Operating profit improved slightly in January-March 2025 compared to the first quarter of 2024, from -RON7.9 million on March 31, 2024 to -RON7.3 million on March 31, 2025. Gross profit and net profit remained at levels close to those of the same period of 2024: -RON11 million and -RON9.5 million for Q1/2025, respectively.
While revenues from the provision of services remained at a relatively similar level compared to the first quarter of 2024, namely RON15.8 million, revenues from the delivery of solutions (equipment, licenses, subscriptions) increased by 21%, from RON25 million to RON30.5 million.
“We expect that this year the seasonality will be more pronounced than in the past, with a significant concentration of commercial activity in the second semester. Until the elections in May, many projects – including those with European funding – have been postponed. Therefore, we maintain a balanced approach and a carefully calibrated strategy. Like previous years, Q1 has a low share in total annual revenues – below 15% – which is specific to our industry, especially in the digital infrastructure vertical. Projects are negotiated in the first part of the year, but are implemented and invoiced in the second half. The backlog of signed contracts with delivery by the end of the year is approximately RON265 million, with an estimated gross margin of RON47 million. Added to this is a qualified pipeline of RON198 million, with a historical conversion rate of 50%. We continue to focus on projects with IT services delivered by our own team, in all three strategic directions – digital infrastructure, IT education and business platforms & applications –, where the added value and margins are higher,” said Mihai Logofatu, CEO of Bittnet.
BNET shares have traded 30% lower over the last year, triggering a market capitalization of RON96 million. The company’s shareholders include the funds Agista Investments and Impetum, with ownership stakes of 13.75% and 13.3%, respectively.