Bittnet Group posts consolidated revenues of 112,6 million lei in 2021
Bucharest, 25 February 2022 – Bittnet (BNET), a group of IT companies listed on the Main Market of the Bucharest Stock Exchange, posts consolidated revenues of 112.6 million lei for 2021, a 3% increase compared to the previous year, a gross margin of 24.5 million lei, an appreciation of 14% compared to 2020. The financial profit recorded by the company is 9.1 million lei, compared to the loss of 2.7 million lei in 2020, while the operating profit reached 7.3 million lei, 24% more than the previous year. The group reports a gross profit of 16.2 million lei, 11 times higher than 2020.
“The results published today continue our positive evolution since 2020, when the operating profit increased five times compared to 2019, and the bottom line by 5.5 million lei, confirming the ongoing growth strategy that we have proposed since the floating of our shares on the stock exchange. Bill Gates’ famous quote about people underestimating what can be done in ten years is more valid than ever. We believe that a successful investment activity can significantly amplify both the group’s development plan and generate a state of anti-fragility. Therefore, according to the planned M&A strategy, we will continue to invest in other companies, considering that in the seven years since the listing on the stock exchange, we have generated an annualized return of over 40% of the amounts invested. According to our estimates, we expect this positive trend to continue in the coming years, without making a promise about the actual value of returns,” stated Mihai Logofatu, CEO and co-founder of Bittnet Group.
The Technology division, represented by Dendrio, IT Prepared, Elian, Nenos, Nonlinear, ISEC, and GRX, reports a turnover of 98.4 million lei. Within this division, the Group obtained an increase in the gross margin generated, from 13.7 to 17.3 million lei and a significant increase of 167% in the generated operating profits in the amount of 7.7 million lei. Transactions for IT Prepared, Nenos, Nonlinear, ISEC, and GRX were completed in the third quarter, and the results of the respective companies were taken into account in the last quarter of 2021. The company expects demand for IT services and solutions covered by the portfolio of the Technology division to remain consistent.
The Education division, which includes Bittnet Training, Equatorial, Computer Learning Center (CLC), and The eLearning Company, recorded revenues of 14.2 million lei, up approximately 11%. In 2021, the Education division attracted 50% more customers than in 2020, clients who, according to the company’s estimates, will continue to buy products in the coming years. In 2021, the sales team managed over 1,500 opportunities, of which 676 were won. Also, the company is currently working on six opportunities to raise European funds for the development of projects in the area of education, with a total value estimated at approximately 12 million lei.
“2021 was the most active year in terms of our M&A projects. We have managed to complete five new investments, IT Prepared, the first investment in the area of managed infrastructure services, Nenos & Nonlinear, through which we consolidated our position in the area of software development and artificial intelligence, CLC, through which we expanded our certification portfolio, especially in the cybersecurity sector, ISEC and GRX, which mark a new stage in our development, by creating a cybersecurity division at the group level. At the same time, we have had our first exit by selling the Autodesk Software division, part of the Dendrio company. Therefore, considering the completed transactions, we believe that we have taken a major step towards our goal for 2024 – 500 million lei turnover at group level,” stated Cristian Logofatu, co-founder of Bittnet Group.
Regarding the issuer’s activity on the capital market, the liquidity of BNET shares remained high in 2021, registering an average monthly value between 5 and 6 million lei. At the end of 2021, the number of Bittnet Group shareholders increased, exceeding 4,100 individuals and legal entities, of which 12 are investment funds, and 60 are legal entity investors.
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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.