Regulatory press release

Safello publishes year-end report for the fourth quarter 2024 and wraps up the year with a record-breaking quarter

Stockholm, 21 February 2025 | Today, Safello Group AB ("Safello") publishes the company's year-end report for the fourth quarter (1 October-31 December) 2024. The report is attached hereto and can be found on https://safello.com/investors/reports.

Summary of the fourth quarter (Oct-Dec 2024)

Net turnover increased by 40 % and amounted to SEK 241.3 million (171.9).
Gross profit increased by 118 % to SEK 20.3 million (9.3), of which the profit from the sale of long-term crypto assets accounted for SEK 1.5 million (0.0).
Operating profit before depreciation and amortization (EBITDA) amounted to SEK 7.6 million (0.1).
Operating profit amounted to SEK 7.1 million (2.3).
Net profit in the period amounted to SEK 7.1 million (2.3).
Earnings per share based on the average number of shares (20,449,600 shares) amounted to SEK 0.35 (0.11).
Earnings per share based on the average number of shares after potential dilution (21,572,847 shares) amounted to SEK 0.33 (0.10).
The number of orders increased by 35 % to 60,720 orders (44,974).
Average buy order value amounted to SEK 2,298 (2,048) and increased by 12 %, and average sell order value amounted to SEK 12,448 (19,409) and decreased by 36 %.
The total number of active customers amounted to 30,802 (25,183), of which the number of new active customers was 6,913 (6,505).

Summary of the full year (Jan-Dec 2024)

Net turnover increased by 37 % to SEK 767.0 million (561.1).
Gross profit increased by 46 % to SEK 52.3 million (35.7), of which the profit from the sale of long-term crypto assets accounted for SEK 3.0 million (0.0).
Operating profit (-loss) before depreciation and amortization (EBITDA) amounted to SEK 9.9 million (-2.0).
Operating profit (-loss) amounted to SEK 9.0 million (-0.3).
Net profit (-loss) in the period amounted to SEK 9.0 million (-0.4).
Earnings per share based on the average number of shares (20,449,600 shares) amounted to SEK 0.44 (-0.02).
Earnings per share based on the average number of shares after potential dilution (21,720,498 shares) amounted to SEK 0.41 (-0.02).
The number of orders decreased by 2 % to 194,568 orders (198,846).
Average buy order value amounted to SEK 2,355 (1,951) and increased by 21 % and average sell order value amounted to SEK 12,574 (11,194) and increased by 12 %.
The number of total active users amounted to 79,405 (83,876) and new active users amounted to 23,758 (32,772).
The Group had a cash balance of SEK 24.9 million (SEK 17.3 million December 31, 2023) at the end of the fourth quarter and in addition 10.4 BTC (17.8) and 112.6 ETH (110.2) in liquid crypto assets. The book value of the crypto assets was SEK 7.2 million (9.7) and the market value was SEK 14.8 million (10.1) as of the end of the fourth quarter, corresponding to an unrealized profit of SEK 7.6 million (0.4) at the end of the quarter. The change in book value during the period is primarily attributable to the parent company liquidating 7.4 BTC during the year, which generated a total profit of SEK 3.0 million (0.0).

Significant events during the fourth quarter

Safello announced the appointment of David Leeb as the new Chief Marketing Officer (CMO), effective January 9. David is part of Safello's management team and succeeded Arjun Shah.
Furthermore, Tara Abdi was appointed as the new Chief Compliance Officer (CCO), effective February 4, 2025.

Other events in the fourth quarter

In October, Safello entered into an agreement with Trustly, the leading player in "account-to-account" payments. Safello will integrate Trustly's solution to enable direct bank payments in SEK and EUR
In November, the Swedish Economic Crime Authority extended its framework agreement with Safello for an additional year, from the end of the current contract period (April 28, 2025), to April 28, 2026.
In November, Åsa Leander Skålén was elected to the board of directors of the subsidiary Safello AB.
In connection with her appointment, a share transaction was carried out in which Åsa Leander Skålén acquired a total of 100,000 shares in Safello Group AB at a price of 6.0 SEK per share, corresponding to approximately 0.49 percent of the company's share capital and voting rights. The seller in this transaction was Frank Schuil, Chairman of the Board of Safello Group AB.
Safello entered into an agreement with both LMAX Digital, a regulated institutional cryptocurrency exchange, and B2C2, a global leader in institutional trading of digital assets. Through these partnerships, Safello strengthens its liquidity network which is a key preparatory step as Safello expands its service offering with additional order types.
Safello added several cryptocurrencies to its platform, including Dogwifhat (WIF), Jupiter (JUP), Synthetix (SNX), Fetch.ai (FET), Yearn.finance (YFI), and WOO (WOO). These additions reflect Safello's commitment to providing a diverse range of investment opportunities.
Additionally, Redeye initiated commissioned research coverage of Safello. The coverage includes updates alongside quarterly reports and comments on significant company news.

Significant events after the end of the reporting period

On January 15, Safello issued a reverse profit warning due to a significant increase in EBITDA and operating profit during the fourth quarter of 2024. The improvement in results for the fourth quarter of 2024 is primarily attributable to increased revenues driven by a higher number of orders and larger volumes, as well as the strong price performance of bitcoin and other crypto assets.

Other events after the end of the quarter

Safello entered into an agreement with Talos, a provider of crypto trading software solutions. The agreement provides for the integration of Talos' API for smart order routing. The integration of Talos' smart order routing technology will enable Safello to optimize the execution of customer orders by connecting Safello to multiple liquidity providers and routing the orders to the liquidity providers offering the most competitive pricing and execution times.
In January Safello expanded its offering by adding five new cryptocurrencies on its platform: Arbitrum (ARB), Optimism (OP), Popcat (SOL), OFFICIAL TRUMP (TRUMP), and Official Melania Meme (MELANIA).

"The final quarter of the year marked the beginning of a new era for Safello, with a record result, fueled by renewed optimism in the crypto market. As bitcoin surpassed $100,000, we remained focused on regulatory compliance, product enhancements, and expanding our coin offering, as well as securing new strategic agreements with global liquidity providers. We have strengthened our team with top talent and added advanced technology to launch an enhanced trading experience in 2025. This year, we will actively work to establish an additional business area, and expand internationally, all while striving towards our vision of becoming the next-generation crypto bank," 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 CET on 21 February 2025.

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 400,000 users. The company is empowering financial independence by making crypto accessible to everyone. Safello offers a secure and easy solution for buying, selling, storing, as well as depositing and withdrawing cryptocurrencies directly from the blockchain - ensuring 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.