Goobit Group AB publishes Year-end Report, 1 May 2022 – 30 April 2023
In order to better communicate with our international investors, Goobit Group AB (publ) has made the decision to publish our financial reports in English. This shift reflects our commitment to transparency and accessibility to all our stakeholders, regardless of their geographical location. For a Swedish summary of the report visit goobit.se.
The publishing of the company's Year-end report 2022/2023 has been announced by Goobit Group AB ("Goobit"). You can read the report by visiting goobit.se. Despite market swings, it was a vibrant quarter characterized by operational improvements and cost reduction efforts. This report highlights Goobit's lasting strength and adaptability in the face of uncertain market conditions. We welcome you to read the report in depth for a more thorough understanding.
Overview Financial Results for Goobit Group AB (publ) (“the Company”)
Q4, 1 February 2023–30 April 2023
– COMPARED WITH THE CORRESPONDING PERIOD OF THE PREVIOUS YEAR –
- Net sales amounted to 20.9 MSEK (31.6). The decrease is primarily due to the termination of banking services in mid-December 2021, which resulted in lower exchange volumes.
- Operating profit amounted to -3.9 MSEK (-4.3). The period includes consultant and lawyer costs attributable to the ongoing Swedish FSA (SFSA) investigation, which are considered non-recurring.
- Income after financial items amounted to -3.9 MSEK (-4.1).
- Earnings per share before and after dilution amounted to -0.03 SEK (0.03).
Full Year May 1, 2022 – April 30, 2023
– COMPARED WITH THE CORRESPONDING PERIOD OF THE PREVIOUS YEAR –
- Net sales amounted to 99.1 MSEK (360.2), representing a decrease of 72.5 percent.
- Operating profit amounted to -15.7 MSEK (-17.5). The operating profit has been burdened by consultant and legal fees attributable to the ongoing SFSA investigation of the company; these are deemed to be non-recurring.
- Loss after financial items amounted to -15.9 MSEK (-17.9).
- Loss per share after tax amounted to -0.11 SEK (-0.13).
Important Events During the Period
- The first test period of Goobit's new solution for direct bank payments has been successfully completed and is now offered to more customers. The goal is to offer all customers direct bank payments.
- Goobit has initiated a collaboration with Divly, Monetax, DLT Accounting, and Koinly to simplify the tax process for its customers.
- Goobit Group has signed a distribution agreement with NBX, the leading Norway-based exchange for digital assets. The companies form a strategic alliance to offer NBX Visa credit cards to the Swedish market.
- The company has taken a short-term loan to facilitate the management of working capital.
Important Events After the Period
- In May 2023, Goobit acquired the assets of Snowbank AB (BTCSWE), a well-regarded Swedish bitcoin exchange service registered with the Financial Supervisory Authority. The acquisition includes BTCSWE's brand, technology, and customer base which will be integrated into Goobit Group's operations.
- Goobit has decided to sell Nova Exchange's assets to further strengthen its position as a prominent bitcoin exchange. Technology related to Nova Exchange will still be fully available for Goobit. The sale also opens new opportunities for Goobit to enhance its offerings and partnerships, specifically BTCX, one of Europe's oldest and most trusted bitcoin exchanges, and AML Desk, a leading tool for complying with Anti-Money Laundering regulations in the crypto industry.
Fellow Shareholders and Bitcoin believers,
With great enthusiasm, I want to share not only the exciting events at Goobit Group over the past quarter, but also my fervor toward the bright future of Bitcoin and our company. I believe that with each of our business steps, we have positioned ourselves firmly for the ever-growing adoption of Bitcoin in the Nordics and on a global scale.
A perfect storm is brewing for Bitcoin and Bitcoin companies, and this technology and its enormous potential have never been more important, especially when you consider Sweden’s recent history.
As inflation has significantly impacted our spending capacity and the Swedish Krona continues to reach new all-time lows, Bitcoin represents an essential savings method and investment free from counterparty risk in a world where navigating through economic, financial, geopolitical, and societal changes becomes increasingly challenging.
