Bittnet Group announces interim results for Q1 2023: “We are on track to meet our recently established efficiency and profitability targets for 2023”
Bittnet Group Q1 2023 results in brief:
• increase in consolidated revenues by over 63%
• increase in gross margin by 32%
• from an annualized perspective, Bittnet Group recorded a 35% increase in operating profit to the value of 6 million lei
• negative gross result as a result of the increase in investments in the operational area, necessary from 2022 for the development of the business to reach the level of 500 million lei
Bittnet Group (BNET), the first Romanian group of IT companies listed on the BVB main market, integrator of IT&C services and leader in the IT training market in Romania, announces the interim financial results for the first quarter of the year.
The group reports consolidated revenues in the amount of 53.5 million lei, up by over 63% compared to the same period of the previous year, as a result of the accelerated growth of the IT&C integration activity – an increase of 80% compared to Q1 2022.
“Bittnet’s results announced today are part of the series of positive milestones that the group has been achieving since the beginning of the year, on the way to the goal of profitability: the successful completion of the largest round of capital increase in our history, the change of the shareholding structure and the approval of the revenue and expenditure budget by almost unanimous vote of our shareholders, thus confirming our vision for the future. I am convinced that the strong cash position: 43 million lei at the end of March, the ability to produce a positive cash flow year on year and the increased possibility to access financing will allow us to successfully continue our M&A strategy. Moreover, the group’s new operational structure, developed last year, is perfectly capable of supporting these development plans,” said Mihai Logofătu, CEO and co-founder of Bittnet Group.
At the level of gross margin, Bittnet Group registers a 32% increase from 6.5 million lei in Q1 2022 to 8.6 million lei in Q1 2023. Increased investment in the group’s operational structure in 2022 for its development towards reaching the level of 500 million lei led to the recording of an operational loss at the group level in this first quarter of the year of 2.3 million lei. At the level of the financial result, we record a decrease in the loss, from 3.1 million lei in Q1 2022 to 574 thousand lei in the first three months of 2023. Thus, the gross result remains in negative territory: a gross loss of 3.3 million lei, versus 3.5 million lei in Q1 2022.
In the last 12 months, the evolution of the results reconfirms the Bittnet group’s ability to increase revenues and operational profitability: consolidated revenues amount to 213 million lei, up by almost 74% compared to the previous period, and the gross margin to 45 million lei, increasing with 67%. During this time, the operating profit had a positive evolution reaching the value of 6 million lei, increasing by 35%.
Since its listing in 2015 on the Bucharest Stock Exchange, the Bittnet group has recorded an average annualized growth rate (CAGR) of 48% in revenue, 59% in assets, 69% in equity and 40% in operating profit. Also, during this time frame, the average annual return on equity (ROE) was 55%.
About Bitnet Group
Bittnet group is the most dynamic technology group in Romania, the first IT company listed on BVB. Currently, Bittnet Group is organized in 4 divisions:
• Education (Bittnet Training, Equatorial)
Cloud & Infrastructure (Dendrio, Optimizor, TopTech, 2Net)
• Cybersecurity (Strong)
• Business Platforms & Software (Elian Solutions and Nenos).