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Safello Publishes Interim Report for Q4 and the Financial Year 2021

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Stockholm, 16 February 2022 | Today, Safello Group AB (“Safello”) publishes the company’s interim report for the fourth quarter and the financial year 2021. The report can be found on safello.com/ir. The fourth quarter showed a record net turnover as a result of improved product portfolio and increased development capacity. Net turnover increased by +102% compared with the same period in 2020 and amounted to SEK 215.0 million (106.5). Gross profit in the quarter was SEK 8.9 million (6.0), an increase of +50%. The quarter is characterized by accelerated product development and strong growth in the mobile app. Highlights from the fourth quarter follows below and can be found in its entirety in the full report.

Summary of the fourth quarter (October - December 2021)

  • Net turnover increased by +102% (year-on-year) and amounted to SEK 215.0 million (106.5).
  • Gross profit increased by +50% and amounted to SEK 8.9 million (6.0).
  • Operating profit before depreciation and amortization (EBITDA) amounted to SEK -6.2 million (1.6). The negative result is largely driven by investments in marketing during the period, as well as headcount additions to strengthen the business in the long run. 
  • Operating profit amounted to SEK -7.2 million (1.2).
  • Net profit amounted to SEK -7.2 million (1.2).
  • Earnings per share based on the average number of shares (based on 20,449,600 shares) amounted to SEK -0.35.
  • Earnings per share based on the average number of shares after dilution (based on 21,440,668 shares) amounted to SEK -0.34.
  • The number of executed orders increased by +42% to 68,303 (48,214).

Summary of 2021 (January - December 2021)

  • Net turnover increased by +141% (year-on-year) and amounted to SEK 757.9 million (315.0).
  • Gross profit increased by +135% and amounted to SEK 36.9 million (15.7).
  • Operating profit before depreciation and amortization (EBITDA) amounted to SEK -11.2 million (2.8). The negative result is driven by non-recurring costs for the IPO during the year, costs for a marketing campaign in the fourth quarter, as well as headcount additions to strengthen the business in the long run.
  • Operating profit amounted to SEK -14.7 million (0.9).
  • Net profit amounted to SEK -14.7 million (0.9).
  • Earnings per share based on the average number of shares (based on 19,467,668 shares) amounted to SEK -0.76.
  • Earnings per share based on the average number of shares after dilution (based on 20,458,736 shares) amounted to SEK -0.72.
  • The number of orders executed increased by +43% to 239,191 (167,355).

Significant events during the quarter

  • On 5 October, Safello launched the Safello Wallet, which makes it possible to store crypto currencies 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. For more information on the transaction fees, please visit https://help.safello.com/en/articles/3311447-what-are-safello-s-fees
  • 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. In parallel a limited time offer with reduced fees for purchases to a Safello Wallet was introduced.
  • On 21 October, the Swedish Financial Supervisory Authority (SFSA) initiated an investigation into how Safello follows the Anti-Money Laundering rules. The investigation is a general investigation and according to the SFSA it encompasses Safello in its capacity as one of Sweden’s two market leading cryptocurrency exchanges. 
  • On 22 November, Safello launched Safello Subscription, which allows customers to connect their bank accounts for monthly purchases of cryptocurrencies, similar to a monthly savings scheme.
  • On 25 November and 15 December, Safello introduced the possibility for customers to buy, store and sell Chainlink, Polygon and Polkadot respectively.
  • On 21 December, it was announced that Emelie Mortiz will start as COO for Safello in March 2022, and that Andreas Kennemar will transfer into a role as Chief Business Development Officer. Emelie brings important experience from the financial industry, including positions at Avanza, Carnegie and Fondab. Andreas, with extensive experience from the crypto industry as well as senior positions at Swedbank and Handelsbanken, will focus on developing and professionalizing the business offering. 

Significant events after the end of the quarter

  • On 20 January 2022 Safello engaged ABG Sundal Collier ASA as liquidity provider in Safello’s share listed on Nasdaq First North Growth Market.

“​​We achieved a record high net turnover of SEK 215.0 million and 68,303 orders. The long term growth trend that started with the introduction of our Swish and BankID setup in 2018 remains intact. The launch of Safello Wallet has been successful and we saw strong growth in Safello Mobile. As per our prospectus we have prioritized this growth over profitability. In line with expectations we now see revenues catch up to the increased cost base validating this prioritization. As for the wider market landscape, we are observing a positive sentiment shift from financial institutions, much driven by retail demand and the forthcoming MiCA regulation. We believe that in 2022 this may open up the industry to wider institutional cooperation and collaboration. Aside from the development of the business, we have reignited our content strategy to create more venues for communication and education to all stakeholders. Safello invites everyone to engage with us in these channels and help us drive out the misinformation and misconceptions that are prevailing in our industry”, says Frank Schuil, CEO and co-founder of Safello.  

Today, at 12:00 PM CET, Safello will present the interim report and conduct a Q&A session during a livestream on the company’s LinkedIn and YouTube.

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 16 February 2022.

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 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 is listed at Nasdaq First North since 2021.

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