The year 2020 was a highly exceptional period due to the COVID-19 pandemic. For Viria, the developments during the year largely followed the same pattern as in the market in general. The company’s growth got off to a good start at the beginning of the year but then stopped when the outbreak of the pandemic led to uncertainty and delays in customers’ decision-making and the restrictions introduced by the authorities prevented customer deliveries. The situation levelled off during the early autumn and the second wave of the pandemic in the autumn did not have a negative impact on business. The final months of the year were very good, as customers started previously postponed projects and the new operating practices necessitated by remote work became well-established. Nevertheless, the uncertainty caused by the pandemic continued throughout the year and is likely to extend to 2021.
Viria’s revenue grew by 3.6 per cent to EUR 106.8 million. Adjusted EBITDA was EUR 6.2 million, or 5.8% of revenue. We can be satisfied with these figures considering the circumstances. COVID-19 reduced the growth expected for the year, but its overall impact on the company’s business for the full year was moderate. Marketing and travel expenses, for example, were lower than expected due to the pandemic, which supported profitability.
Revenue growth was mainly derived from Viria’s security business. The digital development business was hit harder by the uncertainty in the spring. That business only began to return to normal towards the end of the year, but the final months of the year were quite good.
Continuing services represent approximately a quarter of Viria’s business, which became a source of stability for the company in a period when the project business and consulting suffered from the uncertainty created by the pandemic. Increasing the share of continuing services is one of our priorities and we are seeing very good growth in cyber security SOC services, for example.
Viria operates in two growing segments that play a key role in the development of society: security and digital services. The COVID-19 saw the trend of digitalisation spread to industries and functions that have previously persisted with more traditional operating practices. This boosts the demand for Viria’s services and has also been reflected in digitalisation projects being increasingly linked to process renewal through service design.
As functions increasingly move online, the significance of cyber security is growing and extending further into the physical realm. Data breaches and various cyber attacks continue to increase and represent a significant threat to all industries. The shortage of information security experts creates demand for the comprehensive information security and corporate network services provided by Viria. Combined with our physical security solutions, they constitute a very comprehensive overall security offering.
Services related to the promotion of digitalisation and the more effective use of data are produced by two companies under Viria: Aureolis and Bitfactor. During the year under review, the companies engaged in closer cooperation and combined their service offering to create the Murros expert service. With more than 300 experts, the companies can serve customers very extensively. Our diverse expertise covers, for example, promoting the use of business intelligence, service design, digital service implementation as well as data analytics and artificial intelligence solutions for various data platforms.
The health and safety of our employees and customers are among our highest priorities, and the circumstances of the past year underscored their importance. I am proud of our employees, as they have quickly adapted to remote work and the best practices of safe in-office work while demonstrating agility and a customer-driven attitude in new circumstances. I want to take this opportunity to thank you all for your strong contribution during the year.
I also want to thank our customers and shareholders for their trust in Viria.