Bittnet Group reports revenues of 19.3 mln lei in the Q1 of 2020

Bittnet (BNET), a group of IT companies, listed on the AeRO market of the Bucharest Stock Exchange reported 19,3 million lei in consolidated revenues as of March 31st, 2020, an increase of 21% compared to the revenues from Q1 2019, and tripling of a gross margin. BNET shares will float on the Main Market of the Bucharest Stock Exchange in the next weeks, as the company has already submitted all the documentation required for the transfer to take place to the ASF.

“The results from Q1 2020 are the best first-quarter results in our history. The beginning of the year is generally the weakest period for us when the lowest revenues are registered. This year we had to additionally struggle with the turbulences caused by the pandemic, which hit Romania mid-March. We have reacted almost instantly by adapting our business model, and we came out strong, as our clients were eager to depend on our expertise to ensure their business continuity. Therefore, we registered an increase in revenues of 21% and for the first time in history, we ended Q1 with operating profit,” said Mihai Logofatu, CEO and co-founder of Bittnet Group.

“The positive results continued in April, as our sales grew by 150% compared to April 2019, while according to the recent barometer of SmartBill, local businesses have registered an average decrease of 19% of their revenues in that period. This evolution is mainly due to the high technical preparation of our team as our ability to rapidly react to the changing environment – two values that distinguish Bittnet Group on the local IT market,” added the co-founder of Bittnet Group.

The Education Division, which includes Bittnet Training and Equatorial, had by far the best Q1 in history. Revenues from the two organizations were 112% higher than in the first quarter of 2019 and reached 2,2 million lei, while the operating profit grew by 0,7 million lei. Following the announcement of the state of emergency, all Bittnet and Equatorial trainings were transposed onto the online working environment. This has provided the Group’s clients with an opportunity to continue the training programs despite the lockdown. As a result, only 10% of the classes were postponed or cancelled in the second half of March.

On the IT&C integration side, Dendrio and Elian have registered an increase in revenues of 14% as they reached 17 million lei. The operating profit of the technology division grew by 1,5 million compared to Q1 2019. Predicting the mass migration onto the remote working model in Romania, Dendrio launched #WorkfromHome initiative, providing customers and partners with free access to Microsoft and Cisco platforms alongside with technical expertise from Bittnet Group’s engineers. More than 40 companies applied to this offer between March and April. The adoption to the new working model continued in April, when Dendrio, the IT&C integration division of Bittnet Group launched Dendrio Shop and entered the e-commerce market.

For 2020, the Group aims for revenues of 125 million lei and a net profit of 2,5 million lei. In Q1 2020, the Group has secured and signed contracts in the total value of 30 million lei. Historically, the first quarter of the year has always been the weakest period for the group. Over the last years, Q1 has contributed to only 15% of the total consolidated revenue generated in a year.

Photo credits: Bittnet Fb page