HIGHLIGHTS
GROUP RESULTS
The Group’s reports a positive operating performance for the first nine months of 2015, with operating profit of €930 million up 27% on the same period of 2014 (€733 million in the first nine months of 2014) and profit for the period of €622 million (€333 million for the first nine months of 2014).
CONSOLIDATED STATEMENT OF PROFIT AND LOSS AS OF 30 SEPTEMBER 2015
| for the nine months ended 30 September | Increase/(decrease) | |||
|---|---|---|---|---|
| (€m) | 2015 | 2014 | Values | % |
| Revenue from sales and services and insurance premium revenue | 21,041 | 19,499 | 1,542 | 7.9% |
| Postal and Business Services | 2,787 | 2,965 | (178) | -6.0% |
| Financial Services | 3,532 | 3,616 | (84) | -2.3% |
| Insurance Services | 14,543 | 12,740 | 1,803 | 14.2% |
| Other Services | 179 | 178 | 1 | 0.6% |
| Other income from financial and insurance activities | 2,828 | 2,985 | (157) | -5.3% |
| Financial Services | 441 | 339 | 102 | 30.1% |
| Insurance Services | 2,387 | 2,646 | (259) | -9.8% |
| Other operating income | 52 | 76 | (24) | -31.6% |
| Postal and Business Services | 49 | 69 | (20) | -29.0% |
| Financial Services | 1 | 5 | (4) | -80.0% |
| Other Services | 2 | 2 | - | n/s |
| Total revenue | 23,921 | 22,560 | 1,361 | 6.0% |
| Cost of goods and services | 1,864 | 1,930 | (66) | -3.4% |
| Net change in technical provisions for insurance business and other claims expenses | 15,475 | 14,641 | 834 | 5.7% |
| Other expenses from financial and insurance activities | 684 | 71 | 613 | n/s |
| Personnel expenses | 4,370 | 4,482 | (112) | -2.5% |
| Capitalised costs and expenses | (21) | (16) | (5) | 31.3% |
| Other operating costs | 194 | 227 | (33) | -14.5% |
| Total costs | 22,566 | 21,335 | 1,231 | 5.8% |
| EBITDA | 1,355 | 1,225 | 130 | 10.6% |
| Depreciation, amortisation and impairments | 425 | 492 | (67) | -13.6% |
| Operating profit/(loss) | 930 | 733 | 197 | 26.9% |
| Finance income/(costs) (*) | 41 | 15 | 26 | n/s |
| Profit/(Loss) before tax | 971 | 748 | 223 | 29.8% |
| Income tax expense | 349 | 415 | (66) | -15.9% |
| Profit for the period | 622 | 333 | 289 | 86.8% |
n/s: not significant
(*) The figure for the first nine months of 2014 includes losses on investments accounted for using the equity method, amounting to €1 million.
GROUP - Revenue by operating segment
(data in millions of euro)
In the first nine months of 2015, total revenues, including insurance premiums, grew to €23.9 billion, a 6% increase on the same period in 2014.
- Commercial and postal services: total revenue from Postal and Business services is down €198 million compared with 2014, reflecting the growing popularity of digital media and communication, which has led to a progressive eduction in demand for traditional products and services.
- Financial Services: total revenue from Financial services is up €14 million on the same period of the previous year, driven by the positive performance of other income from financial activities, which is up from the €339 million of 2014 to €441 million in the first nine months of 2015 (an increase of 30%). This category of revenue includes income from the sale of available-for-sale financial assets, in the form of euro area government securities, in which the postal current account deposits of BancoPosta RFC’s private customers are invested. In spite of an increase in average current account deposits, revenue and other income is down €84 million as a result of a reduction in the average interest earned on deposits invested in government securities and on interest-bearing deposits with the Ministry of the Economy and Finance.
- Insurance Services: the Insurance services segment delivered excellent results during the period, with Group companies (represented by Poste Vita and its subsidiary, Poste Assicura) recording premium revenue of €14.5 billion (€12.7 billion in the same period of 2014). This primarily reflects the performances of traditional Class I investment and savings products, where the Group has built up a strong presence. Other income from financial and insurance activities is, however, down from the €2,646 million of 2014 to €2,387 million, reflecting fair value losses on the financial instruments held to cover obligations to policyholders.
- Other Services: total revenue from other services amounts to €181 million. This is in line with the same period of 2014, despite improved operating results from Poste Mobile.