Origo’s income grew by 15% and the company’s EBITDA was 1.245 million ISK, an improvement from last year. Our user solutions department saw a growth in income, and we did good in keeping up the income in software solutions. Great changes in the travel industry had an effect on Origo’s income in the first part of 2020.
A part of the software solution parts of the company had challenges at the beginning of 2020 when travel greatly decreased, because Origo had invested in digital travel developing. Origo decided to keep investing in travel solutions and be prepared when the travel industry recovered, as well as shifting employees into different areas where the need was more immediate, such as healthcare solutions and projects connected to digital development. In the latter part of 2020 Origo had corrected the challenges.
Our fourth quarter in software solutions was operationally beneficial and a lot of demand was for special development, advice and a growth in subscription numbers. The travel industry still hasn’t recovered so solutions for certain industries, such as airlines and travel are still limited.
8,500 licenses in CCQ
Aviaxis: good initial market reaction
Software solutions invested more than ever in our own development projects and the set up was changed to better support our product development and new products, but Origo is actively working in new solutions for global markets as well as products mainly made for national use.
A solid growth was in healthcare solutions because of a strong demand as well as big projects focused on the tracking of COVID-19 at the boarders in the first half of 2020 and the planning and control of vaccinations at the end of the year. The year saw a great increase in interest in remote healthcare and new services were added to Heilsuvera, and we saw a 43% increase in users. New apps for home care for the elderly, nursing home and hospitals were put on the market under the name Smásaga.
The change in the market created by the pandemic hurried along digital development. Origo’s strong stance in healthcare solutions provided us with good results in COVID-19 testing and improved the publics’ interaction with healthcare services. Most interactions were limited and done remotely without the input of healthcare workers. With those changes, the healthcare services managed to oversee over 5000 COVID-19 tests every day for a time.
Projects connected to moving services over to the digital and remote field increased a lot in 2020 and Origo plans to strengthen its position in digital and remote solutions even more in the upcoming year.
Key elements in Origo’s software solutions
Origo’s business solutions field did very well in the fourth quarter and the income growth is positive, increased income distributions between clients and fields.
Launch of SAP S/4HANA at VÍS and its sale to Samskip, who will implement the system in 2021.
Our sales were good in our additional solutions for SAP systems, banking, e-documents and automation, in the wake of our product development in 2020. Our human resources and payroll systems kept building strength since current clients added to their services and new clients joined.
We experienced good sales at the end of the year in MS Business Central and Origo’s additional services solutions intended for the Microsoft platform are coming along great.
Income from software sales and subscriptions is now over 40% of the fields’ income and we plan on increasing that percentage, even though increase in advisory sales will still be active.
Our focus on research and development over the last years has led to a more even income and growth opportunities. In our product development we have increased our focus on solutions that can be sold on global markets.
In the beginning of summer, SAP lending system was implemented in Sweden’s SBAB bank, with over 400.000 deposit accounts. At the same time, Origo’s payment solution was implemented.
At the end of September, we signed a contract for continuing implementation of SAP. Both Landshypotek and SBAB have increased in their operating services with Application, and we see an opportunity to grow the cooperation even more.
At the end of the quarter Landhypotek bank in Sweden confirmed the purchase of SAP S/4HANA business software. We are working on interesting new methods in remote banking from Origo. This purchase highlights the banks satisfaction with the SAP systems and the work with Applicon, Origo’s subsidiary in Sweden.
Origo nominated for Microsoft Award 2021.
Part of Origo's employees in Serbia.
Demand for Origo security solutions is growing rapidly.
Income from operating services was acceptable factoring in the changes in the operating environment last year, for example with the increased use of cloud services. Origo places emphasis on being a part of those changes. Our goal is not to host data centers but be a strong base for geographical distancing of systems and data.
Origo places emphasis on being able to take over services and operating it for clients, whether it be hosted in Iceland or in foreign clouds. At the same time the company is constantly working on improvements in the automation and cost-efficiency of operational services.
An increase in cyberattacks as well as the increased use of communication solutions calls for well-developed safety measures and monitoring. Origo has specialized in helping companies securing themselves from cyberattacks and we are seeing a rise in demand for our services, knowledge and experience in security. Our safety solution team has presented their projects in Scandinavia. Our well-developed solutions, knowledge and experience has garnered notice and one of our goals is to add to our client base and entering global markets.
Our revenue outlook in operation services are positive, and we expect the company to increase its margin of services in the latter part of 2021, both in solution development and the transformation of older products and services.
Key elements in Operating Services
The conditions for the sale of user software were favorable in 2020 and resulted in a change in our operations and a very acceptable income in the field.
Our challenge was to secure products for our clients in a time of global shortage, but our knowledge and strong connections made it possible.
Increased sales in user solutions up to 20% the second year in a row. Sales were shifted from traditional stores to online shops and has resulted in 152% increae in our online sales. Our investment in Tölvutek last year and great knowledge of sound and image solutions are favorable.
Key elements in user software sales
Online sales saw an 152% increase
Tempo, Origo’s affiliate, has had a good year. It is somewhat impacted by COVID-19, but also by the changes connected to placing the company in the next stages of growth.
The company’s clients are now over 20.000 companies and they are seeing a good increase in revenue and subscription revenue and a clear path has been set for a continued movement away from data centers to cloud solutions.
18% increase in revenue and 24% EBITDA for Tempo
Borgartún 37105 ReykjavíkSSN: 530292-2079Phone 5161000