2018 First quarter

HIGHLIGHTS

2.9

bn €

Total revenue

703

mln €

Operating profit

485

mln €

Profit for the period

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
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%

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.

OPERATING RESULTS: CONTRIBUTION BY OPERATING SEGMENT

2018 FIRST QUARTER

	Three months ended 31 March
Results of operations (€m)	2018	2017	Increase/(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%