Bittnet Group reports twofold increase of business to 146 million lei. The revenue pipeline for the 2nd semester has a value of 185 million lei, with a gross margin of 25%

Bittnet, the first Romanian group of IT companies listed on the BVB main market, announces the publication of its financial results for the first half of 2023. In the first semester of 2023, Bittnet Group recorded consolidated revenues of 146 million lei, 110% more compared to the same period of the previous year.

The gross margin generated was 23.5 million lei, up 32%, and indirect expenses amounted to 27.6 million lei, +86% compared to H1 2022, which led to an operational loss of 954 thousand lei, compared to a profit of 3.6 million lei recorded in H1 2022.

“In the past, Bittnet recorded a level of profitability of approximately 4%, in line with the average profitability in Romania. In the medium and long term, our objective is to bring this indicator to the range of 8-10%, at the same level as the international average of the industry in which we operate. In order to achieve this goal, we aim to increase the weight of the services provided, expand the customer base at the international level, impose a better control of administrative costs and increase the gross margin generated and the cross-selling activity between the four pillars of business – education , cloud, infrastructure, cyber security and business applications & software. In S1 2023, we attracted 400 new customers to the group, 85% coming from the newly acquired companies – Top Tech, 2Net and Dataware – and 15% from organic growth”, said Mihai Logofatu, CEO of the Bittnet Group.

In the first half of 2023, Bittnet focused on integrating and building synergies between existing companies already acquired, completing the integration of TopTech, 2Net and Dataware, during which it evolved from a structure composed of two divisions, to an agile, focused structure on specialization, composed of four independent pillars.

“A business can have diversity, which is undoubtedly advantageous, but managing it can be quite difficult. The integration of the new companies represents a significant step taken by Bittnet in obtaining synergies between the four business pillars of the group. This strategic approach has the potential to lead the group towards achieving profitability by the end of the current year”, says Anca Manitu, member of the Board of Directors, representative of Impetum Group.

For the second half of the year, Bittnet Group has a confirmed revenue pipeline of 185 million lei, for which it aims to return to the historical gross margin of 25%. Thus, combined with indirect expenses of 27 million lei, in line with H1 2023, this revenue structure has the potential to lead to the budgeted operating profit for 2023, in the amount of 18 million lei.

Bittnet’s H1 2023 report is available on the company’s investor relations website, and the results conference call will take place on Tuesday, August 29, starting at 10 a.m. https://investors.bittnet.ro/rezultate-financiare/2q-2023/

Bittnet Group (BNET) is the most dynamic technology group in the Romanian market, being the first group of IT companies in Romania listed on the main market of the Bucharest Stock Exchange (BVB), included in the BET-XT, FTSE Russel Micro-Cap indices and MSCI Frontier IMI. Bittnet operates as an IT&C services integrator and is a leader in IT training in Romania. Its structure is organized into four main pillars of activity: education, cloud and infrastructure, cyber security and business applications and software.