Bittnet Group posts a gross profit of 10.8 million lei in the first nine months of the year
Bucharest, 12 November 2021 – Bittnet (BNET), a group of IT companies listed on the Main Market of the Bucharest Stock Exchange, posts consolidated operating revenue of 85.4 million lei in the first nine months of 2021, 9.6% higher compared to the same period of 2020 and a gross profit of 10.8 million lei, almost 13 times bigger than in the first nine months of 2020.
“At the date of publication of this report, we are in the middle of the fourth quarter, which historically contributes, on average, with 40% to the annual turnover. The fact that in the first nine months of the year, we have already generated the profit budgeted for the entire 2021 does not mean we will slow down our work pace, but on the contrary, we believe that «the match is played until the 90th minute». We are looking forward to capitalizing at maximum the results of the transformation of the operational models implemented during this year. We have been operating in an unfavorable economic environment for over 18 months, firstly due to the COVID-19 crisis, the economic contraction produced by the measures taken by governments, the decrease in demand for one of the Group’s essential products – classroom training, followed by semiconductor crisis. Our whole organization faced many other challenges, but the financial stability has allowed us to quietly build the new operational model from which we begin to reap the rewards,” stated Mihai Logofatu, CEO and co-founder of Bittnet Group.
The Technology Division, represented by Dendrio and Elian, reported a turnover of 73.8 million lei. The gross margin of IT&C integration companies increased by 40%, up to 13.7 million lei, resulting in an operating profit of 7.2 million lei, 332% higher compared to the first nine months of 2020. The Education Division, which includes Bittnet Training and Equatorial, recorded a turnover of 8.1 million lei and a gross margin of 4.1 million lei. In the third quarter, the sales team managed over 300 opportunities, generating potential contracts worth over 7 million lei.
“The profit for this quarter is higher than the total annual turnover generated by Bittnet’s in the first eight years of company’s existence. Also, in the third quarter of 2021, we completed five of the already announced transactions – Nenos, Nonlinear, ISEC, Computer Learning Center, and IT Prepared, which will generate results in the fourth quarter of 2021. We have also advanced in the negotiation processes for the other transactions – Servodata, Datascript, Top Tech. If all these transactions are successfully concluded, we will start the 2022 with a business capacity of generating approximately 250 million lei in revenue,” stated Cristian Logofatu, co-founder of Bittnet Group.
Regarding the transactions completed in the third quarter of 2021, the five companies, Nenos, Nonlinear, ISEC, Computer Learning Center, and IT Prepared have entered the operational and financial integration process. The management estimates that these companies will be aligned with the Group’s standards by the end of 2021. In the future, Bittnet Group intends to carry out four or five other M&A transactions, to further strengthen Group’s presence both in the classic IT&C integration activity and in the cybersecurity field.
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About Bittnet Group
Bittnet was founded in 2007 in Bucharest, by brothers Mihai and Cristian Logofatu, as a training and IT solutions company in Romania andabroad. Today, Bittnet is a group of IT companies that include the following brands: Bittnet Training, Dendrio, ELIAN Solutions, Equatorial Gaming, The eLearning Company, Softbinator, ISEC Associates, Computer Learning Center, IT Prepared and Nenos Software. The Bittnet Group is listed on the Main Market of the Bucharest Stock Exchange under the symbol BNET. As of March 22, 2021, BNET shares are included in two global indices: FTSE Global Micro-Cap and FTSE Total-Cap.
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