Romanian group Bittnet moves to a net loss in the first half

BUCHAREST (Romania), August 29 (SeeNews) – Romanian IT group Bittnet [BVB:BNET] said it closed the first half of 2022 with a net loss of 557,529 lei ($114,390/114,402 euros), compared to a net profit of 1.58 million lei recorded for the same period last year.

Bittnet’s operating profit tripled for the year to 3.6 million lei in the first six months of the year, the company said in an unaudited financial report filed Friday with the Bucharest Stock Exchange, BVB.

Bittnet’s total revenue from customer contracts increased to Lei 69.9 million at the end of June, from Lei 48.1 million at the end of June 2021.

The technology division, represented by Dendrio, Optimizor, Elian, Nenos, Nonlinear and FORT, posted revenues of 58.6 million lei in January-June, up 38% year-on-year, due to accelerated demand services in the areas of cybersecurity, IT management and business. apps.

The education division, which includes Bittnet Training, Equatorial, Computer Learning Center (CLC) and The eLearning Company, recorded revenues of 11.4 million lei, up 97% compared to the same period last year. In the first half of 2022, the division, in collaboration with Microsoft Romania, delivered cloud and cybersecurity courses to more than 600 participants from various government agencies and ministries as part of the first large-scale project in the public sector.

“Historically, as our results already confirm, as well as other listed IT issuers, the bulk of revenues and almost all of the profits are made in the last quarter of the year, with the first half of the year always being the worst. In this context, our performance in the first six months of the year is excellent, already reaching 44% of turnover at consolidated level compared to 31% in 2021 and the other previous years”, declared the CEO and co- Bittnet Group founder Mihai Logofatu in a separate press release.

“Our strong financial position positions us extremely well to pursue both internal sales generation and delivery process changes and expansion through M&A transactions. We believe these transactions should continue to be a priority to grow the group’s footprint, especially given the success of previous merger and acquisition projects.”

In the first six months of the year, Bittnet Group acquired solutions and services provider 2Net and IT&C integrator Toptech. The consolidated financial results of both companies will be included in the consolidated balance sheet for the last quarter of this year. In the medium and long term, Bittnet Group estimates that the two companies will generate total revenues of at least 80 million lei per year.

Founded in 2007, Bittnet is an IT solutions and training group. It employs more than 200 people in 12 subsidiaries.

Shares of Bittnet traded down 2.26% to 0.3030 lei per share at 1024 CET on Monday, on the BVB.

(1 euro = 4.8734 Romanian lei)

Ann J. Cox