Report 2017



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Total revenue


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Operating profit


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Profit for the period


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The 2017 results highlight Poste Italiane’s strategic role in Italy’s development and the Company’s ability to generate profits, provide quality services to customers and at the same time create value for shareholders, employees and all our stakeholders.

These results reassure us about our ability to face the profound social, environmental and economic changes that are transforming the environment in which we operate, including a radical digital transformation, the continuing backdrop of globalisation, new demographic trends and lifestyles, and climate change.


In early 2018 we drew up the new Deliver 2022 Strategic Plan, which sets out a plan for the Group’s development in line with market needs. This includes a focus on professional development and the nurturing of talent, whilst committing to an investment programme of approximately €2.8 billion over the period of the Plan, centred on digital development, automation and reorganisation of the service model for retail, business and Public Administration customers.

We have completed a reorganisation of our operating segments, in order to improve the visibility and transparency of the main value drivers for each segment. A part of this process is the creation of the new Payments, Mobile and Digital segment, with the aim of centralising the management of payment services, which will also be extended to include the activities envisaged by the new European Payment Services Directive (PSD2).


We pay great attention to the sustainability of its activities in the awareness that it covers a strategic role in the development of the country and in reaching general sustainable development goals. This commitment translates into adopting and promoting values and conduct being attentive to the needs and expectations of stakeholders: integrity, transparency and a sense of responsibility and reliability steer our internal relations as well as relations with the outside world, generating trust and credibility in our work.

In line with Sustainable Development Goals, we intend to develop our own sustainability targets in order to integrate elements of sustainability in corporate policies, processes and long-term strategy up to a definition of a Group Sustainability Plan.

There are currently several activities put in place by the Company for its active participation in the construction and implementation of a local and global sustainable development model that focuses on the following main areas:


Reduction of the environmental impact of the buildings


(green buildings), internal processes (digitalisation) and means of transport (green mobility and sustainable logistics).




by means of promoting digitalisation, accessibility to products and services and secure information, also in collaboration with local players (entities, institutions, associations and Third Sector) with a view to active promotion of the principles of proximity and social cohesion.




operating in observance of the principle of no discrimination and equal opportunities, of health, safety and growth in intellectual capital.




defining an effective governance system and instruments of transparent dialogue with customers and suppliers

Areas of business

The Group’s activities are divided into four operating segments: Mail, Parcels and Distribution; Payments, Mobile and Digital; Financial Services; Insurance Services.


Mail, Parcels and Distribution; Payments, Mobile and Digital; Financial Services; Insurance Services


The operating segments, and especially Mail, Parcels and Distribution, are supported by two distribution channels for retail customers, on the one hand, and business and Public Administration customers, on the other. These channels operate alongside a series of corporate functions responsible for policy, governance, controls and the provision of services supporting business processes.

The organisational model, which ensures the development of synergies within the Group as part of an integrated approach to operations, is applied via governance and operating models, characterised by:

  • coherent and integrated management of the Group, ensuring a uniform and coordinated approach to the market, whilst taking into account the central importance of customers and exploiting potential synergies, as well as assigning responsibility for coordinating subsidiaries to the relevant functions within the Parent Company according to operating segment;
  • corporate functions capable of ensuring, through coordination and integration of their respective areas of expertise, coherent fulfilment of their assigned roles at Group level and the provision of shared services closely aligned with business needs, thus ensuring efficiency, economies of scale, quality and effective support for the different businesses.

Operating results

The performance in 2017 has enabled the Group to achieve consolidated operating profit of €1,123 million, registering growth of 7.9% compared with the previous year (€1,041 million). This was primarily due to the positive contribution to the result from the Insurance Services segment.

Profit for the year of €689 million is up 10.8% on the previous year (profit of €622 million).



Results of operations for the year ended 31 December (€m)20172016Increase/(decrease) 
Total revenue 10,629 10,643 (14) -0.1%
of which:        
Mail, Parcels and Distribution 3,631 3,822 (191) -5.0%
Payments, Mobile and Digital 586 570 16 2.8%
Financial Services 4,956 5,009 (53) -1.1%
Insurance Services 1,456 1,242 214 17.2%
Total costs 9,506 9,602 (96) -1.0%
of which:        
Total personnel expenses 6,093 6,241 (148) -2.4%
of which personnel expenses 5,594 5,732 (138) -2.4%
of which early retirement incentives 499 509 (10) -2.0%
Other operating costs 2,868 2,780 88 3.2%
Depreciation, amortisation and impairments 545 581 (36) -6.2%
EBITDA 1,668 1,622 46 2.8%
EBIT 1,123 1,041 82 7.9%
EBIT Margin 10.6% 9.8% 0.8%  
Finance income/(costs) and profit/(loss) on investments accounted for using the equity method (56) 15 (71) n/s
Profit before tax 1,067 1,056 11 1.0%
Income tax expense 378 434 (56) -12.9%
Profit for the year 689 622 67 10.8%
Earnings per share 0.53 0.48 0.05 10.9%
Dividend per share (€) 0.42 0.39 0.03 7.7%
ROE 9.6% 8.9% 0.7%  






The Group’s total revenue amounts to €10.6 billion and is broadly in line with the previous year (down 0.1%).

