“The financial figures for Bittnet Group at 9 months look as follows: the operational profit returned to positive territory to RON5.7 million (compared to a loss of nearly RON1 million in first half of 2023). Total revenue reached to RON 278 million with a gross margin of RON44 million and EBITDA12.3 million. The non-operational result (one-off and financial) shows a loss of RON7.8 million vs RON 9.2 million last year. Thus, the gross profit at September2023 is a loss of RON 2 million vs a loss of RON4.3 million in September 2022,” the report reads.
Mihai Logofatu, CEO al Bittnet Group, said in the report that “The results we have achieved are not entirely satisfying, but they are a reflection of our constant efforts to improve efficiency. They show a positive trend: the result indicators (EBITDA, Operational Profit) are more than double compared to previous period, which gives us confidence that we can finish this year with a significantly higher profitability than last year. From the existing pipeline as we recorded at end of June (RON 185 million) in Q3 we already delivered projects of over RON 130 million and we continued to build new pipeline both for the end of this year and for 2024. Thus, for Q4 , the projects that we have under implementation is over RON100 million in revenue, with a gross margin of RON20 million and EBITDA of RON9 million.”
According to the report, “the internationalization process has started with creating presentations for western european clients, receiving positive feedback on initial meetings. In our Q4 plans, we aim to approach at least 100 new clients outside Romania and sign at least 3 contracts for Managed Services.”
“Some global companies that conducted massive layoffs have a presence in Romania, and a part of them have downscaled their operations in the country. These changes have significantly impacted the IT training market, leading to a dramatic decrease in demand,” the report reads.
Bittnet Systems has a market capitalization of RON156 million and is 13.7%-owned by Agista Investments, and 13.3% by Impetum Investments. BNET shares have traded 16.8% lower so far in 2023, amid deals worth RON20 million, as per stock market data.