Bittnet Group posts consolidated revenue of RON 70 million in the first half of 2022
Bittnet (BNET), a group of IT companies listed on the main market of the Bucharest Stock Exchange, posted consolidated revenues of 70 million lei in the first six months of the year, a 45% increase compared to the same period in 2021, and a gross margin that reaches the value of 17.9 million lei, compared to 10.5 million lei in H1 2021.
In addition, the operating profit recorded in the first half of 2022 is more than tripled, to 3.6 million lei, compared to 1 million lei in the first half of 2021.
“Historically, as already confirmed by our results, as well as other listed IT issuers, most revenues and almost all profits are made in the last quarter of the year, with the first half always being the worst. In this context, our performance over the first six months of the year is excellent, already achieving 44% of turnover at consolidated level compared to 31% in 2021 and the other previous years. Our strong financials position us extremely well to pursue both internal sales generation and delivery process changes and expansion through M&A transactions. We believe that such transactions should remain a priority to increase the group’s footprint, especially given the success of previous mergers and acquisitions projects,” said 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), shows revenues of 58.6 million lei, an increase of 38% compared to the same period. last year, in a context of accelerated growth in the second quarter of service requests for all of the division’s companies, particularly in cybersecurity services, IT management services and business applications. This led to a 178% increase in operating profit, up to 4.1 million lei.
The Education division, which includes Bittnet Training, Equatorial, Computer Learning Center (CLC) and The eLearning Company, recorded revenues of 11.4 million lei, an increase of 97% compared to the same period last year . This division achieved a turnover of 7.2 million lei, an increase of 179% compared to the same period in 2021. In the first half of 2022, the division, in collaboration with Microsoft Romania, delivered courses on cloud and cybersecurity to more than 600 participants from various government agencies and ministries in the first major project in the public sector.
“We are a group of companies that offer an increasingly wide range of IT&C services to customers, both in a traditional (project-based) way, on a recurring basis, as well as in the managed services paradigm. One of the strategic pillars of development affirmed since the market introduction of AeRO in 2015 has been the continuous development of the product portfolio and the services offered. Regarding the results of the first half of 2022, if we analyze from an annualized perspective, over 12 months, TTM, the consolidated revenues exceed the value of 134 million lei, 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 reach the target profit for this year if the second half of the current year only registers a similar development to last year, without the growth registered in the first part of the year to H2 2022”, said Cristian Logofătu, co-founder of Bittnet Group.
In the first six months of the year, Bittnet Group completed negotiations regarding investments in TopTech and 2Net Computer. The two companies joined Dendrio in the Cloud & Infrastructure segment, obtaining this month the authorization of the Conseil de la concurrence. The consolidated financial results of the two companies will be observed from the fourth quarter of 2022. In the medium and long term, Bittnet Group estimates that they will generate revenues of at least 80 million lei per year.