introduction of a digital wallet.
  • On 25 August, the board of directors authorized management to increase Safello’s cryptocurrency holdings. SEK 10 million worth of cryptocurrency was acquired until the end of the quarter. 
  • On 30 August, Safello announced private beta testing of the Safello Wallet. On 27 September the beta test was extended to select customers.  

Significant events after the end of the quarter

  • On 5 October, Safello launched the Safello Wallet, which makes it possible to store cryptocurrencies with Safello. The launch simplifies the buy and sell process for the user, and eliminates the need for a self-managed physical or electronic wallet. 
  • On 11 October, Safello announced that the maximum transaction fees were lowered from 7% to 5% in order to lower the threshold for customers to try Safello’s products. 
  • On 18 October, Safello launched its first national marketing campaign “Make crypto boring”, with the purpose of building trust in the brand and attracting new customers to Safello. 

Comment from Frank Schuil, CEO and co-founder of Safello:

“Even with the cyclical Swedish summer slumber we had +80% net turnover growth compared with the same quarter last year, and we saw a healthy recovery in volumes in September. We have accelerated our efforts to move from being the Swedish market leader to becoming the dominant market player by reaching important milestones. Firstly, the launch of Safello Wallet makes us the first company in the market offering a seamless one-stop-shop experience to crypto in Sweden with BankID, Swish and storage. Secondly, we have permanently lowered our fees to a sustainable level but also introduced minimum fees to protect margins. Lastly we have launched our first marketing campaign to attract a wider audience and build brand awareness. Our growing team now boasts top talent from both fintechs and financial institutions and we continue to improve diversity and gender ratios, striving to be market leaders there as well.”

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 on 29 October 2021.

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

Certified Adviser
Corpura Fondkommission AB, info@corpura.se, +46 722 52 34 51

Safello is an online cryptocurrency brokerage. Registered as a financial institution with Finansinspektionen (Swedish FSA), Safello offers a secure way to buy and sell crypto, in seamless transactions at industry-leading speeds. Partners integrate Safello’s brokerage solution to their web and mobile applications. Operational since 2013 in Sweden, Safello is driving crypto adoption for users, with a safe, efficient and user-friendly platform

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