Profit for the period
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)||2017||2016||Increase/(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%|
|Insurance Services and Asset Management||11,148||10,583||565||5.3%|
|Other income from financial and insurance activities||2,665||2,781||(116)||-4.2%|
|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%|
|Insurance Services and Asset Management||1||2||(1)||-50.0%|
|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%|
|Capitalised costs and expenses||(13)||(8)||(5)||62.5%|
|Other operating costs||232||95||137||n/s|
|Depreciation, amortisation and impairments||281||299||(18)||-6.0%|
|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)
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.