Profit for the period
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|
|Mail, Parcels and Distribution||898||914||(16)||-1.8%|
|Payments, Mobile and Digital||
|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%|
|Depreciation, amortisation and impairments||132||142||(10)||-7.0%|
|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)
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.