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December 9, 2022

Bittnet Group targets 125 million lei in revenues in 2020 and a net profit of 2,5 million lei after adjusting forecasts amid COVID-19 crisis

Bittnet Group (BNET), a group of companies providing IT Training as well as IT&C integration solutions, has published its budget and forecasts for 2020.

The Technology Division of the group, represented by Dendrio and Elian, is expected to remain the main growth vector, bringing revenues of 107 million lei and gross turnover of 22 million lei in 2020. On the education side, the IT Training Division, represented by Bittnet Training and Equatorial, is expected to bring 18 million lei in revenues, with a gross margin of 11 million lei.

The Group estimates it will reach consolidated revenues of 125 million lei in 2020, alongside an EBITDA of 9.5 million lei and a net profit of 2.5 million lei. The EPS (Earnings Per Share) indicator is predicted at 1.27 bani taking into account an estimated number of 200 millions of Bittnet shares after registering the capital increase with 7 free shares to 10 shares held, which is subject to the approval of the shareholders at the General Meeting scheduled in April.

“Clearly, the uncertainty about the general evolution of the economy, the confidence of people and companies in the future, generated by the state of emergency established as a result of the pandemic, lessens our ability to make forecasts, and that is why we have tempered our growth plans for only 25% for this year. On the other hand, we believe that the solutions we offer are even more relevant in this economic environment, and thus the demand for them will not decrease, but on the contrary it will grow. We could even dare to say that the current context has significantly sped up the digital transformation of Romanian companies, something we expected to take place in the course of next 3 years, but which in fact has happened in the course of past 3 weeks” said Mihai Logofatu (photo L), CEO and Chairman of the Board at Bittnet.

In first weeks of March, Dendrio launched the “Work from Home” initiative, which offered, together with Microsoft and Cisco partners, free access for 6 months for Romanian entrepreneurial companies to the technology needed to migrate to work from home model. In the 3 weeks since the initiative was launched, Dendrio has supported over 40 companies to make this transition from a technological point of view.

Despite the COVID-19 context, the Group maintains its plans to continuously develop its services and products offer in 2020, proposing to the shareholders an investment budget of 10 million lei. In the first place, the investment will be directed into development and promotion of proprietary products and solutions, including the launch of UXI, the learning management system for the Group’s strategic clients as well as the public release of the games developed by Equatorial, especially Bona Fides Agency game built together with Microsoft.

Bittnet is currently undergoing a capital increase operation, during which it intends to raise up to 9 million lei, financing which will be used primarily for the further development of the business. Following the completion of the operation, the company will then finalize the process of transferring Bittnet to the Main Market of the Bucharest Stock Exchange.

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