Bittnet Group posts RON 70 million consolidated revenues in the first half of 2022

Bittnet (BNET), a group of IT companies listed on the Main Market of the Bucharest Stock Exchange, posts 70 million lei consolidated revenues in the first six months of the year, a 45% increase compared to the same period in 2021, and a gross margin which reaches the value of 17.9 million lei, compared to 10.5 million lei in S1 2021.

Also, the operating profit recorded in H1 2022 is more than triple, at 3.6 million lei, compared to 1 million lei in H1 2021.

“Historically, as already confirmed by our results, as well as other listed IT issuers, most of the revenues and almost all of the profit is made in the last quarter of the year, the first semester always being the poor one. In this context, our performance in the first six months of the year is excellent, already achieving 44% revenues at a consolidated level compared to 31% in 2021 and other previous years. Our strong financial statement positions us extremely well to continue both internal sales generation and delivery process changes and expansion through M&A transactions. We believe that such transactions must continue to be a priority to increase the group’s footprint, especially considering the success of the previous M&A projects,” stated Mihai Logofătu, CEO and co-founder of Bittnet Group.

The Technology Division, represented by Dendrio, Optimizor (formerly IT Prepared), Elian, Nenos, Nonlinear, and FORT (a new entity formed by GRX and ISEC), posts 58.6 million lei revenues, an increase of 38% compared to the same period last year, amid the accelerated growth in the second quarter of services requests for all companies within the division, manifested in particular for services in the field of cybersecurity, IT management services and business applications. This led to a 178% increase in operating profit, up to 4.1 million lei.

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The Education Division, which includes Bittnet Training, Equatorial, Computer Learning Center (CLC), and The eLearning Company, recorded 11.4 million lei revenues, a 97% increase compared to the same period last year. This division achieved sales of 7.2 million lei, a 179% increase compared to the same period in 2021. In the first semester of 2022, the division, together with Microsoft Romania, delivered cloud and cybersecurity courses for over 600 participants from various government agencies and ministries in the first large-scale project in the public sector.

“We are a group of companies that offer an increasingly wide range of IT&C services to clients, both in a traditional way (project based), recurrently, as well as in the paradigm of managed services. One of the strategic pillars of development affirmed since the listing on the AeRO market in 2015 has been the continuous development of the products portfolio and services offered. Regarding the results in H1 2022, if we analyze in an annualized perspective, trailing 12 months, TTM, the consolidated revenues exceed the 134 million lei value, compared to 100 million lei in the previous period. The gross margin registers an increase of more than 11 million lei, up to 31.7 million lei. The operating profit is more than three times higher, registering a value of 9.9 million lei. In other words, we can achieve the targeted profit for this year if the second half of the current year only registers a similar evolution to last year, without the growth recorded in the first part of the year in S2 2022,” stated Cristian Logofătu, co-founder of Bittnet Group.

In the first six months of the year, Bittnet Group completed the negotiations regarding the investments in TopTech and 2Net Computer. The two companies have joined Dendrio in the Cloud & Infrastructure segment, obtaining authorization from the Competition Council this month. The consolidated financial results of the two companies will be observed starting from Q4 2022. In the medium and long term, Bittnet Group estimates that they will generate revenues of at least 80 million lei per year.