Romania's Bittnet Group swings to net profit in 2023

Total consolidated revenues surged 99.4% on the year to 383.2 million lei in 2023, Bittnet Systems said in an unaudited financial report filed with the Bucharest Stock Exchange, BVB, on Friday.

One of the factors that significantly contributed to this evolution was the entry into the consolidation perimeter of the Dataware company starting in June, Bittnet noted. "Excluding Dataware's contribution to total consolidated revenues, the organic growth recorded is 37% vs 2022, in line with the historical average analysed in other years as well," the company said.

Bittnet took full control of Dataware Consulting at the end of last year.

In 2023, Bittnet's operating profit rose by 45.9% year-on-year to a historical record of 12.1 million lei. The company also swung to a gross profit of 1.6 million lei last year, from a loss of 2 million lei in 2022.

The major points of difference between operating profit and gross profit were a Standard Operating Procedures (SOP) adjustment of about 1 million lei and financial expenses of 7.2 million lei, which constituted a 67% increase over the previous year.

The group's total assets saw a 38.5% annual hike to 305.5 million lei in 2023, while its total debt rose by 31.3% to 214.1 million lei.

In 2024, the company targets a revenue of 430.6 million lei and a net profit of almost 5 million lei.

Founded in 2007, Bittnet is an IT solutions and training group comprising sixteen companies. It runs nine commercial brands split across four business lines which include education, digital infrastructure, cyber security, and software.

Bittnet Systems' shares traded 2.56% lower at 0.266 lei as of 1153 CET on Monday on the BVB.

(1 euro=4.9753 lei)