“Evidently, the uncertainty regarding the general evolution of the economy, the confidence of people and companies in the future, generated by the state of emergency declared as a result of the coronavirus pandemic, reduces our ability to make predictions, therefore, we have tempered our growth plans to just 25% for 2020”, stated Mihai Logofatu, CEO and Chairman of the Board of Directors of Bittnet.
Logofatu also said the current context significantly accelerated the digital transformation of local companies, “something we have expected to occur in the next three years, but it did in the last three weeks.”
According to Bittnet, the technology division, which includes the companies Dendrio and Elian, is further expected to be the main growth vector of revenue. The division targets revenue of RON107 million and a gross margin of RON22 million in 2020, while the education division, represented by Bittnet Training and Equatorial, eyes revenue of RON18 million and a gross margin of RON11 million in 2020.
The Group plans to continue investments for the development of the range of products and services, proposing its shareholders an investment budget of RON10 million which is to be directed for the launch of the UXI platform – a management system of training needs for strategic clients, and for the launch of new games developed by Equatorial.
Bittnet is currently carrying out a share capital increase operation targeting the amount of RON9 million, which will be allotted to funding the development of the group. Upon completing the share capital increase, Bittnet Group will also finalize the process of transferring shares on the regulated market of the Bucharest Stock Exchange.
Bittnet is 19% owned by Mihai and Cristian Logofatu brothers, while Razvan Capatina Grosanu holds a 11% stake.