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| May 25, 2022 |
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2020 preliminary financial results

Release Date: 2/26/2021 6:28:02 PM

IRIS Code: 9BAB3


Current Report nr. 10 / 2021


Current report according to

Law 24/2017, FSA Reg 5/2018

Date of report


Name of the issuing entity


Legal Adress

Strada Soimus Nr. 23, Bloc 2, Apartament 24, Sector 4, Bucuresti


Blvd. Timisoara nr 26 Cladirea Plaza Romania Offices Spatiul PRO-01 Etaj 1 Sector 6, Bucuresti


021.527.16.00 / 021.527.16.98

Fiscal Code


Number with the Trade Registration


The market where the securities issued are traded:

Segment: BSE Main Market; Category: Standard


BNET - shares

BNET22, BNET23, BNET23A, BNET23C – bonds

Subscribed and paid share capital

26.443.139,30 RON

Total number of shares

229.049.725 shares face value RON 0.10 per share[1]



Availability of 2020 preliminary results


BITTNET SYSTEMS S.A. (hereinafter referred to as “the Company”) informs shareholders about the availability of preliminary financial results for fiscal year 2020. Attached to this report are the unaudited financial statements in IFRS format.

The full report with the preliminary financial unaudited results for the period ended December 31, 2020, which includes the letter from the CEO, the presentation of the activity and results of 2020, the interpretation of the financial results and the budget proposal for 2021, is available for investors on the company’s website at: https://investors.bittnet.ro/ro/rezultate-financiare/4q-2020/

Investors and analysts can also download the results in Excel format from the website.

Below the company presents the key financial indicators for 2020.

Key indicators

·         Revenue: 108.6 million lei (+9% versus 2019)

·         Operating profit: 4.3 million lei (+400%  versus 2019)

·         Operational cashflow: 8 million lei (similar as in 2019)

·         Cash position as of 31.12.2020: 24.8 million lei (+4 million versus 2019)

·         Equity: 27.6 million lei (±123% versus 2019)

·         Average annual increase in market capitalization: 65% as of 2015

Summary of preliminary 2020 results

Bittnet (BNET), a group of IT companies, listed on the Main Market of the Bucharest Stock Exchange, reported 108.6 million lei consolidated revenues in 2020 and an operating profit of 4.3 million lei, an increase of 40% compared to the same period of last year. The consolidated net result of the Group increased by almost RON 2.7 million, and consequently, Bittnet Group ended the year with a net profit.

In a year in which most of the companies were either severely affected or registering significant drops in turnover, Bittnet Group achieved an operating cash flow of over 8 million lei, which combined with access to the capital market, allowed the Group to carry out investments in the development of the Group. Consequently, in 2020 Bittnet Group made new investments worth over 10 million lei in Equatorial Gaming, The eLearning Company and Softbinator.

In the context of a national economic contraction of 3.9% in 2020, the technology division of the Bittnet Group, which includes Dendrio and Elian, recorded 96.6 million lei in revenues, an increase of over 11%. The gross margin grew 33%, and the division ended 2020 with an increase of over 4 million lei in operating profit, reaching 2.5 million lei. The Education Division's activity, represented by Bittnet Training and Equatorial, was impacted by the training budget cuts or freezes. Consequently, the revenues decreased by 6% compared to 2019. Nonetheless, the Group ended the year with an operating profit of 4.3 million lei and almost 25 million lei in cash, approximately 20% more than last year.

The market capitalization of BNET appreciated by 22% during 2020, reaching 159 million lei. In the course of 2020, approximately 40% of Bittnet's free-float was actively traded by investors. In 2020, Bucharest Stock Exchange included BNET shares in BET-XT, BET-XT-TR, BET-BK and BETPlus indices. As of March 22, 2021, BNET shares will also be included in two global indices: FTSE Global Micro-Cap and FTSE Total-Cap.

"Just as bridges are subjected to extreme endurance tests before they are open to the public, so has 2020 been for us - a sum of endurance tests for Bittnet Group. I am happy that we have passed these tests well. Our Group is financially and operationally ready for a new cycle of accelerated growth, adapted to the new business realities, challenges and local and international market opportunities. In a challenging year, we have still grown all our indicators, turning back to profit. In 2020, we generated a business of 140 million lei, but the international lockdowns and general elections in Romania resulted in delays finalization of the projects gained. We expect these delayed projects to have an additional, positive effect on our 2021 results," said Mihai Logofatu, CEO and co-founder of Bittnet Group.

Conference for investors

The conference with analysts to presentat the unaudited preliminary financial results as of December 31, 2020 will take place on March 2, 2021, starting with 10:00AM, Bucharest time (EET) and will be held in English language. The access link is available HERE.

The presentation of the annual results and plans for 2021-2023 will take place at the "Bittet Investor's Day" event, scheduled for April 15, 2021.




President of the Board

Mihai Alexandru Constantin Logofatu


[1] The share capital registered at the Trade Register is 264.431.393 shares. At the time of this report, the Issuer has submitted to ASF the request to issue the CIVM for the entire capital.



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