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.

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.

Key elements:

• Good demand for SAP and Business Central.
• Revenue from subscription services over 40% of the income for business solutions.
• Victoria Sundberg, Applicon’s new CEO. 
• Origo is the only Icelandic company nominated at Microsoft 2021 for our banking solutions that simplify the connection between business systems and banking services.
• Over 20 employees in software development in Serbia
• Access to knowledge we lack in Iceland.
• Growing demand for advisory services when it comes to bigger and more complex reformatory projects in Iceland.
• Continuing development in human resources and payroll systems for Kjarni, as well as the focus on SAP for larger companies. 

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

• Older supply lowered greatly and were less than 5% of stock.
• Tölvuteks (Origo’s subsidiary) strengthened Origo’s competitive position.
• Online sales saw an 152% increase and is now about 35% of the field’s income.
• Continued development of remote working solutions for companies.
• Online stores make it easier for companies to improve their services.
• Increased interest in products connected to services and online solutions as well as digital labels.
• Increased interest in queue systems, smart boxes and automated payment services.

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, Origo’s affiliate. 
• Subscription revenue increase of 37% in 2020.
• The impact on revenue noticeable because of the shift from data centers to cloud solutions
• 20.000 companies use Tempo.
• Strong financial stance and plans for increased growth.
• The globalization of products in full effect.
• Cost Tracker, our new product, is looking good. 
• The forming of a new team is well underway and will be concluded by the end of the first quarter of 2021. 
• Continued review of buying opportunities to increase product supply and access to new markets.