HIGHLIGHTS
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) | 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% |
| 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)
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.