2017 half year results

HIGHLIGHTS

18,029

MLN €

Total revenue

847

MLN €

Operating profit

510

MLN €

Profit for the period

182

MLN €

Capex

Group results

Operating profit for the first half of 2017 amounts to €847 million, slightly up on the figure for the same period of the previous year (€843 million in the first half of 2016).

CONSOLIDATED STATEMENT OF PROFIT AND LOSS

for the six months ended 30 June (€m)20172016Increase/(decrease)
Revenue from sales and services and insurance premium revenue 15,335 14,867 488 3.1%
Postal and Business Services 1,786 1,855 (69) -3.7%
Financial Services 2,298 2,315 (17) -0.7%
Insurance Services and Asset Management 11,148 10,583 565 5.3%
Other Services 103 114 (11) -9.6%
Other income from financial and insurance activities 2,665 2,781 (116) -4.2%
Financial Services 540 512 28 5.5%
Insurance Services and Asset Management 2,125 2,269 (144) -6.3%
Other operating income 29 34 (5) -14.7%
Postal and Business Services 26 29 (3) -10.3%
Financial Services 2 3 (1) -33.3%
Insurance Services and Asset Management 1 2 (1) -50.0%
Total revenue 18,029 17,682 347 2.0%
Cost of goods and services 1,197 1,215 (18) -1.5%
Net change in technical provisions for insurance business and other claims expenses 12,171 11,944 227 1.9%
Other expenses from financial and insurance activities 380 309 71 23.0%
Personnel expenses 2,934 2,985 (51) -1.7%
Capitalised costs and expenses (13) (8) (5) 62.5%
Other operating costs 232 95 137 n/s
Total costs 16,901 16,540 361 2.2%
EBITDA 1,128 1,142 (14) -1.2%
Depreciation, amortisation and impairments 281 299 (18) -6.0%
Operating profit/(loss) 847 843 4 0.5%
Finance  income/(costs) (84) 9 (93) n/s
Profit/(loss) on investments accounted for using the equity method 9 6 3 50.0%
Profit/(Loss) before tax 772 858 (86) -10.0%
Income tax expense 262 293 (31) -10.6%
Profit for the period 510 565 (55) -9.7%

n/s: not significant

GROUP - REVENUE BY OPERATING SEGMENT
(DATA IN MILLIONS OF EURO)

GROUP - REVENUE BY OPERATING SEGMENT

Total revenue of €18.0 billion is up 2% on the first half of 2016, primarily due to the previously mentioned positive performance of insurance services and asset management and the stable performance of Financial Services.

  • Postal and Business Services: contributed total revenue of €1,812 million, registering a reduction of 3.8% compared with the first half of 2016, due to a decline in traditional letter post.
  • Financial Services: total revenue is up from the €2,830 million of the first half of 2016 to €2,840 million, benefitting from an increase in “Other income from financial activities”, amounting to €540 million (up 5.5% on the €512 million of the first half of 2016).
  • Insurance Services and Asset Management segment: contributed €13.3 billion to total revenue (€12.9 billion in the same period of the previous year), with premium revenue amounting to €11.1 billion (premium revenue of €10.6 billion in the same period of 2016). This represents a solid performance for the period, given the sharp decline in the Life market compared with the positive performance of 2016 (market data for new business to June 2017 shows a contraction of approximately 12.9% at national level).
  • Other Services: total revenue, provided by PosteMobile and Consorzio per i Servizi di Telefonia Mobile, amounts to €103 million (€114 million in the same period of 2016), marking a reduction due to a decline in mobile service revenue, reflecting tough competition in the market.

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