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August 11, 2022
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Bittnet Group posts gross profit of 2 million lei in the first six months of 2021, up 57%

Bittnet (BNET), a group of IT companies listed on the Main Market of the Bucharest Stock Exchange, posts consolidated turnover of 48 million lei in the first half of 2021 and a gross profit of 2 million lei, up by 57% compared to the same period of last year. During the first six months of 2021, the company carried out eight M&A transactions, two of which were cross-border, to consolidate its position in software development, training, and cybersecurity domains.

Our Group offers an increasingly wide range of IT&C services to customers, both in a traditional way – on project – but also recurrently or under the managed services paradigm. We intend to continuously expand our products and services portfolio, either by developing our companies and business lines, or through investments or acquisitions. We are not an investment fund, but we are constantly looking to acquire positions in companies to support the operational activity, no matter how big our stake would be. Even if the results produced by each of the companies in which we invest do not have regular values and evolutions every year, we strongly believe that our diversified portfolio will continue to thrive,” stated Mihai Logofatu (photo), CEO and cofounder of Bittnet Group.

The Technology Division, represented by Dendrio and Elian, reported sales of 42.40 million lei and an operating profit of 1.48 million lei. The gross margin of IT&C integration companies increased by 3.2%, to 7.4 million lei. The Education Division, which included Bittnet Training and Equatorial, recorded a turnover of 5.76 million lei and a gross margin of 3.17 million lei. The company delivered 102 course sessions and 56 individual sessions attended by 490 students in the first part of the year.

The higher share of services in the consolidated resulted in operating profit of 652,000 lei. As of June 30th, 2021, Bittnet Group recorded a gross profit of 2 million lei, 57% increase compared to the same period last year, double compared to the profit recorded for the entire year 2020. The companies in which Bittnet holds minority positions added a profit of 448,000 lei, while the financial result of 1.39 million lei furthered the company’s result in the first six months of this year.

The investments we have made in the previous period are the first bricks at the foundation of the Group’s “anti-fragility” as they allow us to achieve a significantly better overall result than in 2020, despite challenging operational environment. Equally important, we recorded these results with a positive cash flow, a reduced client collection period and a reduced total debt. Thus, on June 30th, 2021, we registered the most solid financial position in the Group’s history. The investments made during 2021 are not yet consolidated in turnover, but if all the transactions announced by us are completed successfully, the total revenues of the Group will reach 250 million lei by yearend, with 100 million over the budget of 150 million lei approved in April 2021,” stated Cristian Logofatu, cofounder of Bittnet Group.

In the first six months of the year, Bittnet Group carried out intense M&A activity, announcing the acquisition of stakes in eight companies in various fields, such as software development, training, and cybersecurity. Following the completion of these transactions, Bittnet Group will hold stakes in the Romanian companies The e-Learning Company, Computer Learning Center, Nenos Software, Nonlinear, ISEC Associates, ITPrepared, and two Czech companies, Servodata and DataScript. Through the new investments, the company is approaching the target of generating turnover of 100 million euros by 2024.

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