{"id":10104,"date":"2020-11-12T13:33:52","date_gmt":"2020-11-12T11:33:52","guid":{"rendered":"https:\/\/investors.bittnet.ro\/current-and-historical-financial-results\/bnet-report-9-months-2020\/key-elements-of-financial-statements\/3-2-financial-results-technology-division\/"},"modified":"2020-11-12T13:58:33","modified_gmt":"2020-11-12T11:58:33","slug":"3-2-financial-results-technology-division","status":"publish","type":"page","link":"https:\/\/investors.bittnet.ro\/en\/current-and-historical-financial-results\/3q-2020\/key-elements-of-financial-statements\/3-2-financial-results-technology-division\/","title":{"rendered":"3.2. Financial results Technology Division"},"content":{"rendered":"

Financial results\u00a0<\/span><\/span>Technology<\/span><\/span>\u00a0Division<\/span><\/span>\u00a0<\/span><\/strong><\/h1>\n

From a financial point of view, the evolution of the Technology Division in 9<\/span><\/span>\u00a0months\u00a0<\/span><\/span>2020 compared to 2019 shows a 42% increase in sales, much faster in the case of higher value-added services (78%), which generated a higher gross margin<\/span><\/span>,<\/span><\/span>\u00a0more than triple – almost\u00a0<\/span><\/span>with RON\u00a0<\/span><\/span>7 million more than\u00a0<\/span><\/span>in\u00a0<\/span><\/span>the first nine<\/span><\/span>\u00a0<\/span><\/span>months<\/span><\/span>\u00a0of<\/span><\/span>\u00a0<\/span><\/span>2019. Taking into account the reduction of fixed costs and the increase (<\/span><\/span>as\u00a0<\/span><\/span>percentage) of variable expenses much smaller than the gross margin, the operating result of the Technology Division is a profit of almost\u00a0<\/span><\/span>RON\u00a0<\/span><\/span>1,5 million, increasing by\u00a0<\/span><\/span>RON\u00a0<\/span><\/span>6.7 million compared to the same period last year.<\/span><\/span>\u00a0<\/span><\/p>\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n
<\/td>\n30\/Sep\/20<\/strong><\/td>\n30\/Sep\/19<\/strong><\/td>\nEvolution<\/strong><\/td>\n<\/tr>\n
Revenues from contracts with customers<\/strong><\/td>\n68,357,028<\/u><\/strong><\/td>\n48,154,782<\/u><\/strong><\/td>\n41.95%<\/td>\n<\/tr>\n
Revenues from the provision of services<\/td>\n13,445,828<\/td>\n7,524,848<\/td>\n78.69%<\/td>\n<\/tr>\n
Sale of goods<\/td>\n54,911,200<\/td>\n40,629,934<\/td>\n35.15%<\/td>\n<\/tr>\n
Cost of sales<\/strong><\/td>\n(58,608,338)<\/u><\/strong><\/td>\n(45,282,729)<\/u><\/strong><\/td>\n29.43%<\/td>\n<\/tr>\n
The cost of selling goods \/ materials<\/td>\n(48,308,963)<\/td>\n(36,732,069)<\/td>\n31.52%<\/td>\n<\/tr>\n
Cloud services<\/td>\n(3,650,522)<\/td>\n(1,437,522)<\/td>\n153.95%<\/td>\n<\/tr>\n
Hours – Individual<\/td>\n(6,648,853)<\/td>\n(7,113,139)<\/td>\n-6.53%<\/td>\n<\/tr>\n
Gross margin<\/strong><\/td>\n9,748,691<\/strong><\/td>\n2,872,053<\/strong><\/td>\n239.43%<\/td>\n<\/tr>\n
Other incomes<\/strong><\/td>\n119,786<\/strong><\/td>\n(147,532)<\/strong><\/td>\n<\/td>\n<\/tr>\n
Sales \/ distribution expenses<\/strong><\/td>\n(3,925,394)<\/u><\/strong><\/td>\n(3,306,826<\/u><\/strong><\/td>\n18.71%<\/td>\n<\/tr>\n
Team expenses<\/td>\n(3,567,314)<\/td>\n(3,028,819)<\/td>\n17.78%<\/td>\n<\/tr>\n
Advertisement<\/td>\n(358,079)<\/td>\n(278,007)<\/td>\n28.80%<\/td>\n<\/tr>\n
Administrative costs<\/strong><\/td>\n(4,460,704)<\/u><\/strong><\/td>\n(4,671,406)<\/u><\/strong><\/td>\n-4.51%<\/td>\n<\/tr>\n
Staff expenditure<\/td>\n(2,539,292)<\/td>\n(2,567,403)<\/td>\n-1.09%<\/td>\n<\/tr>\n
Depreciation (and Rent)<\/td>\n(950,704)<\/td>\n(851,591)<\/td>\n11.64%<\/td>\n<\/tr>\n
Operational profit<\/strong><\/td>\n1,482,379<\/strong><\/td>\n(5,253,711)<\/strong><\/td>\n<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n

Increasing spending on goods is natural in the context of increasing turnover.<\/span>\u00a0<\/span><\/p>\n

The increase in sales expenses has two components:<\/span>\u00a0<\/span><\/p>\n