Bittnet’s (BNET) standalone results show an increase of 58 percent in revenues, from RON 13.7 million to RON 21.7 million. Profit grew by 43 percent, from RON 1.2 million to RON 1.65 million.
IT integration brought RON 12.1 million (46 percent increase from 2016), IT training RON 8.1 million (49 percent increase), while cloud services had an increase of almost 400 percent, resulting in RON 1.6 million revenue in 2017.
Due to cost savings, GECAD NET managed to end 2017 on profit for the first time in 3 years, even though it has been under Bittnet’s management only for the last 3 months of the year. GECAD NET closed 2017 with a turnover of RON 21.5 million and net profit of RON 145,000.
Mihai Logofatu, Bittnet CEO: “With the 2017 consolidated turnover exceeding RON 43 million, we are now moving into a new league of medium-sized businesses. Nonetheless, we keep our values young and growing and we maintain our start-up and growth mentality as we see a significant potential for our continued, accelerated development.”
Management’s proposal is to reinvest the 2017 profits, according to the strategy chosen at the time of listing. Accordingly, the management intends to propose to the shareholders that the company increases its capital, by distributing free shares to the shareholders, using the retained profits and the share premiums from the capital increase completed in January 2018.
“We adopted the patented success model of Banca Transilvania, which combines capitalisation of profits through distribution of free shares and offering investors new shares, at a favourable price. The market already recognises the value of this model, taking into consideration the continuous increase in our shareholder base, which has surpassed 400 at the end of 2017,” said Cristian Logofatu, CFO at Bittnet.
Besides the acquisition of GECAD NET, which established the foundation for the creation of the first multi-cloud integrator in Romania, several other developments contributed to the company’s growth – opening two new regional offices in Iasi and Timisoara, expanding to more than 20 projects of the “managed services” type, in both cloud technology and cyber security, moving to new headquarters with a tripled capacity for delivering IT trainings as well as continually increasing revenues from exports, up by 75 percent from 2016, reaching EUR 520,000.
Since its listing on Bucharest Stock Exchange’s AeRO market in April 2015, Bittnet’s valuation has increased 5 times, from EUR 1.5 million to EUR 7.3 million in December 2017. In terms of liquidity, Bittnet was the sixth most traded company on the AeRO market.