“We have had the best first quarter in the history of Bittnet. The first quarter traditionally always represents a period with the lowest revenue and the lowest profit in a year (or rather, a loss). Q1 2020 has brought a 21% increase in consolidated revenues and a doubling of the gross margin. This means that for the very first time in our history, we have managed to overpass the threshold of operational profitability already in the first quarter. We consider it a good signal, especially given the turbulence from March 2020,” said Mihai Logofatu, CEO and co-founder of Bittnet Group.
The Education Division, which includes Bittnet Training and Equatorial, reported revenues of RON2.2 million in the first quarter, double compared with the first quarter of 2019, and its operating profit grew by 700,000 lei.
With the announcement of the state of emergency in Romania mid-March, all courses and seminars delivered by Bittnet Training were migrated to live-virtual format. Just below 10% of classes were postponed or canceled in the second half of March.
In the Technology Division, Dendrio and Elian registered 14% growth in revenues, to RON17 million. The division’s operating profit grew by more than RON1.5 million compare with the first quarter of 2019.
For 2020, Bittnet estimates revenues of RON125 million and a net profit of RON2.5 million.
In the first quarter, the group has won and secured contracts totaling RON30 million.
Bittnet was founded in 2007in Bucharest by brothers Mihai and Cristian Logofatu, offering IT training and solutions in Romania and abroad.