As we survey the vast landscape of technology, it's impossible to ignore that cryptocurrencies, and Bitcoin in particular, stand as the exciting new frontier. They hold the potential not just to reshape our financial systems, but also to bring about significant shifts in our political and societal structures. While this vision may seem somewhat distant or overly futuristic right now, rest assured that we at Goobit are diligently paving the path to make Bitcoin accessible to all. We're rooted in the present but have our sights set on the future, ready to adapt and evolve as this revolutionary journey unfolds.
We are working hard to that end despite the fact that the Swedish financial infrastructure is moving in the opposite direction. It is enforcing industry-wide restrictions on Swedish banking infrastructure and electronic identification methods, leaving no Swedish or international bitcoin & digital asset company access to vital Swedish payment channels.
This makes other EU countries, which have already started their work to adopt the EU's crypto regulation MiCA, leapfrogging Sweden's role as a pioneering fintech innovation hub and possibly miss out on the financial innovation of the century.
We still believe Sweden can return to its innovative spirit and therefore, we have continued to strengthen our position as a leading player in the cryptocurrency sphere in Sweden and the Nordics. Furthermore, to ensure that we remain at the forefront of this paradigm shift, we have sharpened our focus on providing unparalleled Bitcoin-centric services during the past quarter.
However, we must remember that each paradigm shift is not an easy feat, especially when introducing a new system that aims to replace an old and inefficient one, unleashing new potential within our societies.
And this time is no different.
Financial industry incumbents are exploiting a lack of understanding and several severe misconceptions about our industry against Bitcoin companies.
However, I firmly believe that education and constructive dialogue with regulators and policymakers will help us overcome this challenge and unlock another significant growth potential for Goobit Group.
Hence, our recent efforts have focused on engaging policymakers in Sweden and Brussels, emphasizing the need for financial inclusion and non-discriminatory rules for all legal businesses. Our recent meeting with the Minister of Financial Markets, Niklas Wykman, strengthens our belief that positive change is indeed possible.
And we don’t stop here.
- At BTC Prague, the largest and most significant Bitcoin conference in Europe, we engaged in critical discussions with other industry players on topics such as 'Operation Choke Point' - a worldwide challenge where cryptocurrency businesses are losing banking relationships.
- The conference also offered a platform for intriguing discussions on potential partnerships and mergers with crypto companies all over Europe, Asia and Latin America, which likely will add long-term value to our businessIn this situation, our unique focus on Bitcoin might help us going forward, as regulators primarily focus on other crypto assets. Regardless, we are not alone in this battle, and it strengthens our chances of overcoming the current discriminatory policy towards Bitcoin companies, which is unacceptable in modern Sweden.
- Furthermore, starting in June, to shed light on the industry's challenges and the regulatory aspects of cryptocurrency, Goobit Group is organizing a series of events in Stockholm with education, speakers from established thought leaders and hands on crypto AML.
This type of education will take time but we are well positioned for this.
As overheard at BTC Prague, “You need to believe it’s just a cycle, otherwise you wouldn’t be in this business”.
We believe it's not just a market cycle but a paradigm shift cycle, with all its opportunities that can be gained and challenges that need to be overcome. This is why we are in this business, contributing to both Bitcoin adoption and increasing value for Goobit Group shareholders.
Founder and CEO Goobit Group AB (publ)
For further information, please contact:
Christian Ander, CEO, Goobit Group AB
Eminova Fondkommission AB | 08-684 211 10 | email@example.com
About BTCX / Goobit Group
Goobit AB was registered in 2012, is one of the world's first, and Sweden's leading crypto exchange companies. The company offers exchange services from SEK and EUR to the virtual currency’s Bitcoin and Ether, and has so far exchanged over 2.0 billion SEK. The company's best-known brands are BTCX Express and Standard BTCX. In addition to exchange, the company also offers services in anti-money laundering (AML), through AML Desk, and compliance for virtual currencies and digital assets. Goobit Group AB (publ) was registered in 2013 and includes the fully owned subsidiaries Goobit AB, Goobit Blocktech AB and Goobit Exchange AB. Goobit AB services are aimed at private individuals, corporate customers and financial institutions.
For more information, see Goobit's website www.goobit.se
This information is information that Goobit Group AB is obliged to make public pursuant to the EU Market Abuse Regulation. The information was submitted for publication, through the agency of the contact persons set out above, at 2023-06-15 18:00 CEST.