  • Mail, Parcels and Distribution services: amounts to €3,631 million, marking a decline of 5% compared with 2016. This reflects a reduction in traditional letter post, on the other hand parcel revenue continued to grow.
  • Payments, Mobile and Digital segment: hanno contribuito alla formazione dei ricavi per 586 milioni di euro e accolgono i ricavi dei servizi di pagamento, i prodotti di monetica e i servizi di telefonia PosteMobile SpA.
  • Financial Services: total revenue is down from €5,009 million in 2016 to €4,956 million (a decline of 1.1%). However, it should be noted that the figure for the comparable period included non-recurring income of €121 million generated by the sale of the Group’s investment in Visa Europe Ltd. and revenue resulting from the investment in Banca del Mezzogiorno–MCC, amounting to approximately €56 million. The figure for 2017, on the other hand, has benefitted from income of €91 million generated by the sale of shares in Mastercard Incorporated. After stripping out the above items from the figure for 2016, revenue for 2017 is up €33 million (1%).
  • Insurance Services: contributed €1,456 million to total revenue (€1,242 million in the previous year), confirming the good performance.



Financial position and cash flow

The Poste Italiane Group’s net invested capital at 31 December 2017 amounts to €1,983 million (€1,909 million at 31 December 2016).


Non-current assets total €3,077 million, marking an increase of €210 million compared with the end of 2016. This primarily reflects acquisition of the investment in FSIA Investimenti Srl, partially offset by the negative effect of the movements in non-current assets (capital expenditure of €467 million, offset by depreciation, amortisation and impairments of €545 million).

The Poste Italiane Group’s capital expenditure amounted to €467 million in 2017 (up €16 million or 3.5% on 2016) and was designed to support achievement of the objectives in the “Deliver 2022” Strategic Plan. Most expenditure is focused on Mail, Parcels and Distribution services, where the upgrade of the Group’s technological resources and its logistics network continued, with a view to boosting overall sorting capacity and responding to the growth in volumes driven by e-commerce, as well as to improving the quality of service provided. The process of renewing the hardware used in post offices and the evolution and enhancement of the applications used in supplying services also continued.

at 31 December (€m)20172016Increase/(decrease) 
Non-current assets:        
Property, plant and equipment 2,001 2,080 (79) -3.8%
Investment property 52 56 (4) -7.1%
Intangible assets 516 513 3 0.6%
Non-current financial assets 508 218 290 n/s
Total non-current assets 3,077 2,867 210 7.3%
Working capital:        
Inventories 138 137 1 0.7%
Trade receivables and other receivables and assets 6,032 5,843 189 3.2%
Trade payables and other liabilities (4,788) (4,724) (64) 1.4%
Current tax assets and liabilities 70 (73) 143 n/s
Total working capital: (b) 1,452 1,183 269 22.7%
Gross invested capital (a+b) 4,529 4,050 479 11.8%
Provisions for risks and charges (1,595) (1,507) (88) 5.8%
Provisions for employee termination benefits and pension plans (1,274) (1,347) 73 -5.4%
Deferred tax assets/(liabilities) 323 53 270 n/s
Non-current assets and disposal groups held for sale and liabilities related to assets held for sale - 660 (660) n/s
Net invested capital 1,983 1,909 74 3.9%
Equity 7,550 8,134 (584) -7.2%
Net (funds)/debt (5,567) (6,225) 658 -10.6%

n/s: not significant


Total net funds at 31 December 2017 amount to €5,567 million, down on the figure for 31 December 2016 (when net funds amounted to €6,225 million). This primarily reflects the reduction in the fair value of available-for-sale financial assets (€991 million). The fair value reserve for available-for-sale financial assets amounts to €520 million before tax (€1,512 million at 31 December 2016).

At 31 December 2016 (€m)Mail, Parcels & DistributionPayments, Mobile & DigitalFinancial ServicesInsurance ServicesEliminationsConsolidated amount
Financial liabilities 2,087 2,284 59,219 1,012 (3,681) 60,921
Technical provisions for insurance business* - - - 113,612 - 113,612
Financial assets (1,236) (2,609) (58,529) (115,596) 3,608 (174,362)
Net debt/(net funds) 851 (325) 690 (972) (73) 171
Cash and deposits attributable to BancoPosta - - (2,494) - - (2,494)
Cash and cash equivalents (1,556) (21) (1,320) (1,324) 319 (3,902)
Net (funds)/debt (705) (346) (3,124) (2,296) 246 (6,225)

* Technical provisions for the insurance business are shown net of technical provisions ceded to reinsurers.

At 31 December 2017 (€m)Mail, Parcels and DistributionPayments, Mobile & DigitalFinancial ServicesInsurance ServicesEliminationsConsolidated amount
Financial liabilities 2,249 2,970 62,063 1,017 (5,055) 63,244
Technical provisions for insurance business* - - - 123,579 - 123,579
Financial assets (1,097) (3,283) (60,688) (125,860) 4,162 (186,766)
Net debt/(net funds) 1,152 (313) 1,375 (1,264) (893) 57
Cash and deposits attributable to BancoPosta - - (3,196) - - (3,196)
Cash and cash equivalents (1,997) (21) (396) (907) 893 (2,428)
Net (funds)/debt (845) (334) (2,217) (2,171) - (5,567)

* Technical provisions for the insurance business are shown net of technical provisions ceded to reinsurers.