Bittnet Group announces interim results for Q1 2023: We are on the right track to meet our recently established efficiency and profitability targets for 2023
- consolidated revenues increased by over 63%
- gross margin increased by 32%
- from an annualized perspective, Bittnet Group recorded a 35% increase of the operating profit, to RON 6 million
- negative gross result, following the increase in investments in the operational area, necessary starting 2022, for the development of the business to reach the RON 500 million level
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 RON 53.5 million, up by over 63% compared to the same period of the previous year, following the accelerated growth of the IT&C integration activity - an increase of 80% compared to Q1 2022.
Mihai Logofătu, CEO and co-founder of Bittnet Group, said: "Bittnet's results announced today are part of the positive milestones series that the group has been reaching starting the beginning of the year, on our way to meeting the profitability goal: 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 with an almost unanimous vote from our shareholders, thus confirming our vision for the future.
I am convinced that the strong cash position: RON 43 million at the end of March, the ability to produce a positive cash flow each 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."
At the gross margin level, Bittnet Group records a 32% increase from RON 6.5 million in Q1 2022 to RON 8.6 million in Q1 2023. The increased investment in the group's operational structure in 2022 for its development towards reaching the RON 500 million level, led to the recording of an operational loss at group level in this first quarter of the year, of RON 2.3 million lei. At the level of the financial result, we recorded a decrease of the loss, from RON 3.1 million in Q1 2022 to RON 574,000 in the first three months of 2023. Thus, the gross result remains in negative territory: a gross loss of RON 3.3 million, versus RON 3.5 million in Q1 2022.
In the last 12 months, the evolution of the results reconfirms Bittnet group's ability to increase revenues and operational profitability: consolidated revenues amount to RON 213 million, up by almost 74% compared to the previous period, while the gross margin amounts to RON 45 million, up by 67%. During this time, the operating profit had a positive evolution reaching a value of RON 6 million, up by 35%.
Since its listing on the Bucharest Stock Exchange in 2015, Bittnet group 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%.
Bittnet group is the most dynamic technology group in Romania, the first IT company listed on BVB. Currently, Bittnet Group is organized into 4 divisions:
- Education (Bittnet Training, Equatorial)
- Clould & Infrastructure (Dendrio, Optimizor, TopTech, 2Net)
- Cybersecurity (Fort)
- Business Platforms & Software (Elian Solutions si Nenos).
- This is a press release.