2018 First quarter

HIGHLIGHTS

2.9

bn €

Total revenue

703

mln €

Operating profit

485

mln €

Profit for the period

56

mln €

Capex

Operating results

The performance in the first quarter of 2018 has resulted in consolidated operating profit of €703 million, an increase of 33.7% compared with the same period of the previous year (€526 million). This primarily reflects the positive performance recorded by Financial Services and reductions in operating costs and personnel expenses.

 

CONSOLIDATED STATEMENT OF PROFIT OR LOSS

Three months ended 31 March
Results of operations
(€m)
20182017Increase/(decrease)
Total revenue 2,884 2,833 51 1.8%
of which:
Mail, Parcels and Distribution 898 914 (16) -1.8%
Payments, Mobile and Digital

143

130 13 10.0%
Financial Services 1,519 1,462 57 3.9%
Insurance Services 324 327 (3) -0.9%
Total costs 2,049 2,165 (116) -5.4%
of which:
Total personnel expenses 1,430 1,480 (50) -3.4%
of which personnel expenses 1,424 1,478 (54) -3.7%
of which early retirement incentives 6 2 4 n/s
sOther operating costs 619 685 (66) -9.6%
EBITDA 835 668 167 25.0%
Depreciation, amortisation and impairments 132 142 (10) -7.0%
EBIT 703 526 177 33.7%
EBIT Margin 24.4% 18.6% 5.8%
Finance income/(costs) 8 6 2 33.3%
Profit before tax 711 532 179 33.6%
Income tax expense 226 181 45 24.9%
Profit for the year 485 351 134 38.2%
Earnings per share 0.372 0.269 0.10 38.2%

n/s: not significant

 

 

GROUP - TOTAL REVENUE BY OPERATING SEGMENT
(DATA IN MILLION EURO)

GROUP - TOTAL REVENUE BY OPERATING SEGMENT

 

The Group’s total revenue amounts to €2.9 billion, an increase of €51 million (1.8%) compared with the same period of the previous year.

  • Mail, Parcels and Distribution services: total revenue amounts to €898 million, a reduction of 1.8% compared with the first quarter of 2017. This is due to a decrease in traditional letter post, with the number of items falling from 838 million in 2017 to 813 million (a decline of 3.0%). Parcel revenue, on the other hand, continued to grow, with volumes rising 5.4% from 27.6 million items in the first quarter of 2017 to 29.1 million.
  • Payments, Mobile and Digital services: segment contributed €143 million to total revenue, up 10% on the first quarter of 2017. This figure includes revenue from payment services, e-money products and PosteMobile SpA’s telecommunications services.
  • Financial Services: total revenue is up from €1,462 million in the first quarter of 2017 to €1,519 million, marking an increase of 3.9% and reflecting the positive performance of the management of Postal Savings. Moreover, the figure for the comparative period included revenue from the investment in Banca del Mezzogiorno–MCC, amounting to approximately €25 million.
  • Insurance Services: this segment contributed €324 million to total revenue (€327 million in the same period of the previous year), reflecting a slowdown in the life business, where premium revenue is down from €5.9 billion in the first quarter of 2017 to €5.3 billion. In contrast, the non-life business performed well, with net premium revenue of €28 million, compared with €25 million in the first quarter of 2017.

 

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